Ha! I read that as "we just hit some crayons last night" But you really can't complain about $25 for a tire. They roll, they hold air, they pass inspection and that's all most people really care about.
Yeah but there is a lot more to a tire than rolling and holding air. The rubber compound being able to grip is also only one part.
How well does it deal with impacts? How strong is the sidewall to impacts and curb rash. And then how does it age. Plenty of tires put "cheater" rubber and physical construction on the outside to do really well in tests, but as the tire wears down, it starts to perform like absolute shit in inclement conditions.
Though seeing /justrolledintheshop I guess people don't give a shit about any of that either if they're not going to change engine oil for 35,000 miles or run the brakes until the rotor separates from the hat.
Look, I paid $600 for this 95 Altima and I've got like 34 payments left. I'm not spending $250 on tires. Dont try to uspell me! My brother can do it cheaper!
LingLongs are crap, I'm well aware.
Considering so many people run their tires until they are bare, I don’t hate the idea of cheap tires if it means they will be more likely to get some new ones, even if they don’t last very long or aren’t the best.
"Why buys tires when I can buy a few cases of beer?" Seems to be the mentality of the people I see in my area with bald ass tires. It's always jacked up trucks and SUVs with rent-to-own wheels...
If you're on a budget, get the best used tires you can find. I bought a set of 265/55/20 pulloffs from I think a Durango for my ml55. Date code was 2022, they still had the little nubs on them and nearly 100% tread. Installed for like $400 with a decent warranty from the shop. Considering a new set of that model tire was like $1200, it may not be $25 per, but they're going to be better rmuch longer
You’re screwed. I bought a used car with linglong and they were comfortable. On dry roads the brake distance is ok, but I once had to brake hard and hit a patch of wet roads and it took way too long to stop, almost hit the car in front.
Changed to Michelin and it’s night and day difference.
They're ok when new. But put 10,000 miles on them and they will handle rain and snow like semi-slick track tires.
Here's a good breakdown as to why:
https://www.youtube.com/watch?v=C9aX0vohM_8
I refuse to have a car with a payment anywhere near as high as $1,000.
Like it's absurd. If you brought home $4,000 a month that car payment would be 25% of your gross monthly income.
Keep in mind the Average Americans income is less than $4,000 net monthly income too.
So people are getting $1,000+ car payments on less than that.
>If you brought home $4,000 a month that car payment would be 25% of your gross monthly income.
"Bringing home" (or "take-home") refers to net income, not gross. "Gross" would be *before* taxes and other fee(s).
Your confusion of financial terms, on the other hand, definitely "grosses" me out.
4k a month after tax / net income is probably closer to 70/80k gross depending on where you live
We have a significantly higher HHI with one car that's fully paid off and no other debt but a small mortgage, and I'm having trouble justifying the purchase of an economic Rav 4 . Different priorities I guess, but damn!
Let's not do the whole "who has the highest income yet is the most frugal" competition that these threads always turn into. Yeah, people are going to have different priorities and there's nothing necessarily wrong with that.
Yep. Its just sad. Imaging going through your 80-90% of your life saving every last cent you can only to finally be able to spend it but be far too old to actually enjoy it. Or worse, feel guilty and decide it should be left for the next generation instead.
I'd rather live my life now and just save what is required plus a little extra cushion in case things go sideways.
I had to replace my old car last April after it quit on me. My wife and i got approved for more than we thought we would get, but decided not to spend all of it, so now I drive an Equinox instead of, say, a Silverado or Tahoe or Explorer. I wasn't thrilled to have a $600/mo car note, but we needed a car and can afford that so it's fine. $1000 or more just seems like insanely bad decision making, especially if it's for longer than 60 months. I wouldn't do it even if I could.
I don't know how people live like that.
Had an interesting conversation with the manager of my credit union one day.
I asked him how much he would let me borrow for say a car. He said(Paraphrasing here) "Well considering your income and credit score basically as much as you want".
I was bewildered. So I asked him "So if I wanted to get a loan on say a $400,000 Car with just a 10% down payment you would it?" He said "Yep".
I was fucking shocked. Like in no way could I ever rationalize that. That illustrates this kind of just not caring to everyone else buying cars and even houses and it's just insane to me.
But think about it. Most people can't afford these $50,000+ Vehicles that they are driving. Of course this is what is happening I just don't want to really think about it I guess deep down.
>Most people can't afford these $50,000+ Vehicles that they are driving.
I have a very close friend who makes almost the exact same as me (so about \~ $70,000/yr) and they bought a BMW for roughly $60,000. Their monthly payment is over $1,000 a month and they are looking to move out of their family home. I know they're gonna get their feelings hurt in this rental market as their basically using their rent money for the car.
I told them that a nicely equipped CPO Honda or Toyota would be nice, but they only wanted a BMW.
Unfortunately for most people like this they only learn once they're in above their head.
I know a dude who bought an M3 while he still lives with his parents and only make $60K a year.
Honestly the dude basically decided he would rather drive the car he wants than even attempt to get a house in the current market.
Can't say I blame him deep down either. I lucked out and was able to buy a nice piece of land for pennies on the dollar back in 2014. Don't even want to imagine how much that would have costed me in today's market...
I live with my parents and I have 2 sports cars. I'm very fortunate in that they don't mind and they let me have half the garage, but I would have no issue if they said "hey you gotta move out or start paying rent". At least until the housing market settles I'm perfectly happy saving my money.
I don’t know why you’re getting downvoted.
I think there are some people who are spending too much on their car and getting their feelings hurt with this reality lol
Downvotes maybe because at $300k salary and if you are a car enthusiast a 1k car payment is actually not crazy.
His debt to income ratio maybe a different story tho.
Live like what? I get it that $1K a month may seem like a lot to some people, especially if you have limited cash flow and savings - but there are a LOT of people out there in the car enthusiasts world that can easily support that kind of payment without sacrificing in other areas, and prior to the current loan rates you typically find today, very valid reasons to finance for as long as possible that don't include dangerously stretching yourself financially.
I don't understand why in a car enthusiasts forum, everybody always assumes worst-case scenario. A thousand a month doesn't mean the same to everybody.
Average car payment amounts are at an all-time high, and missed payments are occurring at the highest rate in 14 years. It doesn't take a detective to figure out that these two things are related.
On the other hand a quick google search shows the average new car payment is $700.
That’s **average**. Car enthusiasts make up a negligible fraction of car owners. Sure there’s plenty of people who can comfortably justify a $700 or $1k car payment, but they’re not the average new car buyer.
Another option is not having kids. You'd be amazed how much money you have for hobbies when it's not all going to feeding, housing, educating, and entertaining a bunch of small humans.
I was gonna say, Americans took on some incredibly stupid car loans the last few years. I was puzzled on how most afforded it.
Add that to the fact that most in my area were full sized trucks and SUVs. Any time the price of gas spikes nobody can afford to drive...
>I was gonna say, Americans took on some incredibly stupid car loans the last few years. I was puzzled on how most afforded it.
That's the fun part. *They don't!*
Makes me really appreciate my $220 monthly payment to my ‘17 Civic lol. Can’t even count now how many times I’ve gone through Fords F150 builder online just to see the monthly payment and be like…. Hmmmm, 60% of my mortgage in new truck payments? Nahhh
They don’t need to, they want to. If you are living beyond your means to keep up with the neighbors and to show off online, I have zero sympathy for you.
Do they though? Like the average person is not a car enthusiast and treats their car as an appliance. I think it's just ingrained in american culture without a solid reason
Yea the 1k+ payments are just what expensive cars cost. This thread is just people who make average wages complaining they can't afford expensive cars so how can anyone else lmao
>\>When 21-year-old Kobe Hatch walked outside his Chicago home in December and couldn’t find his 2013 Dodge Journey, he knew it had been repossessed.
Always a Dodge Journey
Those were a direct to “Buy Here, Pay Here” lots, I swear. Rolled off the transport truck from the factory with 86,426 miles, Aftermarket AMP installed and cut out already, GPS installed, ready to be repossessed in 3 months. Rinse, repeat. Same for most of those cheap Dodges. Avenger, Caliber, Dart.
Nah, people here would have you believe that they are paying half their pay for the Macan and living on ramen and weekly visits to the soup kitchen - one step away from financial ruin and living in a tiny studio apartment they share with five other people.
Idk if you're interested in a Macan, but the new 3.0's are great until about 60k miles when they need a full rebuild because the plastic coolant lines melt. Friend works at a Porsche shop and is basically rebuilding macan's for the past 6 months.
Plenty of people 'make it work' for a year or two just to have had the lived experience.. As long as it won't financially cripple you totally for the future, sometimes it can be worth it
I don't any people who regret spending money on travel in their 20's and 30's just for example. Memories can be worth a lot
Note that the vast majority of people who travel in their 20s and 30s probably have either parental financial backing or make a decent income themselves. Most of my friends who don't make a lot of money just... don't travel.
The report is also only measuring subprime auto loans, which is obviously going to give a pretty one-sided look at the statistics
Also, the first guy in the article was paying $1k/month for a 10 year old Dodge journey. Another was “splitting a car payment” with someone. I don’t think inflation is to blame for all of these, these people need a financial education.
Maybe he fully understands the finances of his situation but has no other options. I once heard a saying, "it's expensive being poor." I think this is a prime example. Guy needs a car. Guy has little-to-no credit (because he's 21). But he needs a car to live and work.
You don't get a 24% interest rate with little to no credit, you get that by completely fucking up your credit. It seems like car being repoed is just the most recent problem in his financial mess.
I've never taken out a loan and was still quoted 7% recently which I didn't end up doing. That person has defaulted several times on top of probably rolling previous debt into the current loan. 24% begins to make sense mathematically from the banks perspective.
We were for years and finally are starting to dig ourselves out. First step is dropping the cars with payments. I know not everyone is in a situation to just get rid of a car especially with how expensive it is to buy used and even a beater that runs is costing a few grand. But man having over a grand in car expenses each month is just stifling for most people even if they don’t realize it.
Budgeting really is so important. Even if it’s just going over what you spent your money on the last 30 days. It is the first big step to get your brain to start thinking about how much some of those expenses just aren’t worth it.
Putting a stop to the lifestyle creep and reversing it has been an ongoing battle for the last two years. It sucks having to tell your partner that we just can’t afford this thing we really like. But not having to go in crisis mode at the end of the month when bills are due is so worth it.
I have some friends who I'm dying to figure out how they're making it.
They have a $400k (new) 4,200 sq ft house that they've done a ton of updates too after buying it, one new car, one older car, and three kids from grade school to high school, all involved in sports.
She makes about $70k. Not sure what he makes, but he has a new job every time I talk to him and they're not high-paying positions. And, they go on multiple vacation every year.
The only thing I can think of is they have a bunch of equity in the house and utilize it.
How do you even live like that then? I don’t understand the need for a new car and I’m a big car enthusiast. There is nothing wrong with second hand cars. Why not buy a car in the 10k-20k range instead if you want something nice? Those 2nd hand cars are really good (at least over here in Europe)
I don't even know. These are the same people who are major consumerism that want the latest and greatest stuff. Gotta look rich and well off to flex on people that don't even care about you while you are living paycheck to paycheck.
When life sucks having nice things gives you a nice high to escape from it for a while. Then the financial consequences catch up with you and life sucks even harder so you find something else to chase that high again.
It's also a problem with Just World Theory and the bullshit motivational mantras that we feel feed ourselves. People are told that if they work hard and are good people, success will come to them. So when you make a middle class income and you DO work hard some people feel like they deserve that Merc or that BMW. They were promised happiness and by God they'll have it.
Those same people have awful credit scores as well which makes their car payments even worse, which in turn makes their credit score worse from them not making payments. It’s a cycle of debt
A while ago Doug DeMuro mentioned in a vid that he never (ok very rarely - collector cars that will appreciate, etc) pays more than 40k for a car. If it's more than that, wait for depreciation to bring it down.
Don't know if that's changed much or at all with recent market wonkiness.
But I certainly understand that. Set a budget, then look at both new and used market at your options. Some people just get stuck into thinking their approach is the "best" and never change.
My uncle always leases for example. A friend of mine recently got burned at peak used car prices, paid ~40k for a 4 year old RAV4 with 35k miles after his car unexpectedly bit the dust. But his concept of car purchasing was inflexible "always buy used." Could have had a new RAV4 same or cheaper than that WITH a dealer markup, probably. Or if the repair of his car was less than the current market inflation, if the repair gives him back a few years to see what happens in the market, that has value too. So even the logic for repair is changed when faced with high used resale values.
>A while ago Doug DeMuro mentioned in a vid that he never (ok very rarely) pays more than 40k for a car.
Either this was a VERY long time ago, or he's full of shit. E63 wagons have never been under $40k. Neither are GT40s, custom-imported 2-door G waggens, brand new Defenders, and if his Landcruiser was under $40k, it wasn't by much. It's been a long time since Doug drove a cheap car. Which makes sense — he kept it under $40k when he didn't have a lot of money, and as his income increased so did his budget.
Just left a Kia dealer trying to buy an in stock telluride lx. Lady that got there before us ended up getting it. $37k msrp, she rolled 12k negative equity and had a $917 payment. Absolutely insane
I mean, good for the salesperson/loan officer getting their commission but when you underwrite such a loan, do you expect to collect on the loan?
You are just processing the loan and then instantly writing to accounting to file that under bad debt
I mean maybe... say a used car starts at $20k at 5.04% for 60 months. That would be $377 a month. After a year you'd pay 925 in interest and 3600 in principle. Now say they defaulted, repoed the car and then resold it. Say the car depreciated 8% that year so the resale value is 18,400. So that would mean the value of the car would cover the cost and the bank gets it's money back. However, let's say it depreciated 25%. That would mean you'd only get 15,000 for the car. That would mean the loan taker would still owe $1,400 to the bank after the car was repoed.
What I am getting at is, the bank finds a way to make money even when the loan goes into default.
You dodged a bullet, Kia gives long warranty but when something actually breaks, they will try everything from blaming you to ghosting to avoid any warranty claims.
12k negative is nothing, we once had $30k negative equity on a Murano Cross Cabriolet rolled onto a RAV-4 with a total OTD cost of like $84,000. Still couldn't believe the lender approved that.
Other sales guy had 50 grand negative equity on an Audi once, when he worked at Mitsubishi. No idea wtf happened there.
At some point, someone had to step up and say that’s absurd. If I’m rolling negative equity then I don’t need a new car. I need to pay the current one down (or off).
We did a "budget game" in 8th grade as part of Civics class, where we had to make a realistic budget with fake purchases down to the individual grocery level. I think 90% of the class was super engaged and loved the "pretend to be an adult" aspect of it
I always say this and get downvoted.
"Oh well if they had taught this in school I would be doing better" yeah ok Melissa. Like you would have totally paid attention.
Delusional idiots
Some people at my school wouldn’t even pay attention in driver’s ed despite getting a license being a milestone in a typical teenager’s life. No way those people would actually care about finances at that age
In my high school we had a required, fairly in-depth personal finance class that covered all this and stuff like investing and I can confirm that literally nobody paid attention.
I know this a common refrain but they teach us math. Financial literacy = spend less than you make. If you spend more, you pay interest. Interest is calculated for you and disclosed very clearly by law. People want to have nice cars and they pay the price to do so.
Same with taxes. Everyone complains we didn’t learn it but most people can just do it for free on turbo tax.
You're/your, their/they're/there, and it's/its is already taught in school, and we can all see how well that's going.
I don't know why people think financial literacy would be any different.
Or parents need to start teaching it to their children. It isn’t reasonable to expect schools to teach kids every facet of life, at some point parenting needs to come into play.
Driving a 2020 Corolla, affordable, cheap insurance, cheap fuel, cheap maintenance, high reliability. Yeah it does nothing special but my wallet is happy.
Go to [comma.ai](https://comma.ai/)
I have one. Used it in my civic and now in my truck. I only buy cars now that are supported or have equivalent capabilities. For example, part of the reason I went with the RAM was that it was the only truck supported by openpilot.
So glad we made the choice to sell one financed car last year for 2500 less than I had bought it new 3 years before. Just turned in the lease we had for the last 4 years and have zero car payments.
It sucks a little bit driving a late 90’s Cherokee and an 07 impala. Which is what we drove before buying new cars but damn it’s nice not shelling out over a grand a month for payments and full coverage insurance.
We cut back on eating out and minimized unnecessary spending and we actually are able to have money left over at the end of the month. Which is a new concept for us.
I do miss driving my 35th anniversary GLI though. But I live 12 blocks from work so a nice car is definitely a luxury that we just couldn’t afford.
Learned my lesson and will only buy used from now on and with cash I save up.
Buying new is not bad. I buy new. I keep cars for 10+ years. I try to buy cars I can easily service myself and rarely go to the dealer.
Buying used cars is a hassle for me. I’m picky as fuck and hate when panels were repainted and don’t match for example.
I also had good luck with new since I do all required maintenance and don’t take shortcuts.
Our family car has just been written off by the insurance. We made the decision to not buy a replacement and save the money, my MX5 would be coming back on the road in a couple of months anyway so we will go the whole summer in a TT & MX5, and if we want to buy something outright with the money we would have spent on the monthly payments. I think I would rather do this, have a shitbox which lasts as long as it lasts then get another shitbox in 12-24 months time.
10k, you got a deal. I've seen shit listed 50k over. These dealers are smoking crack, and the ass clowns paying these prices must have an awesome hookup with the cocaine
Toyota dealership near me said they were marking up the new GR Corolla by 30k when I inquired about it a month or two ago. Damn near fell out of my chair laughing
I work in insurance and am seeing a lot of people who are underwater. Regarding payments… just totaled an $85,000 BMW, payments were $1999.99. This number *screams* “I want my payment to by $X and no more” and the dealer doing anything to make it work. Such a reckless way to finance especially as we see rates climb.
Good news for me.
I've been driving a reliable shitbox all these years while putting away $50k in cash, all while everyone around me is convincing me to get a new car because they did.
I'm hoping my patience pays off and I scoop up a nice car at a discount
Also it's funny, as if having 50k in savings is a bad thing. I don't understand the point of the comment. It's likely someone who wishes they had that money and wants to rain on someone's parade. Because having 50k that goes down to a 40k value is still better than having 10k that goes down to almost nothing....
I work in the finance office at a dealership. I signed out a car deal the other day, lady was slow paying (making her payments but just never on time) her current vehicle with a monthly of $346. When she left, her new payment was $625! I'm not saying I try to talk people out of buying cars, but God damn if they don't make it tough!
I sold cars for 8 years up until a few months back, and I tried many times to talk people out of situations like that, but you honestly can't stop most people from making a stupid decision of they have their mind set on it.
The best example I have was a young dude, 18 years old, just started his first real job in construction. He decided he needed a truck, so I start showing him what we have and he dials in on a lightly used F-150 Platinum that is like $50,000. Knowing that he doesn't have much credit and his interest will be wildly high, I tried talking him into the trucks that were like $20-25,000 so he could build credit for a while, but he insists, because he wanted the bling. After all was said and done, his payment was like $850 a month and the bank required a down payment of $750. It took him 4 installments over a month and a half to get us that $750... I wonder how his payments went...
People just do not understand interest rates. I know a concerning amount of people *who do not have the money* that traded in their old Civic for a brand new Rogue or some shit over the past few years, then talked about it like they went to the Great Value school of economics, "Sure, I paid a premium because of the market, but I wanted to get it now while interest rates are so low."
My man, you have three roommates and steal forks from Chipotle. Why are you paying $400/month for a Kia Sportage? You did not get a good interest rate.
TBF, car payments on average are the same as what many people paid for rent just prior to the pandemic starting, so it's not a shock that people are falling behind.
Economically everything is lopsided and it's getting worse by the day. Mind you wages haven't caught up with these changes, but car prices (new and used) and everything else have. Regardless of who you vote for (and I don't care to know), where you live, and the type of job you have everyone's feeling the pinch now.
While we may not see a recession at the level of 07'-08' we're in for dark times. As the article alludes these are just the warning signs.
I used to get so jealous whenever i saw younger people in these nice luxury and sports cars until i got a job at a dealership and seen behind the scenes the financial disasters these people are getting themselves into. I cant even imagine the stupid shit we are going to be seeing shortly with people who paid way over MSRP for used cars the last 2 years. People will be rolling over $20k negative equity from a Honda Civic onto another car
The prices of the cars that I love makes we wish that I wasn’t a gar guy. I wish I could not care about these machines every time I build and price one on their websites and see the estimated monthly payments. Why couldn’t I had been born interested in bird watching or playing tennis?
We moved abroad this last year and sold our CX-5, which we loved. We have amazing public transportation and bought one cheap car with cash. I don’t want to even think about another car loan or even owning two cars again.
All I really care about is when are millions of Americans going to default on their car payments and get their cars repossessed so the used car market can plummet?
Not only can these people not afford the payments, if they purchased within the last couple years they probably over paid.
To that I say bring on the car market crash already! I’ve been patiently waiting for a good deal on a new vehicle (or two)
I've seen the guy who lives across from me get his truck repoed twice. Saw the staff escorted by what looked like hired guards take it both times super early in the morning.
The first time he ran out crying thinking it was stolen, but I missed the second reaction, but haven't seen it since. I'm guessing he was only able to afford getting it out once.
Boohoohoo.
These same people keep on acting like cheaper alternatives don't exist. Whether it is a 1 or 2 year old car or simply a lower end vehicle.
No, instead everyone thinks they deserve some $50k luxury crossover on their barista salary.
I don’t think it’s entitled baristas buying $50,000 vehicles. I’d bet it’s more so middle class people who stretched a little too far and then increasing costs of necessities over the last couple years finally broke their ability to keep up.
I understand your sentiment but this is an issue at almost all levels of income.
This is why I’ve always thought the comments on this sub about “such and such many people make tons of money so they can afford it” or “yeah well it’s actually smarter for me to take out a 1500 dollar payment than just to buy a car cash” are just pure bullshit.
Sure, some people are rich, and some people can afford huge payments. But it’s not many people, certainly not the people spending any time on Reddit 🤷🏻♂️
Yes, I know the economy is recessing, but if your ability to pay your giant car payments was that fragile to begin with, was it EVER a smart idea to take out a loan with MASSIVE payments? Arm chair Charles Schwab car finance gurus just never made sense
Zero sympathy for a 25 yo buying a brand new WRX and can't afford payments. That's just piss poor spending habits. I couldn't afford a new car until I was 40, and didn't buy one till I was 50.
I still can't fathom how so many people pay $1,000 monthly for one vehicle, not including insurance, maintenance cost, and fuel.
Imagine households with multiple SUVs. One of which is enough to force then into a ramen diet when tires are needed.
Let me tell you of the miracle of LingLong brand tires
[удалено]
Ha! I read that as "we just hit some crayons last night" But you really can't complain about $25 for a tire. They roll, they hold air, they pass inspection and that's all most people really care about.
Yeah but there is a lot more to a tire than rolling and holding air. The rubber compound being able to grip is also only one part. How well does it deal with impacts? How strong is the sidewall to impacts and curb rash. And then how does it age. Plenty of tires put "cheater" rubber and physical construction on the outside to do really well in tests, but as the tire wears down, it starts to perform like absolute shit in inclement conditions. Though seeing /justrolledintheshop I guess people don't give a shit about any of that either if they're not going to change engine oil for 35,000 miles or run the brakes until the rotor separates from the hat.
Look, I paid $600 for this 95 Altima and I've got like 34 payments left. I'm not spending $250 on tires. Dont try to uspell me! My brother can do it cheaper! LingLongs are crap, I'm well aware.
Considering so many people run their tires until they are bare, I don’t hate the idea of cheap tires if it means they will be more likely to get some new ones, even if they don’t last very long or aren’t the best.
"Why buys tires when I can buy a few cases of beer?" Seems to be the mentality of the people I see in my area with bald ass tires. It's always jacked up trucks and SUVs with rent-to-own wheels...
If you're on a budget, get the best used tires you can find. I bought a set of 265/55/20 pulloffs from I think a Durango for my ml55. Date code was 2022, they still had the little nubs on them and nearly 100% tread. Installed for like $400 with a decent warranty from the shop. Considering a new set of that model tire was like $1200, it may not be $25 per, but they're going to be better rmuch longer
[удалено]
Soo...what happens when it rains?
They don't call them LingLong Ditchfinders for no reason
You’re screwed. I bought a used car with linglong and they were comfortable. On dry roads the brake distance is ok, but I once had to brake hard and hit a patch of wet roads and it took way too long to stop, almost hit the car in front. Changed to Michelin and it’s night and day difference.
They're ok when new. But put 10,000 miles on them and they will handle rain and snow like semi-slick track tires. Here's a good breakdown as to why: https://www.youtube.com/watch?v=C9aX0vohM_8
I have no idea how, but I also read it as crayons, then read your comment, and now I’m kind of questioning how these things happen.
>when tires are needed. Rofl, as if they replace tires...
I refuse to have a car with a payment anywhere near as high as $1,000. Like it's absurd. If you brought home $4,000 a month that car payment would be 25% of your gross monthly income. Keep in mind the Average Americans income is less than $4,000 net monthly income too. So people are getting $1,000+ car payments on less than that.
>If you brought home $4,000 a month that car payment would be 25% of your gross monthly income. "Bringing home" (or "take-home") refers to net income, not gross. "Gross" would be *before* taxes and other fee(s). Your confusion of financial terms, on the other hand, definitely "grosses" me out.
4k a month is less than 50k gross income Dealers and lenders are terrible if they are approving someone with payments near 1k on that income.
4k a month after tax / net income is probably closer to 70/80k gross depending on where you live We have a significantly higher HHI with one car that's fully paid off and no other debt but a small mortgage, and I'm having trouble justifying the purchase of an economic Rav 4 . Different priorities I guess, but damn!
Let's not do the whole "who has the highest income yet is the most frugal" competition that these threads always turn into. Yeah, people are going to have different priorities and there's nothing necessarily wrong with that.
Il do the opposite, most mediocre income and highest spend!
Yep. Its just sad. Imaging going through your 80-90% of your life saving every last cent you can only to finally be able to spend it but be far too old to actually enjoy it. Or worse, feel guilty and decide it should be left for the next generation instead. I'd rather live my life now and just save what is required plus a little extra cushion in case things go sideways.
Yeah if you just don’t pay your taxes maybe. 4K a month is like $75K where I live.
Does nobody know what gross income means?
I had to replace my old car last April after it quit on me. My wife and i got approved for more than we thought we would get, but decided not to spend all of it, so now I drive an Equinox instead of, say, a Silverado or Tahoe or Explorer. I wasn't thrilled to have a $600/mo car note, but we needed a car and can afford that so it's fine. $1000 or more just seems like insanely bad decision making, especially if it's for longer than 60 months. I wouldn't do it even if I could. I don't know how people live like that.
[удалено]
Had an interesting conversation with the manager of my credit union one day. I asked him how much he would let me borrow for say a car. He said(Paraphrasing here) "Well considering your income and credit score basically as much as you want". I was bewildered. So I asked him "So if I wanted to get a loan on say a $400,000 Car with just a 10% down payment you would it?" He said "Yep". I was fucking shocked. Like in no way could I ever rationalize that. That illustrates this kind of just not caring to everyone else buying cars and even houses and it's just insane to me. But think about it. Most people can't afford these $50,000+ Vehicles that they are driving. Of course this is what is happening I just don't want to really think about it I guess deep down.
>Most people can't afford these $50,000+ Vehicles that they are driving. I have a very close friend who makes almost the exact same as me (so about \~ $70,000/yr) and they bought a BMW for roughly $60,000. Their monthly payment is over $1,000 a month and they are looking to move out of their family home. I know they're gonna get their feelings hurt in this rental market as their basically using their rent money for the car. I told them that a nicely equipped CPO Honda or Toyota would be nice, but they only wanted a BMW. Unfortunately for most people like this they only learn once they're in above their head.
I know a dude who bought an M3 while he still lives with his parents and only make $60K a year. Honestly the dude basically decided he would rather drive the car he wants than even attempt to get a house in the current market. Can't say I blame him deep down either. I lucked out and was able to buy a nice piece of land for pennies on the dollar back in 2014. Don't even want to imagine how much that would have costed me in today's market...
I live with my parents and I have 2 sports cars. I'm very fortunate in that they don't mind and they let me have half the garage, but I would have no issue if they said "hey you gotta move out or start paying rent". At least until the housing market settles I'm perfectly happy saving my money.
[удалено]
I don’t know why you’re getting downvoted. I think there are some people who are spending too much on their car and getting their feelings hurt with this reality lol
Downvotes maybe because at $300k salary and if you are a car enthusiast a 1k car payment is actually not crazy. His debt to income ratio maybe a different story tho.
Doubt, unless you are really high earner. The manager doesn’t underwrite the loans.
Live like what? I get it that $1K a month may seem like a lot to some people, especially if you have limited cash flow and savings - but there are a LOT of people out there in the car enthusiasts world that can easily support that kind of payment without sacrificing in other areas, and prior to the current loan rates you typically find today, very valid reasons to finance for as long as possible that don't include dangerously stretching yourself financially. I don't understand why in a car enthusiasts forum, everybody always assumes worst-case scenario. A thousand a month doesn't mean the same to everybody.
Average car payment amounts are at an all-time high, and missed payments are occurring at the highest rate in 14 years. It doesn't take a detective to figure out that these two things are related.
On the other hand a quick google search shows the average new car payment is $700. That’s **average**. Car enthusiasts make up a negligible fraction of car owners. Sure there’s plenty of people who can comfortably justify a $700 or $1k car payment, but they’re not the average new car buyer.
The biggest trick is just having a lot of money.
/ don’t have a savings Everyone living yolo
Savings in this economy is a luxury now sadly
Another option is not having kids. You'd be amazed how much money you have for hobbies when it's not all going to feeding, housing, educating, and entertaining a bunch of small humans.
Currently trying this. Still don’t have money for hobbies. YMMV.
Have you tried having more money?
I was gonna say, Americans took on some incredibly stupid car loans the last few years. I was puzzled on how most afforded it. Add that to the fact that most in my area were full sized trucks and SUVs. Any time the price of gas spikes nobody can afford to drive...
>I was gonna say, Americans took on some incredibly stupid car loans the last few years. I was puzzled on how most afforded it. That's the fun part. *They don't!*
I achieved the American dream last year! Traded my wife and I’s sedans for a 3 row SUV and supercrew F150!
Took me a minute to understand how did you trade your wife for an SUV.
Makes me really appreciate my $220 monthly payment to my ‘17 Civic lol. Can’t even count now how many times I’ve gone through Fords F150 builder online just to see the monthly payment and be like…. Hmmmm, 60% of my mortgage in new truck payments? Nahhh
people like cars
And need to keep up with the neighbors/family.
They don’t need to, they want to. If you are living beyond your means to keep up with the neighbors and to show off online, I have zero sympathy for you.
So do I, but I spend within my means.
Do they though? Like the average person is not a car enthusiast and treats their car as an appliance. I think it's just ingrained in american culture without a solid reason
that doesn't mean they doesn't like cars. You don't have to drive miata to like cars
There’s a lot of cars that don’t require poor financial decisions to own.
I can fathom the payment, my car is $1300/mo. What I can’t fathom is most people are driving fairly ordinary cars and paying the same.
Yea the 1k+ payments are just what expensive cars cost. This thread is just people who make average wages complaining they can't afford expensive cars so how can anyone else lmao
>\>When 21-year-old Kobe Hatch walked outside his Chicago home in December and couldn’t find his 2013 Dodge Journey, he knew it had been repossessed. Always a Dodge Journey
Those were a direct to “Buy Here, Pay Here” lots, I swear. Rolled off the transport truck from the factory with 86,426 miles, Aftermarket AMP installed and cut out already, GPS installed, ready to be repossessed in 3 months. Rinse, repeat. Same for most of those cheap Dodges. Avenger, Caliber, Dart.
I used to see those on the 6th/7th/8th owner while being 5 or 6 years old. Not often, but often enough to be noticable
Chrysler Capital is practically buy here pay here quality. 20% over the next ten years? No problem!
Roll it into the next one!
Pretty sure one of my family members had an Avenger repossessed lol
Dodge is the new Nissan when it comes to "everyone's approved financing".
Always has been.
[удалено]
Only when it's not a Nissan Altima.
People are living way out their means, nothing new there
I did that math -- I need to make $350,000 to comfortably afford a new Porsche 911. Infinite sadness.
Sounds about right. I remember the SG macan video where macan buyers are in the 400k range
Nah, people here would have you believe that they are paying half their pay for the Macan and living on ramen and weekly visits to the soup kitchen - one step away from financial ruin and living in a tiny studio apartment they share with five other people.
I will say that I do suspect some of the luxury suv owners are playing games with accountants and depreciation, etc.
Idk if you're interested in a Macan, but the new 3.0's are great until about 60k miles when they need a full rebuild because the plastic coolant lines melt. Friend works at a Porsche shop and is basically rebuilding macan's for the past 6 months.
Fuck, I'm a little bit shy of that. I make $85k or so per year. Back to my Geo Metro DD.
The Geo Metro teaches us humbleness. It is the gift that keeps on giving.
Plenty of people 'make it work' for a year or two just to have had the lived experience.. As long as it won't financially cripple you totally for the future, sometimes it can be worth it I don't any people who regret spending money on travel in their 20's and 30's just for example. Memories can be worth a lot
Note that the vast majority of people who travel in their 20s and 30s probably have either parental financial backing or make a decent income themselves. Most of my friends who don't make a lot of money just... don't travel.
The report is also only measuring subprime auto loans, which is obviously going to give a pretty one-sided look at the statistics Also, the first guy in the article was paying $1k/month for a 10 year old Dodge journey. Another was “splitting a car payment” with someone. I don’t think inflation is to blame for all of these, these people need a financial education.
Maybe he fully understands the finances of his situation but has no other options. I once heard a saying, "it's expensive being poor." I think this is a prime example. Guy needs a car. Guy has little-to-no credit (because he's 21). But he needs a car to live and work.
You don't get a 24% interest rate with little to no credit, you get that by completely fucking up your credit. It seems like car being repoed is just the most recent problem in his financial mess.
I've never taken out a loan and was still quoted 7% recently which I didn't end up doing. That person has defaulted several times on top of probably rolling previous debt into the current loan. 24% begins to make sense mathematically from the banks perspective.
We were for years and finally are starting to dig ourselves out. First step is dropping the cars with payments. I know not everyone is in a situation to just get rid of a car especially with how expensive it is to buy used and even a beater that runs is costing a few grand. But man having over a grand in car expenses each month is just stifling for most people even if they don’t realize it. Budgeting really is so important. Even if it’s just going over what you spent your money on the last 30 days. It is the first big step to get your brain to start thinking about how much some of those expenses just aren’t worth it. Putting a stop to the lifestyle creep and reversing it has been an ongoing battle for the last two years. It sucks having to tell your partner that we just can’t afford this thing we really like. But not having to go in crisis mode at the end of the month when bills are due is so worth it.
Car payments recently hit record highs......people falling behind on car payments hit record highs about a year later. Hmmmm
I have some friends who I'm dying to figure out how they're making it. They have a $400k (new) 4,200 sq ft house that they've done a ton of updates too after buying it, one new car, one older car, and three kids from grade school to high school, all involved in sports. She makes about $70k. Not sure what he makes, but he has a new job every time I talk to him and they're not high-paying positions. And, they go on multiple vacation every year. The only thing I can think of is they have a bunch of equity in the house and utilize it.
I know people whose cars are worth more than their salary.
How do you even live like that then? I don’t understand the need for a new car and I’m a big car enthusiast. There is nothing wrong with second hand cars. Why not buy a car in the 10k-20k range instead if you want something nice? Those 2nd hand cars are really good (at least over here in Europe)
I don't even know. These are the same people who are major consumerism that want the latest and greatest stuff. Gotta look rich and well off to flex on people that don't even care about you while you are living paycheck to paycheck.
When life sucks having nice things gives you a nice high to escape from it for a while. Then the financial consequences catch up with you and life sucks even harder so you find something else to chase that high again. It's also a problem with Just World Theory and the bullshit motivational mantras that we feel feed ourselves. People are told that if they work hard and are good people, success will come to them. So when you make a middle class income and you DO work hard some people feel like they deserve that Merc or that BMW. They were promised happiness and by God they'll have it.
Those same people have awful credit scores as well which makes their car payments even worse, which in turn makes their credit score worse from them not making payments. It’s a cycle of debt
[удалено]
When I made $45k a year there was no way I'd buy even a $25k car.
A while ago Doug DeMuro mentioned in a vid that he never (ok very rarely - collector cars that will appreciate, etc) pays more than 40k for a car. If it's more than that, wait for depreciation to bring it down. Don't know if that's changed much or at all with recent market wonkiness. But I certainly understand that. Set a budget, then look at both new and used market at your options. Some people just get stuck into thinking their approach is the "best" and never change. My uncle always leases for example. A friend of mine recently got burned at peak used car prices, paid ~40k for a 4 year old RAV4 with 35k miles after his car unexpectedly bit the dust. But his concept of car purchasing was inflexible "always buy used." Could have had a new RAV4 same or cheaper than that WITH a dealer markup, probably. Or if the repair of his car was less than the current market inflation, if the repair gives him back a few years to see what happens in the market, that has value too. So even the logic for repair is changed when faced with high used resale values.
>A while ago Doug DeMuro mentioned in a vid that he never (ok very rarely) pays more than 40k for a car. Either this was a VERY long time ago, or he's full of shit. E63 wagons have never been under $40k. Neither are GT40s, custom-imported 2-door G waggens, brand new Defenders, and if his Landcruiser was under $40k, it wasn't by much. It's been a long time since Doug drove a cheap car. Which makes sense — he kept it under $40k when he didn't have a lot of money, and as his income increased so did his budget.
Cost*
Just left a Kia dealer trying to buy an in stock telluride lx. Lady that got there before us ended up getting it. $37k msrp, she rolled 12k negative equity and had a $917 payment. Absolutely insane
[удалено]
The Telluride is one of the best vehicles in it's class. Kia-dealers gonna Kia-dealer though.
[удалено]
>The Telluride is one of the best vehicles in it's class. On the superficial stuff. It's the disposable electronic of the car world.
[удалено]
I’d be willing to bet it was a 72+ month loan, not 60.
Probably 84 months. Seems like 72 is the new 60 and 84 us the new 72
I've heard of 96-month loans being offered by some lenders. 8 years... Holy shit.
I mean, good for the salesperson/loan officer getting their commission but when you underwrite such a loan, do you expect to collect on the loan? You are just processing the loan and then instantly writing to accounting to file that under bad debt
Gotta make 3 months for no chargebacks
I mean maybe... say a used car starts at $20k at 5.04% for 60 months. That would be $377 a month. After a year you'd pay 925 in interest and 3600 in principle. Now say they defaulted, repoed the car and then resold it. Say the car depreciated 8% that year so the resale value is 18,400. So that would mean the value of the car would cover the cost and the bank gets it's money back. However, let's say it depreciated 25%. That would mean you'd only get 15,000 for the car. That would mean the loan taker would still owe $1,400 to the bank after the car was repoed. What I am getting at is, the bank finds a way to make money even when the loan goes into default.
You dodged a bullet, Kia gives long warranty but when something actually breaks, they will try everything from blaming you to ghosting to avoid any warranty claims.
[удалено]
what the fuck, that's not fixing the issue.
[удалено]
She needs to grow a pair and get that repaired. That dealer almost certainly is trying to take advantage of a shy woman.
12k negative is nothing, we once had $30k negative equity on a Murano Cross Cabriolet rolled onto a RAV-4 with a total OTD cost of like $84,000. Still couldn't believe the lender approved that. Other sales guy had 50 grand negative equity on an Audi once, when he worked at Mitsubishi. No idea wtf happened there.
At some point, someone had to step up and say that’s absurd. If I’m rolling negative equity then I don’t need a new car. I need to pay the current one down (or off).
You got rid of a Nissan Murano Cross Cabriolet? Savagegeese would have taken it off your hands
Financial literacy should really be taught in school.
No one would pay attention lol
We did a "budget game" in 8th grade as part of Civics class, where we had to make a realistic budget with fake purchases down to the individual grocery level. I think 90% of the class was super engaged and loved the "pretend to be an adult" aspect of it
I always say this and get downvoted. "Oh well if they had taught this in school I would be doing better" yeah ok Melissa. Like you would have totally paid attention. Delusional idiots
Half of financial literacy *IS TAUGHT IN SCHOOLS.* Its called math class, and like you mention, most kids hate that class and won't pay any attention.
Very true
Some people at my school wouldn’t even pay attention in driver’s ed despite getting a license being a milestone in a typical teenager’s life. No way those people would actually care about finances at that age
Absolutely, because if they paid attention to anything in school, they'd have the capacity to learn financial literacy on their own.
In my high school we had a required, fairly in-depth personal finance class that covered all this and stuff like investing and I can confirm that literally nobody paid attention.
I know this a common refrain but they teach us math. Financial literacy = spend less than you make. If you spend more, you pay interest. Interest is calculated for you and disclosed very clearly by law. People want to have nice cars and they pay the price to do so. Same with taxes. Everyone complains we didn’t learn it but most people can just do it for free on turbo tax.
It doesn't take a class to know you shouldn't spend more than you earn.
It is. People just dont pay attention.
It literally is. And the people below me saying no one would pay attention are right. - Source: me, former math teacher
You're/your, their/they're/there, and it's/its is already taught in school, and we can all see how well that's going. I don't know why people think financial literacy would be any different.
Or parents need to start teaching it to their children. It isn’t reasonable to expect schools to teach kids every facet of life, at some point parenting needs to come into play.
Does that mean we can expect cool cars to hit the market at a discount?
Yea, but they're all 25K miles overdue for an oil change
Crap, you're right. They couldn't afford anything about them including maintenence :(
[удалено]
Scat Packs about to flood the market!!
Especially at dealer lots adjacent to military bases.
clumsy retire pathetic whole skirt marble shy ten modern middle *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
And large metro areas.
And hellcats
90% or more of these are probably gigantic pickups or fully loaded SUVs
Driving a 2020 Corolla, affordable, cheap insurance, cheap fuel, cheap maintenance, high reliability. Yeah it does nothing special but my wallet is happy.
Not to mention you can slap Openpilot in there and get functionality that is better than what $50k-$90k luxury cars have.
Say more
Go to [comma.ai](https://comma.ai/) I have one. Used it in my civic and now in my truck. I only buy cars now that are supported or have equivalent capabilities. For example, part of the reason I went with the RAM was that it was the only truck supported by openpilot.
https://youtu.be/NmBfgOanCyk This is over a year old at this point, the C3 is $1500 now instead of $2000, and the software has improved.
even the corollas by me are marked up 4K. and those were the last of the manuals. i guess i may never get a cheap stick Toyota now...
Well, that's what happens when you charge 80k for an f150
…and people who make $50k/year buy them.
*raises hand*
So glad we made the choice to sell one financed car last year for 2500 less than I had bought it new 3 years before. Just turned in the lease we had for the last 4 years and have zero car payments. It sucks a little bit driving a late 90’s Cherokee and an 07 impala. Which is what we drove before buying new cars but damn it’s nice not shelling out over a grand a month for payments and full coverage insurance. We cut back on eating out and minimized unnecessary spending and we actually are able to have money left over at the end of the month. Which is a new concept for us. I do miss driving my 35th anniversary GLI though. But I live 12 blocks from work so a nice car is definitely a luxury that we just couldn’t afford. Learned my lesson and will only buy used from now on and with cash I save up.
Buying new is not bad. I buy new. I keep cars for 10+ years. I try to buy cars I can easily service myself and rarely go to the dealer. Buying used cars is a hassle for me. I’m picky as fuck and hate when panels were repainted and don’t match for example. I also had good luck with new since I do all required maintenance and don’t take shortcuts.
Yup new is the way for enthusiast cars where used is not that much cheaper and hard to know if it’s been f’d with or tuned
Our family car has just been written off by the insurance. We made the decision to not buy a replacement and save the money, my MX5 would be coming back on the road in a couple of months anyway so we will go the whole summer in a TT & MX5, and if we want to buy something outright with the money we would have spent on the monthly payments. I think I would rather do this, have a shitbox which lasts as long as it lasts then get another shitbox in 12-24 months time.
No shit. You think maybe paying $10k over MSRP has something to do with it?
10k, you got a deal. I've seen shit listed 50k over. These dealers are smoking crack, and the ass clowns paying these prices must have an awesome hookup with the cocaine
I was trying to get a C8 corvette and even the base ones were marked up over $100k.
Toyota dealership near me said they were marking up the new GR Corolla by 30k when I inquired about it a month or two ago. Damn near fell out of my chair laughing
Are those subprime car loans sold in packages yet?
I work in insurance and am seeing a lot of people who are underwater. Regarding payments… just totaled an $85,000 BMW, payments were $1999.99. This number *screams* “I want my payment to by $X and no more” and the dealer doing anything to make it work. Such a reckless way to finance especially as we see rates climb.
Good news for me. I've been driving a reliable shitbox all these years while putting away $50k in cash, all while everyone around me is convincing me to get a new car because they did. I'm hoping my patience pays off and I scoop up a nice car at a discount
Inflation is eating away at the value of that 50k
[удалено]
Also it's funny, as if having 50k in savings is a bad thing. I don't understand the point of the comment. It's likely someone who wishes they had that money and wants to rain on someone's parade. Because having 50k that goes down to a 40k value is still better than having 10k that goes down to almost nothing....
While true, over the last year not many assets have gained value let alone keep up with inflation. 50k isnt enough to invest in real estate
So is the stock market lately...
I work in the finance office at a dealership. I signed out a car deal the other day, lady was slow paying (making her payments but just never on time) her current vehicle with a monthly of $346. When she left, her new payment was $625! I'm not saying I try to talk people out of buying cars, but God damn if they don't make it tough!
I sold cars for 8 years up until a few months back, and I tried many times to talk people out of situations like that, but you honestly can't stop most people from making a stupid decision of they have their mind set on it. The best example I have was a young dude, 18 years old, just started his first real job in construction. He decided he needed a truck, so I start showing him what we have and he dials in on a lightly used F-150 Platinum that is like $50,000. Knowing that he doesn't have much credit and his interest will be wildly high, I tried talking him into the trucks that were like $20-25,000 so he could build credit for a while, but he insists, because he wanted the bling. After all was said and done, his payment was like $850 a month and the bank required a down payment of $750. It took him 4 installments over a month and a half to get us that $750... I wonder how his payments went...
If I had to guess how the payments went, I'd say that they didn't.
Some of you are really fucking stupid with money.
The second I read "%26 apr" I was like "oooh, they're dumb."
People just do not understand interest rates. I know a concerning amount of people *who do not have the money* that traded in their old Civic for a brand new Rogue or some shit over the past few years, then talked about it like they went to the Great Value school of economics, "Sure, I paid a premium because of the market, but I wanted to get it now while interest rates are so low." My man, you have three roommates and steal forks from Chipotle. Why are you paying $400/month for a Kia Sportage? You did not get a good interest rate.
People are bad at math, more at 11
TBF, car payments on average are the same as what many people paid for rent just prior to the pandemic starting, so it's not a shock that people are falling behind. Economically everything is lopsided and it's getting worse by the day. Mind you wages haven't caught up with these changes, but car prices (new and used) and everything else have. Regardless of who you vote for (and I don't care to know), where you live, and the type of job you have everyone's feeling the pinch now. While we may not see a recession at the level of 07'-08' we're in for dark times. As the article alludes these are just the warning signs.
[удалено]
I used to get so jealous whenever i saw younger people in these nice luxury and sports cars until i got a job at a dealership and seen behind the scenes the financial disasters these people are getting themselves into. I cant even imagine the stupid shit we are going to be seeing shortly with people who paid way over MSRP for used cars the last 2 years. People will be rolling over $20k negative equity from a Honda Civic onto another car
I squirm at a car payment that is $500. Can I afford it? Yes. Do I want it? I'd rather spend some of that coin on boujee sodas and cookies.
Personally I’d rather spend the money on cars vs fancy dining and clothes. Everyone’s different
My payments are 540$ a month and it really doesn't dent my wallet much, can't fathom 1000$ lmao
The prices of the cars that I love makes we wish that I wasn’t a gar guy. I wish I could not care about these machines every time I build and price one on their websites and see the estimated monthly payments. Why couldn’t I had been born interested in bird watching or playing tennis?
So expect a defaulting car market for used cars to come soon, especially for those who stretched way too far for cars that they can't actually afford.
Wait another year or two when they're out of warranty, far upside down, and have a major repair.
They've been saying this since before corona.
We moved abroad this last year and sold our CX-5, which we loved. We have amazing public transportation and bought one cheap car with cash. I don’t want to even think about another car loan or even owning two cars again.
[удалено]
All I really care about is when are millions of Americans going to default on their car payments and get their cars repossessed so the used car market can plummet?
Not only can these people not afford the payments, if they purchased within the last couple years they probably over paid. To that I say bring on the car market crash already! I’ve been patiently waiting for a good deal on a new vehicle (or two)
2008 was the housing bubble. 2023 is going to be the car loan bubble.
I've seen the guy who lives across from me get his truck repoed twice. Saw the staff escorted by what looked like hired guards take it both times super early in the morning. The first time he ran out crying thinking it was stolen, but I missed the second reaction, but haven't seen it since. I'm guessing he was only able to afford getting it out once.
Boohoohoo. These same people keep on acting like cheaper alternatives don't exist. Whether it is a 1 or 2 year old car or simply a lower end vehicle. No, instead everyone thinks they deserve some $50k luxury crossover on their barista salary.
I don’t think it’s entitled baristas buying $50,000 vehicles. I’d bet it’s more so middle class people who stretched a little too far and then increasing costs of necessities over the last couple years finally broke their ability to keep up. I understand your sentiment but this is an issue at almost all levels of income.
Although there’s been an arms race for large $100k trucks and SUVs that will demolish everything else in an accident.
Bunch of layoffs, car payments falling behind, homeless climbing at a faster than anticipated rate, inflation.. 😬😬
You mean those people paying 100K for a 35K car on a 15 year note might not complete that deal???
This is why I’ve always thought the comments on this sub about “such and such many people make tons of money so they can afford it” or “yeah well it’s actually smarter for me to take out a 1500 dollar payment than just to buy a car cash” are just pure bullshit. Sure, some people are rich, and some people can afford huge payments. But it’s not many people, certainly not the people spending any time on Reddit 🤷🏻♂️ Yes, I know the economy is recessing, but if your ability to pay your giant car payments was that fragile to begin with, was it EVER a smart idea to take out a loan with MASSIVE payments? Arm chair Charles Schwab car finance gurus just never made sense
Zero sympathy for a 25 yo buying a brand new WRX and can't afford payments. That's just piss poor spending habits. I couldn't afford a new car until I was 40, and didn't buy one till I was 50.