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Not touchy for me. I am *shocked* at the isize and cost of the cars people buy. Especially people in lower income brackets. They could buy a house with the payments their making on their vehicles.
:

IMO, it's a status thing. You can live in the filthiest, most run down apartment, but if you've got a shiny new SUV, you're "up there".
 

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I am not ususally all that shocked by the stories of debt, but that article kind of got to me. I cannot imagine a family owning two new vehicles both upside down on the payments. Wow.
 

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I haven't read the article yet, but totally believe it. My parents, etc. are HORRIBLE about this. Buy a brand new car and then a year or two later, want another.

I grew up so financially unstable that that lifestyle does not appeal to me. We have two vehicles. One was my truck from when I was in high school (a 94 chevy) and the other is a 98 Camry-- both paid for.

I just can't imagine spending as much money as I see on those car commercials on something like that!
 

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We got ourselves into the situation of being "upside down" in our car loan. Dh's work had been giving the guys car allowances. When they switched to company cars in February, it left us with a $400 a month car payment that we couldn't make and a loan we couldn't afford to get out of. Now dh has taken a second job to pay it down so we can sell the car, but we'll never take out a loan on a vehicle again.
 

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It shocks me!!! DH drives a 1999 ford ranger (paid off) I drive a 2004 impreza that we have 6mo left of payments. We put $8,000 down and our payments are $223 a month I have always paid $235.
I was having a conversation the other day with a friend of mine. Both have 2 kids. Both our husbands work at the same place. Both make about the same amount (give or take $5000 a year depending on overtime). They have one car payment that is $650 a month there other car is paid off. I honestly think I would be sick to my stomach with a car payment over $300 a month.
 

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It makes me sad, really. I have a few friends who are upside-down on car loans and are completely trapped by them. They made bad financial choices, yes, but there is no way for them to improve the situation. I think the loan lengths are really long too, like 7 years, and high interest rates.

We bought two cars in the past year - both of our old cars were paid off and quite old. We paid cash. Other friends bought new cars and took out lengthy loans and bought cars that were 15K-20K more than what we paid.... I just don't get it. I just do not see the need for a 40K car, particularly when you have a huge car payment and such to go with it.....
 

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It's funny. My friend's parents moved to the U.S. when he was finished high school, and they were shocked at the amount of people who seem to get a new car every 3 years.
 

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Quote:

Originally Posted by cappuccinosmom View Post
Not touchy for me. I am *shocked* at the isize and cost of the cars people buy. Especially people in lower income brackets. They could buy a house with the payments their making on their vehicles.
:

IMO, it's a status thing. You can live in the filthiest, most run down apartment, but if you've got a shiny new SUV, you're "up there".
I actually agree with this. At my last gig I was teaching at a career college, folks doing certificate programs for entry level jobs that maybe pay 25K. Yet we had tons of students driving really nice cars, I'm talking Navigators and whatnot
:. Here I was the teacher with a masters degree with a 10 yo Nissan and a 9 yo Chevy Cavalier.. there were times I felt self conscious. Yet these students didn't have money, many were working low wage jobs trying to better themselves but didn't get that owning a costly car was a bad thing. I just didn't get it.

Shay
 

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Quote:

Originally Posted by the_lissa View Post
It's funny. My friend's parents moved to the U.S. when he was finished high school, and they were shocked at the amount of people who seem to get a new car every 3 years.
I do think it's a very USA thing - somehow people in the rest of the world don't "need" a new SUV every two years. Wonder how they manage to survive
:
 

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Wow, I mean I knew this was true, but I was shocked when I saw the actual numbers.

2 years ago DH and I bought a new honda odyssey. I probably should have bought a used one, but a lot of it had to do with wanting to get the newer model that had just come out for improved safety and specific feature reasons. We got a loan (though we could have paid cash) because at the time interest rates were so low, and our money was getting better returns elsewhere. (I probably won't do that again, but I'll leave that discussion for elsewhere)

Anyway, I felt we spent a lot of money on this car but yet if I add up all our payments for the year, its still thousands less than the average. And for our income bracket - its less than half the average. I suppose a lot of them are paying for two cars - we own DH's outright and plan to keep it until its unreliable and too costly to repair and hopefully that won't happen until we have saved up cash for another one.

What I think is really silly about cars is that you pay all this money for a shiny new cars but they get dinged up and scratched and whatnot - this is probably the problem because people want shiny new cars and they aren't shiny after 2 or 3 years.
 

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I've wondered how it is that so many people around here are driving such nice cars. We have a pickup that was paid off about 8 years ago (WOW, I just did the math and didn't realize it'd been that long ago). Imagine how much money we've saved on not making payments for that thing. And We have another car I drive that should be paid off in about a year. It's a great car with about 68,000 mi. so we plan on keeping it for a while. With our family growing we'll have to get something new to replace the junky pickup but we want to be smart about it.

I guess I'm blown away by that article too but it makes sense considering the kinds of cars people drive that I've suspected they can't afford.
 

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I'm right in the middle of buying a car right now. I'm spending about $5000 (Cdn) and plan to make the car last for at least 5 years, but hopefully longer. When a salesman asks if I need financing, I'm so happy to say NO! I'm looking at the same car as one of my sisters - she bought hers brand new, totally financed, and is now 27 living at home because she could never afford proper rent thanks to her car payment. I'm looking at the same car as her, just five years later, for a quarter of what she paid! It's amazing.
 

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This just blows me away. I don't understand the thought process that leads to viewing a new car every few years as a need, especially since cars depreciate so quickly in those first few years, and I don't understand the view that so many in this country seem to have of vehicles as status symbols. It's a car. It gets you from place to place. It does not define you as an individual, your value as a person is not based on how much you paid for your car, and it is not a clear indication of your social status or wealth. The people I know who are financially secure don't throw their money away on new cars every few year, and most people who do are not nearly as secure as they would like others to believe.

DH and I agreed before we got married that we would never borrow money to buy a vehicle. We just don't have the desire to throw money away on a new vehicle, and somehow the idea of paying however many $1000s pretty much kills any desire we might have to buy a new car while the one we have is running well. Our "new" car is a 1995 that we bought 3 years ago and hope to drive for several more years.
 

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DH and I have both agreed that we will never take a loan out on a vehicle again once his motorcycle is paid off. And unless we hit a windfall or find the elusive moneytree, we will not be buying a new vehicle ever. We have a 2001 Malibu we bought in 2005 for $3k under bluebook because it was a theft salvage, and we got it at the junkyard and a 1998 Trans Sport extended version that we traded my truck for outright (a truck that we couldn't afford outright and had only put 3k miles on it in 3 years including two vacations because of gas prices and low mileage) last year.
 

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Quote:

Originally Posted by AGlimmeringHope View Post
DH and I have both agreed that we will never take a loan out on a vehicle again... And unless we hit a windfall or find the elusive moneytree, we will not be buying a new vehicle ever..
Preach it sister. I cannot see us plunking down that kind of payment every month. Even when there is a pmt, putting it on a brand-new car is just anathema to both of us. We've found a great place that buys used at auction; our current car was 5 years old when we bought it (8 now), a nice very comfortable well-appointed thing that was expensive when new and was owned by old folks (who like that kind of luxury). Really, buying the luxury castoffs of old people who like comfort, is the only way to go in a car!
 

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More than purchasing new cars, the one that blows me away is people (individuals, not businesses) LEASING cars because they can get more car for the same monthly payment. Those people are just so self-involved that you can't even talk to them. The consumerism of America is so far out of control that people are clueless! I wish everyone in the US could spend a year in a third-world country (hell, even a growing 1st world country) to just get one tiny idea about how the rest of the world lives. Sometimes I'm scared of raising my dd here.
: [steps down from soap box]
 

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Quote:

Originally Posted by rachiem View Post
The problem with leasing is that there's a mileage cap. You go over the mileage and you have to PAY.
Ummm... that's actually not the problem with leasing. The problem with leasing is that you are paying a premium for a vehicle that is rapidly depreciating and you will not ever own. It's the American attitude that reflects that it doesn't matter if you are increasing your net worth or not... what matters is the monthly payment. If you can afford it monthly, you can afford it, even if you lose money in the end.
 
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