3 ms·

I'm likely out of touch here, but at least for the person mentioned in the article, why does he need a huge SUV? If the crisis hits and you cannot re-pay the bi

by tjomk 6y ago

I'm likely out of touch here, but at least for the person mentioned in the article, why does he need a huge SUV? If the crisis hits and you cannot re-pay the bills, that would be the first thing I'd get rid of. It doesn't look like he needs it for work, and he could just get away with a used Honda Civic or a similar smaller car that doesn't require much gas, expensive insurance, and most importantly monthly loan payments. During the last financial crisis I sold lots of stuff that was dear to my heart but wasn't essential like motorbike, mtb, etc. Is it the cultural gap that I'm not seeing as a European? Or something else?

MandieD 6y ago
If he's like a lot of Americans, he's "upside down" on the truck - as in, he still owes more on the loan than he could realistically sell the truck for. That would leave him still in debt, but now without a vehicle, even if he could be content with a 10 year old Civic or Corolla. The wisdom of having purchased such a large vehicle on credit to begin with is another discussion entirely. Americans are, on average, far more relaxed about owing a lot of money on a vehicle than, say, Germans. I grew up assuming a car payment was just part of adult life; my husband, a German, was raised to believe that borrowing for anything other than property was foolish. I've since come around to his point of view, and am the reasonably content co-owner of a 12 year old Fiesta, though considering our upgrade options as we have a baby on the way. Why a large truck in the first place? A lot of American men, especially in the South (where this guy is), consider small sedans to be unmanly. If they're overweight like most Americans, they also think they're going to sit more comfortably in a larger vehicle. Plus, SUVs and trucks are less expensive in the US than they are over here - for what I'd have to pay for a new Corolla hybrid station wagon (my current coveted car) in Germany, I could get a Toyota Highlander mid-sized SUV in the US, which Toyota doesn't even bother trying to sell here.
- tjomk 6y ago
  Gotcha! Thanks for a thorough explanation

by tjomk 6y ago

MandieD 6y ago

If he's like a lot of Americans, he's "upside down" on the truck - as in, he still owes more on the loan than he could realistically sell the truck for. That would leave him still in debt, but now without a vehicle, even if he could be content with a 10 year old Civic or Corolla. The wisdom of having purchased such a large vehicle on credit to begin with is another discussion entirely. Americans are, on average, far more relaxed about owing a lot of money on a vehicle than, say, Germans. I grew up assuming a car payment was just part of adult life; my husband, a German, was raised to believe that borrowing for anything other than property was foolish. I've since come around to his point of view, and am the reasonably content co-owner of a 12 year old Fiesta, though considering our upgrade options as we have a baby on the way. Why a large truck in the first place? A lot of American men, especially in the South (where this guy is), consider small sedans to be unmanly. If they're overweight like most Americans, they also think they're going to sit more comfortably in a larger vehicle. Plus, SUVs and trucks are less expensive in the US than they are over here - for what I'd have to pay for a new Corolla hybrid station wagon (my current coveted car) in Germany, I could get a Toyota Highlander mid-sized SUV in the US, which Toyota doesn't even bother trying to sell here.

tjomk 6y ago
Gotcha! Thanks for a thorough explanation