Since the vast majority of American car buyers finance them, a lot of them get channeled by salespeople to think in terms of the monthly payment instead of nego

Since the vast majority of American car buyers finance them, a lot of them get channeled by salespeople to think in terms of the monthly payment instead of negotiating on the full price. Also, a lot of people go car-shopping when they think they need a new car right away - current one has an expensive problem or just got wrecked, and can’t step back a bit by deciding to spend a few hundred more on Ubers or a rental for a week or two (this is where even somewhat inconvenient public transit can make a huge difference). And since enough of them have $40k+ SUVs and “crossovers”, those become the norm for middle class families who really would have been just fine with small station wagons (if those were actually available in the US market) The best way to escape this cycle is to only buy the car you can pay for up front (even if you then take a loan because the interest rate appears to be in your favor). Do this enough times, and you’ll be ok with plonking down the cash for a $15-20k carefully-researched, moderately-used vehicle with a warranty, but be horrified by the very thought of that $600+ 5-7 year loan so many of your colleagues accept as normal.