4 ms·
In my experience, a majority of new car "purchases" are people barely able to afford them, financing them at an extra $300 - $800 / month. Housing purchases hav
by reducesuffering 3y ago
In my experience, a majority of new car "purchases" are people barely able to afford them, financing them at an extra $300 - $800 / month. Housing purchases have ended up so unreachable in the west coast that a new car is the next big item for a status boost.
- pc86 3y agoNobody is paying $800 extra every month on their car.
- reducesuffering 3y agoYes, there are many people who have leases or financing at $800/mth for just a car, instead of a paid off $5k econo-box. Extra, meaning it's additional on top of their fixed survival expenses.
- pc86 3y agoIs this the fringe r/personalfinance opinion that you should buy some 15 year old car in cash and never ever have any sort of car payment? Having an $800/mo car payment and "paying $800 extra every for a car" are objectively very different things. And implying that you can get any sort of reliable used vehicle for $5k just shows that you haven't done this in 15-20 years or so. I'm not even sure you can get one for $10k now and if I was in the market I'd be budgeting $20-25k at an absolute minimum.
- reducesuffering 3y ago> reliable used vehicle for $5k just shows that you haven't done this in 15-20 years or so I purchased an '07 Prius for $5k just a few years ago. They go for ~$7k now. These cars are low registration cost, very low insurance cost, fuel efficient (45mpg), very low maintenance, and high longevity (I've personally witnessed them hit 550k miles). That is the baseline in which, yes, an $800/mth payment is mostly financially excessive; a luxury. Especially at 6 - 15% car loan interest these days.