re: How are people affording these vehicles?

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Remember when you could get a steak for 26-30 bucks?

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Boy those were the days.

Most people can't, they are just doing it anyway. Great to see a couple being realistic about finances.

Wife and I make ~$300K combined gross. It may seem high, but is solidly middle class in the part of the country where we live. We drive a VW Golf and a Mitsubishi Outlander. It's the first time in our lives we own new cars and not used ones. Our combined monthly car payments is ~$600, and we had multiple discussions about whether we wanted to spend that much per month on car payments, even though we could easily afford the payments. Heck, we could have just paid all cash for both cars and still been okay. We choose to maximize our investments elsewhere, while some people just have different priorities in life like driving fancy cars. To each their own.

Personal truck
1. Bought a tricked out Chevy Colorado for $19k which was the payoff that was 6 months old at the time. Owner was young and over extended himself working his way through school. Heck the tires and rims on the truck were more than he made in a month. Stero system rocked and he paid for new paint job, and tint windows.

2. My work / personal F150 XLT 4 door 5.0 V8 4x4, leather w heated seats . I have a business and bought it under one of my top vendors fleet program. I paid $32,000 for the truck.

3. My business F150’s I lease under my vendor’s fleet plan. The agreeded price before lease is $26,800 for 4 door, ARE brand cover, 2.7L v6, 35 gallon fuel tank, XLT, decently loaded. I have to stick to one color, one option, and have to take the cover and return it with the cover or I pay a penalty.
Two year lease and anything over 100,000 Miles I get hit with extra per mile charge. Any small ding, spot on carpet, etc they will hit you with big time charges. The lease is $550 a month for 2 yrs. I sell mine to an auction house right before turn in to avoid turn in penalties and pay off the truck.

It seems like a crazy amount of money to spend on cars. But one thing I've learned is that you truly don't know most people's financial situation.

You hear those media reports where like half the country has less than 1,000 in savings? It's because people spend every dime they have.

We have some friends that probably combined make 100K a year. The financed (I only know this because the wife of the friend was "bragging" to my wife) that they bought a 48K truck at 17% over 84 months and a 53K SUV at 15% over 84 months.

But people have different situations. Maybe they inherited some money. Maybe someone bought it for them. Maybe they get paid under the table.

I own my minivan free and clear and it's 12 years old. This summer we bought my wife a one year old Camry and I'm paying 380/month on it over 42 months. I'm pissed every time that amount is auto-drafted - I HATE car payments.

Our money goes to savings, retirement, and vacations. Everyone has their vice.

Oh and the comment on buying a used rental? I'm on my third one. All three I've bought at less than 15K miles. First one lasted to 187K miles, second to 179K miles. The 187K miles was still decent when I traded it in, but was just starting to show a lot of age. 179K one blew an engine gasket and I didn't feel like spending money to fix, otherwise was ok, and I got someone to buy it for 1K.

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Wife and I make ~$300K combined gross. It may seem high, but is solidly middle class

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Nowhere in the US is 300k solidly "middle class"

The wife and I make similar money and our combined 1200 dollar notes make us squirm a bit.

Y'all making me feel better about my car note, Car was 31k, got it down to 27k, traded in my old car for 6 and I owed 3. I pay 360 a month with 5.5%, although my credit at the time was not OT standards

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2. My work / personal F150 XLT 4 door 5.0 V8 4x4, leather w heated seats . I have a business and bought it under one of my top vendors fleet program. I paid $32,000 for the truck.

3. My business F150’s I lease under my vendor’s fleet plan. The agreeded price before lease is $26,800 for 4 door, ARE brand cover, 2.7L v6, 35 gallon fuel tank, XLT, decently loaded. I have to stick to one color, one option, and have to take the cover and return it with the cover or I pay a penalty.
Two year lease and anything over 100,000 Miles I get hit with extra per mile charge. Any small ding, spot on carpet, etc they will hit you with big time charges. The lease is $550 a month for 2 yrs. I sell mine to an auction house right before turn in to avoid turn in penalties and pay off the truck.

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I just have to ask. What the frick does this have to do with anything being discussed in this thread?

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We have some friends that probably combined make 100K a year. The financed (I only know this because the wife of the friend was "bragging" to my wife) that they bought a 48K truck at 17% over 84 months and a 53K SUV at 15% over 84 months.

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I have to laugh at this. My fiancee's sister was telling us about the good deal they got on a rogue. They financed at 16% interest.

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Y'all making me feel better about my car note, Car was 31k, got it down to 27k, traded in my old car for 6 and I owed 3. I pay 360 a month with 5.5%, although my credit at the time was not OT standards

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Well, I think there is a difference in doing what you have to do and having ridiculous luxuries you can't afford.

I just threw so much money away on vehicles in my 20s that it makes me sick thinking about making the same mistake with a depreciating asset.

We are focused now on maxing 457/401ks, paying off debt and saving for a house than having a nice car.

My fiancee had a great point last night after made the thread. I don't drive enough to warrant a new buy. Since I don't know cars, we only invest as much in a used car as you're willing to walk away from.

So we are probably going to look for a 4-7K used car in decent condition. Something I can get 30-40K miles on and that will last me 3-5 years at my driving rate.