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re: How are people affording these vehicles?
Posted on 12/27/17 at 10:47 am to yellowfin
Posted on 12/27/17 at 10:47 am to yellowfin
Trying to save for a house and I have ~30k in student loans outstanding.
Not so much that it's unaffordable, moreso trying to decide if it's the best allocation of our money. Especially when our paid off cars are still running fine.
Not so much that it's unaffordable, moreso trying to decide if it's the best allocation of our money. Especially when our paid off cars are still running fine.
0
Posted on 12/27/17 at 10:48 am to Paul Allen
They may have a bunch of student loan debt or something else but outside that it shouldn't be a problem
Posted on 12/27/17 at 10:51 am to YoungManOldMan
People can't afford it but for some reason by them anyways. There is a Chapter 13 Bankruptcy class being held on the second floor of our building and the parking lot is full of 2014 and newer mid to full size SUVs and 4x4 pick-ups. People are just stupid.
Posted on 12/27/17 at 11:38 am to yellowfin
quote:
They may have a bunch of student loan debt or something else but outside that it shouldn't be a problem
We have 225K in student loan debt combined. $1,587 a month for hers. $560 for mine. When that's all done for in 10 years, we will be balling.
12K in CC Debt combined. We paying off over 2 years. I need the credit bump.
Back taxes due about 300 a month.
Living expenses. We eat out a ton and buy frivolous clothes, trips, etc.
Paying for wedding nicknacks.
With all that BS, we still max my 401k and put away about $3500 a month for house fund/savings.
Leave about 1500 free cash after all bills, groceries, etc. are paid.
I take the bus to work because it's 1.5 miles from our 1600 sqft condo, which we pay an astounding $1100 a month for in downtown Clayton.
We really don't want to give up any luxuries for a ridiculous car note. I'll probably end up buying a beater.
Posted on 12/27/17 at 11:41 am to YoungManOldMan
quote:
12K in CC Debt combined. We paying off over 2 years. I need the credit bump.
Why would you max your 501k when your paying 20% interest on a CC. Pay that shite off dude.
Posted on 12/27/17 at 11:43 am to Mingo Was His NameO
quote:
Why would you max your 501k when your paying 20% interest on a CC. Pay that shite off dude.
I pay 10% and being liquid at the moment is more imperative. We want to keep the 25K in short term savings set aside already rather than dip in it to save $1500 over 2 years.
This post was edited on 12/27/17 at 11:45 am
Posted on 12/27/17 at 11:46 am to YoungManOldMan
quote:
I pay 10% and being liquid at the moment is more imperative. We want to keep the 25K in short term savings set aside already rather than dip in it to save $1500 over 2 years.
Maxing your 401k doesn't keep you anymore liquid unless your willing to pay the penalty and income tax on it. There's pretty much no way it makes more mathematical sense to max your 401k over paying the CC. You could suspend the 401k contributions for less than a year and pay off the CC which would increase your cash flow and do almost zero damage to your total retirement savings.
Posted on 12/27/17 at 11:48 am to Mingo Was His NameO
quote:
Maxing your 401k doesn't keep you anymore liquid unless your willing to pay the penalty and income tax on it
The 25K is not 401K contributions, that's just savings. That's savings in my bank account. We have about 90K combined in 401K. We are 32 and 29. We just started maxing 2 months ago.
Posted on 12/27/17 at 11:52 am to YoungManOldMan
quote:
With all that BS, we still max my 401k and put away about $3500 a month for house fund/savings.
That's what you said. It's dumb to do this when you have high interest rate consumer debt. At minimum, you need to pay off the credit card which if everything you said is true, you could do in three months without touching what you have in savings. You'd be smart to look at the student loans as well, they are usually a pretty high interest rate.
If you're saving as much as you say you are there is zero reason for you to have consumer debt. It's just dumb pay that shite off.
Posted on 12/27/17 at 11:56 am to Mingo Was His NameO
quote:
If you're saving as much as you say you are there is zero reason for you to have consumer debt. It's just dumb pay that shite off.
Because it's low interest? We think placing a priority on building my credit back to where it needs to be, as well as having a nest egg/house fund it more important than saving the interest on 12K, which is scheduled to decrease over 2 years.
You're cutting off your foot despite your face. The debt service I pay is the benefit I have to keeping extra 12K in my pocket for now, when going into a new marriage is most crucial.
Suspending 401K contributions is never the answer to anything. That's bad advice. It lowers my taxable income and builds for later in life.
Posted on 12/27/17 at 11:59 am to YoungManOldMan
quote:Thanks, Union bosses! LINK
These trucks/SUVs are $50-70K.
Posted on 12/27/17 at 12:03 pm to YoungManOldMan
On what planet is 10% considered low interest.
Anything higher than 0% on credit card interest is too high (for consumer goods).
Anything higher than 0% on credit card interest is too high (for consumer goods).
Posted on 12/27/17 at 12:04 pm to YoungManOldMan
quote:
Because it's low interest?
10% is not low interest. If you pay it off that increases your cash flow on what you pay monthly. 0% of the time having consumer debt is a good idea. You can disagree all you want, but there is no reason to save over $5000 a month and have 12k of CC debt. That's dumb and it's not a debate.
Posted on 12/27/17 at 12:14 pm to YoungManOldMan
quote:
We have 225K in student loan debt combined. $1,587 a month for hers. $560 for mine. When that's all done for in 10 years, we will be balling.
12K in CC Debt combined. We paying off over 2 years. I need the credit bump.
Back taxes due about 300 a month.
Living expenses. We eat out a ton and buy frivolous clothes, trips, etc.
Paying for wedding nicknacks.
With all the definite major expenses you have (student loan debt, CC debt, etc) why in the world would you eat out so much and throw money away on clothes and trips?
Posted on 12/27/17 at 12:41 pm to YoungManOldMan
quote:I bought a car in 2009(the car was a 2008 model), 1 year old car. Kept it for 6 or so years.
I don’t have the data but it seems vehicle prices have outpaced wages.
In 2015, I traded it in for basically the same exact car....same make, same model, 1 year old, about the same mileage as the one in 2009.
I paid double in 2015 what I did in 2009. I don't know if that is normal or not as I don't pay attention much to car prices, but I was definitely shocked to see how expensive cars were when I started doing pricing/shopping in 2016.
Posted on 12/27/17 at 12:43 pm to JohnnyKilroy
quote:In what cards?
Holy frick reading this thread is eye opening.
Wife and I make around 180k and we're trying to decide if a 350/month note is in the cards for a new vehicle for me. We don't pay any notes currently. No kids.
People paying 1k+ notes on 100k or less income
I feel you on the $1000 note, definitely. But at $180k and no kids, a $350 note should be a drop in the bucket for you.
Posted on 12/27/17 at 12:48 pm to YoungManOldMan
quote:The 10% CC is low interest?
Because it's low interest?
quote:To each his own, but you mentioned you have over $12k in your savings account now. I know you listed a bunch that are meaningful to you, but as others said, I can't think of any logical reason that you would not pay the entire thing off immediately with money from your savings account.
The debt service I pay is the benefit I have to keeping extra 12K in my pocket for now, when going into a new marriage is most crucial.
From the sound of the rest of your breakdown, you can easily get that amount back into savings in probably 1 year, 6 months even if you made it a priority.
Posted on 12/27/17 at 1:19 pm to shel311
i have a couple of comments, but yes cars are getting crazy expensive. over the holidays, my half bother said they will buy a new 2018 expedition next year. he said the one they are looking at has a msrp of $77K. I told him he was nuts, my wife bought a new middle of the line pilot for HALF of that earlier this year. I've only bought one new vehicle in my life and it turned out to be a huge POS. I typically buy mine 2 years old and let someone else take the initial depreciation. When i bought my last truck the salesman said his payment was well over $1,000 a month on his platinum F150.
Posted on 12/27/17 at 1:28 pm to bayou choupique
quote:
When i bought my last truck the salesman said his payment was well over $1,000 a month on his platinum F150.
That's a mortgage payment.
Posted on 12/27/17 at 1:47 pm to bayou choupique
quote:Yea, prices seem crazy nowadays, but like I mentioned, I just don't pay attention to them much until I have to buy.
i have a couple of comments, but yes cars are getting crazy expensive. over the holidays, my half bother said they will buy a new 2018 expedition next year. he said the one they are looking at has a msrp of $77K. I told him he was nuts, my wife bought a new middle of the line pilot for HALF of that earlier this year. I've only bought one new vehicle in my life and it turned out to be a huge POS. I typically buy mine 2 years old and let someone else take the initial depreciation. When i bought my last truck the salesman said his payment was well over $1,000 a month on his platinum F150.
I do try to look at it as some sort of % of income though. I'm just making up numbers, so don't hold me to them....but someone who has household income of $100k and a $400 note...I wouldn't view that much different than someone with income of $250K and a $1k note....so there are instances where I don't think the $1k note is too all that unreasonable.
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