re: Americans owe more than ever on their underwater car loans

quote:

---

But you can’t put a Camry on social media with the caption”we did a thing today!” and be cool! ??

---

Bingo!

Conspicuous consumption really started in the 80's, but social media has expanded it beyond bounds ever imaginable. People have to keep us with the Jones' where there are hundreds of thousands of Jones' just a click away.

The manufacturers wouldn't be selling cars at high prices if there weren't buyers in the market paying it. But I don't think many buyers look at the total costs and what that number looks like with interest tacked on. All they care about is their monthly note. If it takes an 84 month loan to get the monthly note in an amount they can pay, that's all that matters.

Last time I bought a car the very first thing the salesman asked me at the negotiating table was "What do you want your monthly note to be?" My response was "Zero. Let's start the negotiations there."

quote:

---

2 cars, $0 monthly payments.

---

1 Truck and 1 mom-van... $0 payments for over 5 years now.

quote:

---

Saw a Camry with a sticker that would result in a total cost over $50K including the TT&L. About the same time a friend bought a 3 year old lease return Camry with low mileage for $25K which now appears to have been a pretty decent deal - half the cost of the new one.

---

You can get a new basic Camry for 31-32k. Lot more than it used to be, but will probably last you 10 years.

quote:

---

Keep waiting for the bubble to burst

---

I don’t think it it’s gonna burst

quote:

---

carrying loans taken out during the pandemic car market frenzy, when prices were at record highs,” Drury said in a statement.

---

How’s this a consumer issue? There were no used cars, people needed cars. What choice did we have? It’s not like you had options.

I don’t know about that. I have a bitch basic car that should be in the budget of pretty much anyone.

I had to get a car in 2022 and it went underwater last year if I believe the random emails I get asking me to sell my car.

It’s something I just accept. For me to not be underwater, I’d have to have been paying 20% over the minimum payment the entire time which feels like a scam to me. But honestly, I plan on driving the thing into the ground so I’m not super concerned

quote:

---

Still driving my 2013! Was paid off in 2015

---

Same!

11 years plus in my F150. 183k miles and it’s been very reliable. Not buying a new truck for at least four or five years if this one lasts that long without giving me any trouble.

Both mine (2008 Tacoma and 2011 Tahoe) are paid off. Garage kept and I do all the work myself so I know it's done right. Excellent shape. 155K and 145K miles. When it comes time I will just drop new engines in them and call it a day. With remanned engines going roughly $5K and and expect another 3-5k in labor, that's a no-brainer.

Definitely. I’ve got some other debt that I’ll be rolling that car note into paying it down, but that’s my ultimate goal. I’ve got my Emergency savings earning 4% in a CD right now along with my tax savings (I’m self employed) both earning 4% with my local credit union, but I’m going to reevaluate once the CDs mature since rates are dropping again.