re: How are you frickers affording 70k+ Ford Expeditions and Chevy Tahoes?

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A big factor is that a lot of people are still paying mortgages on a 30 year from 2018 - 2020 or so in the 2 - 4% range, so there is a shitload of disposable income still floating around for a lot of couples. What they aren't spending in real estate they are spending on things like vehicles, vacations, etc., and that's partially why inflation has been so damn high in those particular segments over the last few years.

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I saw somewhere a while back that there are four "tiers" (for the lack of a better word) of couples who all make the same amount of money. The top tier (meaning the ones who have the most disposable income) are those who bought houses with low interest rates and do not have to pay for child care (either they have help from family, public school, etc...). Then the middle 2 tiers are those that either bought a house with an inflated interest rate or have to pay for child care. The bottom tier are those who both bought a home with an inflated interest rate and have to pay for child care.

Having a low home interest rate and not having to pay for child care can be upwards of 2k+ in cash flow difference on a monthly basis (depending upon where you live it could be much more than that).

Look at this example:

Couple A buys a house that is 425k, puts 20% down, has an interest rate of 6.75%, and has a monthly note of $2685. They also have 2 kids in daycare, which is another $1300 per month, for a total of $3985 every month.

Couple B bought a 425k house, but they bought it in 2020, put 20% down, have an interest rate of 2.75%, and a monthly note of $1868. They also have 2 kids in daycare, which is the same $1300 per month, for a total of $3168 every month.

Couple C also bought a 425k house in 2020, put 20% down, have an interest rate of 2.75%, and a monthly note of $1868. They also have 2 kids but they have a family member who will take care of them for free. Their total monthly mortgage+child care bills are $1868.

The monthly cash flow between these 3 couples who all hypothetically make the same amount of money is staggering. $800 between couple A and couple B, and over 2k between couple A and couple C.

I just searched "car repossession rates" and the first page of results is full of articles saying the number is spiking right now.

Auto loan delinquencies are at a 13 yr high.

Well you’re a crazy person for paying for your kids’ college. I’ve made it known that my kids are on their own for college. Dad wants to retire. Kids can take loans and work. Like I did.

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Well you’re a crazy person for paying for your kids’ college.

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My dad paid for mine. I graduated with $0 in student debt and a paid off truck. It really was a nice head start in life as a young adult.

We plan on doing the same for our kids.

My wife had the absolute opposite situation and went into the military because she thought it was her only option.

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Couple D gets hand outs from parents… they pay for grandkids school, house down payment, or mommy’s Denali wagon to haul around the kids “safely”. There are a ton of people that never leave the nest

Couple E lives on credit card debt to keep up with joneses, might lease their Denali wagon, gets Helocs and private loans. Will die with more debt than assets

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Couple D definitely exists, but Couple E could be any of A-C if they don't budget appropriately.

I was just showing how it's possible for people to have a similar perceived financial status as someone else, but be in a completely different ballpark on a month to month basis.

That's me and I tend to the used end from a friend who goes to auction regularly. My brother did a full Denali with all the bells and whistles and he's paying upwards of 950 a month on a 6 year which still strikes me as insane.....I mean, he can certainly afford it and then some, but it's still crazy in my book.

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And you just explained why the constant whining from the younger generation against the "Boomers" is unwarranted.

I get that the Boomers were spoiled and entitled compared to their parents (they were the hippie generation, after all), but they were hardnosed tough guys compared to today's young people who say they can't afford to live when in reality what they really mean is that they can't afford a new Infinity SUV when a used Sequoia would do just fine.

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They also seem to just want it now; it doesn't register that their parents (and the majority of the middle class) didn't have all this stuff when they started out.

Kia carnivals with a V6 are around $36k.