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How do people afford cars these days?

Scarpozzi

Scarpozzi

Lifer
I'm definitely in the market for a new car. My bucket-o-bolts is a 94 Mitsubishi Galant with 166,000 miles on it. I wouldn't even consider replacing it, but the suspension squeeks, my engine doesn't accelerate correctly, and I sometimes hear a "pop" from my right rod arm when I turn. I'm ready to trade it in..... I did some searching and to replace my car with a 2000 or 2001 Galant, it will cost $12-14 grand. I'm a college student and can afford that. However, I was sort of looking at the Eclipse Spyder's when I was doing the preliminary looking and sorta got shifted that direction. They're about $20 grand for a 2000-2001. There's a big difference when you have to finance those two because the monthly payments would just suck on the Eclipse, not to mention it's a convertible so insurance would be sky-high for a 21 year old. I hate being so conservitive, but I've seen other people my age with sweet rides...how do they do it? My parents couldn't even afford to carry my ass through a car payment like that.
 
Yea..it amazes me. And that's only the beginning. You have insurance, maintance, registration,deductables and smog checks with more maintance if the thing fails smog. And some how people afford all that.
 
rich parents. Gotta have the hookups. 🙂

No doubt my dad could have afforded me a nice Jag or BMW, but I got a hand me down 84 accord as a first car and a 92 civic as my current (and second) car. Helps me learn the value of money. 🙂
 
I was able to buy my current car in 1997 for $4300. Sure it had 100,000 miles on it, but it has a spoiler and used to drive like a dream. I just wanna get a newer car cause I have a decent job these days... But I'm young so I wanna get a 'fun' car that I can enjoy and show off to the chicks... 😀
 


<< I hate being so conservitive, but I've seen other people my age with sweet rides...how do they do it? My parents couldn't even afford to carry my ass through a car payment like that. >>

There are a few ways, but usually its Mummy and Dah-Dah. Remember, you certainly don't have to make a lot of money to be in debt up your ears with a car payment you can hardly afford just because "its cool".

When you consider the average debt-load for every adult man and woman in the country, it becomes obvious how many are able to 'afford' it. They buy expensive cars with $1000 down, finance the rest and get 'backwards' in their payments (the car is worth less than they owe on it).

People have their priorities all screwed up, so while they drive bitchin cars that depreciate several thousand dollars, they live in dumps. That's ass-backwards if you ask me. First priority should be owning something to live in that doesn't drop in value every year, then you put a little away for savings, then you put a little away for retirement, then with what you have left over you buy a car.

But, they drive the bitchin cars, throwing good money after bad, then we're supposed to feel sorry for them when they reach 65 and they don't have a pot to piss in. Of course, then I'm supposed to support them with higher taxes...because I've made good choices and they haven't. Sounds fair to me...
 
My car payment is $300/month on a 2000 GrandAm GT (fun little car).. The car was about $26,500 or so, and I'm leasing it. In retrospect, I'll never lease a car again, but it's what I could afford at the time. Now, when I can get out of the lease, I'll likely go either BMW 540i or Saleen Mustang (decisions, decisions..)

😛
 
Well put, Tcsenter. I'm currently renting an apartment with a roommate. We live in one of the nicer places because both of us are computer guys. I'm getting a down payment together right now and I figure I'll be able to pay off $8,000 at the time of the purchase including the trade-in value on my car. That will ease help get things in a more reasonable ballpark. One thing you should know about me. I want something flashy, but I plan on maintaining it and driving the crap out of it. Those who tend to buy new flashy cars also tend to trade them in every 2-3 years....or wreck them. 😉
 


<< People have their priorities all screwed up, so while they drive bitchin cars that depreciate several thousand dollars, they live in dumps. That's ass-backwards if you ask me. First priority should be owning something to live in that doesn't drop in value every year, then you put a little away for savings, then you put a little away for retirement, then with what you have left over you buy a car. >>



If you live in a poor neighbourhood no one will laugh at you there, as they are all poor. But... if you drive around in a third-hand '50 Lada (Eastern-European car, quality of which can be compared with German humour compared to English) it doesn't matter if your house is worth $3M, people who see you driving around will think you're a loser, as they can't see your house. That's why a lot of people rather have a huge debt but a cool car than to have a functional but boring car and live debt-free. Try picking up chicks in a rusty, old, crappy car, and then try to do it while driving a brand new Ferrari. Note how much more succesful you will be in the second situation, as you will seem a lot richer with a Ferrari, eventhough you'd be paying for it the rest of your live.

This is even worse with people from poorer countries who go back to visit their family by car once in a while, as they want to show off their status to all those who stayed in their country. Moroccans tend to do that a lot around here: work 16/7, get a huge loan, buy a big-ass car, and go back to Morocco during their vacation to show how well they are doing back home.
 


<< If you live in a poor neighbourhood no one will laugh at you there, as they are all poor. >>

Actually, if you drive around some of the impoverished areas I'm near, its common to see a $50,000 Cadillac parked in font of a run-down house that is worth maybe $30,000. The kind of car you drive is a popular measure of one's worth or prestige no matter what your socio-economic status. That doesn't mean you "must" embrace this popular measure of prestige or 'image'. Again, its a choice of priorities. What's more important, impressing the neighbors or the security of knowing you can retire comfortably when you reach the average retirement age?

Short story: Two brothers, both employed in the same industry, both made the same amount of money, both with comparable families. One brother bought modest vehicles and drove them until the body distintegrated away from the frame due to rust. He had modest tastes in everything, bought his clothes from discount stores, drank only on rare occasion, took simple vacations once every few years, rejected lottery tickets as a retirement plan, saved his money and put them into IRA's (at the time, what is known today as "traditional" IRA was the only IRA available), bought some blue chip stocks when he could afford to, packed his lunch every day and ate at restaurants infrequently, did most of the work on his home and vehicles himself, always looked for better deals instead of impulse buying, etc.

The other brother bought new cars every 4 to 5 years, and trucks, oooo gotta have a new 4x4 truck every 3 years, a Harley, oooo gotta have a fishing boat! He took vacations every year, was fond of going to the casinos an average of twice per year and liked to party it up or go fishing (aka "party") on the weekends, always paid to have any repairs done instead of doing it himself, never looked for a bargain, blew his money on whatever he wanted, and relied completely on his company-provided pension for retirement. He also liked to poke fun of his brother and his conservative ways. Every new "toy" he bought, he had to stop at his brother's house to gloat and show off.

Guess which brother was completely dumbfounded at how the other brother could afford to pay off his home early, retire at 60, move to California and build a brand new home? Not a fictional story, this is the true story of my father and his brother; my father being the more conservative of the two. But, it just as well may be the story of tens of millions of Americans.

Guess who is laughing now??
 


<<

<< If you live in a poor neighbourhood no one will laugh at you there, as they are all poor. >>

Actually, if you drive around some of the impoverished areas I'm near, its common to see a $50,000 Cadillac parked in font of a run-down house that is worth maybe $30,000. The kind of car you drive is a popular measure of one's worth or prestige no matter what your socio-economic status. That doesn't mean you "must" embrace this popular measure of prestige or 'image'. Again, its a choice of priorities. What's more important, impressing the neighbors or the security of knowing you can retire comfortably when you reach the average retirement age?

Short story: Two brothers, both employed in the same industry, both made the same amount of money, both with comparable families. One brother bought modest vehicles and drove them until the body distintegrated away from the frame due to rust. He had modest tastes in everything, bought his clothes from discount stores, drank only on rare occasion, took simple vacations once every few years, rejected lottery tickets as a retirement plan, saved his money and put them into IRA's (at the time, what is known today as "traditional" IRA was the only IRA available), bought some blue chip stocks when he could afford to, packed his lunch every day and ate at restaurants infrequently, did most of the work on his home and vehicles himself, always looked for better deals instead of impulse buying, etc.

The other brother bought new cars every 4 to 5 years, and trucks, oooo gotta have a new 4x4 truck every 3 years, a Harley, oooo gotta have a fishing boat! He took vacations every year, was fond of going to the casinos an average of twice per year and liked to party it up or go fishing (aka "party") on the weekends, always paid to have any repairs done instead of doing it himself, never looked for a bargain, blew his money on whatever he wanted, and relied completely on his company-provided pension for retirement. He also liked to poke fun of his brother and his conservative ways. Every new "toy" he bought, he had to stop at his brother's house to gloat and show off.

Guess which brother was completely dumbfounded at how the other brother could afford to pay off his home early, retire at 60, move to California and build a brand new home? Not a fictional story, this is the true story of my father and his brother; my father being the more conservative of the two. But, it just as well may be the story of tens of millions of Americans.

Guess who is laughing now?? >>




That is a very good story and one that does have a "moral" to it. However (I need to play Devil's Advocate here...)

I have a company pension that I'm relying on for retirement. I also have Mutual Funds that I invest in every month (they are not doing too well now, but I don't thing anyone's investments are doing well now. 🙁)

I would love to retire at 50 or even 55...but that won't happen. I'm not a "professional" ala a doctor or lawyer. I'm a working stiff. I want to enjoy my life NOW, while I'm still young and my bones wont' snap if I go waterskiing or something.

I have gone the route of the crapped-out, paid off car. It's a money pit. Stuff breaks, you pay out the butt for parts and repairs. My truck payment is outrageous. However, it's what I WANTED and I have a full warranty. No worries about repairs for the next 10 years. 🙂

I also have a motorcycle, a few computers, lots of power tools (gotta have power tools!) and my pets (snakes)

Do I need all that? Of course not. But, why deny myself the things I love? I'm saving for the future, little by little and I'm enjoying myself now.

Maybe I'm a little too controlled by my "ID", heck, my ID runs my life...but I've got my toys. I've got my reliable primary transportation and saving for the future. CARPE DIEM!!!! 😀

EDIT:
One thing I forgot to mention. I don't make all that much, so to afford the lifestyle I like, I work two jobs. Have worked two jobs since 1995, actually. Nobody hands you anything in this world (unless you're a rich kid...bastard!) so you must work for what you want. 🙂
 
I believe many people do lease. I leased a car years back and will never do it again. After the lease ends you are left with nothing. The dealer takes the car back and you have no equity towards a new car.

I currently have two car payments with only two payments left on the oldest car. I could trade in either car today and have positive dollars to put towards a new car. I plan on keeping these cars till my wife insists we get a minivan.


 
i'm a 21 year old college student also and i just got a new car 2 weeks ago. it cost just under 18k. I can afford the monthly payments (350/mo).. but i'm stuck with them for the next 5 years which really sucks. Luckily i have parents who are nice enough to help me out a little with this. And I have to take care of all the maintenence and insurance.

i can afford it becuase i work and save up a lot of money durring the summers.
 


<< I plan on keeping these cars till my wife insists we get a minivan. >>



OMG! Noooooo! AIIIIIIEEEEEEEEEEEEEE! Noooooooooo! Don't cave, man! You must not let your wife emasculate you. If she brings up that whole "but it has lots of room and can fit all the kids and the doggie" arguement, tell her "yep, so does a Suburban/Montero/Explorer/pick one.

Family vans are the bane of "People With Somehwhere They Need to Be" and motorcyclists across the USA. Family Vans are Satan's Projectiles. Family Vans and the Drones that drive them cause more accidents...my God man, don't do it! Your IQ will drop by 35 points the moment you sit inside. The damage is irreversible, BTW.

Do not get a Family Van. I will make fun of you. You've been warned. 😉
 
Almost everyone I know that has leased a car regrets it. Don't do it. On the other hand, everyone wants a 2000 car minimum and it has to be really nice. Them people just rack up debt. My car cost me $800 3 years ago and I probably put about $1000 into it since then. Works great. Looks like crap, but it runs nice and gets me where I want to go. If it gets smashed or something, I'm not out much.
 


<< I believe many people do lease. I leased a car years back and will never do it again. After the lease ends you are left with nothing. The dealer takes the car back and you have no equity towards a new car.

I currently have two car payments with only two payments left on the oldest car. I could trade in either car today and have positive dollars to put towards a new car. I plan on keeping these cars till my wife insists we get a minivan. >>



Not only that it means you can't wait for deals either. If I had owned my previous car instead of leasing I could have waited a few more months and paid 1.9% interest on the new car. :/
 


<< I hate being so conservitive, but I've seen other people my age with sweet rides...how do they do it? >>


I noticed this, too. What it pretty much comes down to is one of two things: Parents buy it for them, or they are willing (read foolish enough) to go outrageously into debt.
I have one friend in particular who dropped out of school, got one lucky cushy job, bought a brand new fully loaded Jetta.
Fast forward a year, the economy dipped, he got laid off. He's got no education and no certs. Had to move out of his apartment and in with his parents.
He's lucky he's got parents who are willing and able to bail him out. Not everyone's that lucky.

As for MichaelD's story, he's right in a way--you've to get yourself what you want sometimes, otherwise you'll be miserable.
OTOH, you're only 21. It's a little early to cash in your chips. You may have a good high-paying job now, but that can all change in a heartbeat....you've got the next 30-40 years to worry about before you can even retire. $6000 is a nice chuck of change to have in your back account just in case.

I think it's a moronic idea for anyone still in college to buy a brand new car, even a cheap one. If you get a $2000-3000 used car, even if for your college years you have to dump $1000 in it each year to keep it moving, you've still paid less than if you bought a Kia or a Hyundai brand new. I'd hang on to that crapper Galant at least until it dies or I've graduated. Whichever comes first.
 
Its easy. I have three cars atm but the newest is a 93 and the average purchase price of all 3 is $1667. They all run and drive good and the 93 truck even looks good 🙂. I am selling 2 and keeping my $800 mini van and buying a sports car but even it won't cost more than $4000. If I can't pay for it in cash I don't buy it.

Hey my mini-van kicks ass. Its a turbo.
 
Guess who is laughing now??


There are two sides to it. While your father may be laughing now, he's laughing at the end of a 60-year run. While he was being conservative and sacrificing all those years, you uncle was enjoying himself in the true prime of his life.

There's alot to be said for conservation, but extreme frugality at the expense of enjoyment in hopes for something down the road isn't necessarily the answer. Suppose, god forbid, your father had passed away at 55. When would the enjoyment have started - never!


 
The Key to maintaining good credit:


<< If I can't pay for it in cash I don't buy it. >>



Im 17 and Ive already found out about credit. I had a good high payin job, then I quit and am currently in the process of getting into my next one. Anyways, I got one of those $500 limit cards, and of course I went right out and used it. Now, Im not stupid. I know that credit can be a killer, I worked at Discover Card, after all. 🙂 Anyways, I dont really understand. I had less money when I was working. I mean money to play with. I was bringing in just under $2k a month, and didnt really have any money in the bank. When I quit, I saved my last check and have lived 4 months on a grand. How the hell? I dont get it. I only have $200 in bills every month, but why did I not have any money before? And what the Fuuck did I spend it on?!
 


<<

<< I plan on keeping these cars till my wife insists we get a minivan. >>



OMG! Noooooo! AIIIIIIEEEEEEEEEEEEEE! Noooooooooo! Don't cave, man! You must not let your wife emasculate you. If she brings up that whole "but it has lots of room and can fit all the kids and the doggie" arguement, tell her "yep, so does a Suburban/Montero/Explorer/pick one.

Family vans are the bane of "People With Somehwhere They Need to Be" and motorcyclists across the USA. Family Vans are Satan's Projectiles. Family Vans and the Drones that drive them cause more accidents...my God man, don't do it! Your IQ will drop by 35 points the moment you sit inside. The damage is irreversible, BTW.

Do not get a Family Van. I will make fun of you. You've been warned. 😉 >>




Mike, I love ya man, but I have to admit...Mini-vans are not that bad. I was kinda stuck with one when I went off to college. I had to sell off my truck (I miss ya girl) due to 10 mpg gas milage. I was left with a '89 Plymoth Voyager Turbo 4-cyl. Yeah it felt weird at first, but became the most useful all around vehicle I ever had. I could pack in about 8 friends into that thing or even drop the seats out and haul lumber or furniture. Even had it dubbed "The Shaggin Wagon" by a few girls. 😉

Don't get me started on SUVs. I don't want a flame war here, so I wont state my opinion. 😛
 
dude, saw an used eclipse 2001 for about 15k..... carmax, richmond...

that's pretty cheap.. maybe i should get one.

 
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