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^^pinpig But unless we're Trump, Gates or Buffett don't MOST of us make choices about what we buy -- choosing to pay for one thing over another.
If a person eats out every night, for example, and they're willing to to now just buy groceries and cook at home like most people do. Or stop buying gourmet coffee at 5.00 a pop, Which are already both luxuries in themselves, then technically the person is just 'shifting their 'disposable' income spending.
So that's not as 'unaffordable" as it might seem. It's not like they're not paying a utility or NOT eating -- to pay for the car, they're cutting something that --sure -- we presume they enjoyed doing, but they're apparently also willing to drop one treat for another. IF they're maxing out the 401K, and saving money besides which they very well could be doing -- I wouldn't say they are "posing like they can afford something they can't afford."
this is exactly my point. for example, i currently have a "beer of the month" club for $20/month. i also have my netflix subscription for $16/month. that's $36/month i could cut out of my monthly spending if i cared to, with relatively little impact on my life. I'm maxing my 401k and my wife is maxing hers. We have a reasonable budget for groceries, eating out, and "work lunch", but i could easily cut $100/month from it if i really wanted to or needed to. Though i would agree, most people don't track their spending as closely as I do, but there are pretty simple changes I can make in my monthly spending to add to what I'd spend on a car, if i had the desire.
I don't have the desire, so I waste my money on other things.
I see your point as well... choosing where to spend your money can allow you to pay for a more expensive car.
My point is - if you're going to buy a $50K car, you better be making more than enough to cover car costs without having a budget tight enough that requires you to save in other areas to afford the expensive car. I'm saying that you should have the disposable income to justify the luxury car.
People don't buy yachts if they don't have the lifestyle that backs it up.
In my opinion - if you want to roll in a luxury car (a >$50K car), you better be able to still afford your high end coffee, your fancy shoes, and you better have retirement savings AND health insurance all taken cared for. You better not be rolling in my ER with an Escalade on medicaid. (Extreme example, but you get the point).
You're right. But I think you misunderstood what I was saying when you responded. The cars I have bought have been high $20s/low $30s. I couldn't stomach spending $40-$50k on a car. I could have done it. But I'd rather be a little looser with eating out and such. If friends call me and ask if i want to go to a concert, or to a bar, or take a weekend trip to lake george, I'd rather have a larger amount of disposable income available. I'd rather buy organic chicken and steak and grapes.
I don't think you have to be able to "waste" money on expensive starbucks and $300 shoes simply to be able to drive around in a loaded Toyota Highlander (approx $50k) or even a Chevrolet Tahoe. I could afford $300 shoes right now, but I think that's wasteful. My $75ish shoes serve me well, and when they start not to, my $20 spent on resoling them if still in good condition helps them serve me longer. I don't resole them cause I cannnot afford another pair of shoes, I resole them because I think it's wasteful to toss good leather just cause the soles wore out. And things like that, while it may sound like penny-pinching to some, help me afford nicer things in other areas on a whim.
I get your point, but we really don't have to be able to afford Allan Edmons shoes to buy a BMW 5 Series. Though sometimes the salespeople at a dealership act that way.
Maybe they just have a better job and are actually wealthy?
To even drive a $80k+ car, you either have to have really, really good credit (which requires a good salary or income anyways), have a lot of money, or have a rich family or business.
When you make that much money, wouldn't you want a nice car, a nice TV, etc. too? People who make money like to reward themselves as much as the next guy and there is nothing wrong with that. I don't quite see how that is showing off based on your assumptions since you really don't know anything about them.
On the opposite end of the spectrum, there are filthy rich people who are crazy stingy - still buys cheap clothing, haggles like crazy, and does not leave tips and uses coupons. Are they supposedly trying to prove a point too?
I happen to be one of these guys "on the opposite end of the spectrum" - I'm not filthy rich, but I am crazy stingy, buy cheap clothing and use coupons. Oh, I don't haggle because I hate any situation where I have to haggle and there's no definitive price tag, and I always leave a tip where a tip is warranted.
I'm financially independent and I got this way simply by not throwing my money away into status symbols. I don't suffer from affluenza. I'm sure and confident enough deep inside not to require the need to prove my worth by buying luxury cars, a McMansion, and having servants wait on me or kiss my ass. I am in fact a minimalist who Despises Waste which happens to be what spenders do in Amerca and why everyone's in debt or nearly there. Idiots trying to be big and powerful looking, often at the expense of their savings and future. They Need To Impress Others. I do not, I save and invest wisely, I live a Spartan life style and enjoy the simple things in life. In fact it's something of a fun challenge trying to save money, reuse and repurpose "resources" and not throw money away on petty pretty things which serve no purpose. It pays off by becoming financially independent with your money in the bank making more money than you spend and you don't have to work anymore. Now back to the topic: I drive two cars. Both are old and reliable 4-door ordinary Nissans, an Altima and a Sentra. One is 18 years old, the other is close to 15. The former I inherited from my mother. Both were purchased brand-new from dealers and were paid for in full. No leasing. Only fools lease. They are both garage-kept so they tend to Last. They are fuel efficient and reliable and serve me well in getting me from point A to point B. That's all there is to it.
Oh, and some people think I'm a bum, too, and treat me as such. But I'll have the last laugh. I have no money worries.
People spend on what is important to them. A lot of people feel that it is extremely important to have a nice car. They spend for the car and give up something else that isn't as important to them.
Some people put high value on organic food and won't shop anywhere else but whole foods. They give up something else that isn't as important.
Some people put high value on saving and they give up a lot of other things to do it.
It's pretty darn easy to buy a nice car. They'll give an auto loan to anyone and sell you a car for no money down. When I see an expensive car, I don't think that the driver is oh-so-cool and rich. I just think he is deeply in debt.
People spend on what is important to them. A lot of people feel that it is extremely important to have a nice car. They spend for the car and give up something else that isn't as important to them.
Some people put high value on organic food and won't shop anywhere else but whole foods. They give up something else that isn't as important.
Some people put high value on saving and they give up a lot of other things to do it.
It's pretty darn easy to buy a nice car. They'll give an auto loan to anyone and sell you a car for no money down. When I see an expensive car, I don't think that the driver is oh-so-cool and rich. I just think he is deeply in debt.
Or highly stupid if his/her income is not more than the cars selling price.
Haven't read the whole thread, but when I see a 50k+ car on the road, I don't think -- oh they must be wealthy. I think -- they must be leasing and/or living large regardless of their income. I mean, maybe they are wealthy -- esp when I see those cars in NYC where there's a lot of investment banking/hedge fund/Wall Street/lawyer money. But when I see those same cars in my parents' hometown which has no economy to speak of -- basically just office jobs or doctors and there are only so many doctors -- then I KNOW it's not a wealthy thing but a lifestyle thing.
I buy used luxury cars for around half the original price (about 4 years old), and I trade them in after another 4 years. Just by looking at the car, you may think I'm either rich or foolish, but I'm spending less than the price of a new Corolla.
This weekend I was driving around my city and just noticed how many expensive cars there were around. For example, this one lady was driving an Infinite QX56 which tops off around $80K. Basically, all these people in my city also own houses.
Even at my work, most people start with at least "low end" car around $35K and many get $60K+ cars. I think I am one of few guys my age at my work who doesn't have BMW or a fancy car to show off. I still driving my almost 5 year old Hyundai still. Don't think I would get a car over $50K+ unless I was a millionaire with extra cash lying around.
I know most people at work or at my city don't earn that much more than me. But how could they afford these expensive cars? I really wonder what their budget looks like since most have houses or luxury apartments too!
The ones that can afford the expensive cars are driving 10 year old reasonably priced cars they paid cash for.
Lamborghinis, Maseratis and Teslas impress me when I see then on the road. That's about it. Maybe the rare antique car, too.
My next door neighbor has a lambo and it's impressive but I have no clue if he has his finances in order
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