I honestly wonder how so many people can afford cars around $50K+? (pay, financing)
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Some cars that seem $50K may not be. A lot of the luxury car dealer (Lexus, BMW, Audi, Mercedes, etc.) sell "re-certified" cars which can make a lot of financial sense for the purchaser. Lots of people go the re-certified route.
E.g. I just looked at a 2009 re-certified Lexus. There has been no body style change, so it looks nearly identical to the 2012 except the 2012 has some addtnl. silver molding below the doors.
The new 2012 is $50K while the 2009 is $26K. The 2009 looks brand new and has low mileage (I think 15k). It includes most of the features on the 2012 (e.g. GPS, moonroof, bumper/light sensors, etc.) and has been completely checked/refurbished with a 100K warranty. And if you need to finance, the dealer rate is 1.99% - the lowest I've seen.
So you have a $26k car that may look like a $50K car. And compared to most new "non-luxury" cars at the same price level, the used Lexus IMO will have higher quality parts/less maintenance issues, more comprehensive warranties, better dealer service, more safety features (e.g. complete air bag curtains), and lower financing cost. Thus, purchasing the Lexus over another "non-luxury" car may make financial sense.
My car cost $45k and I paid for it with a $38k check (counting trade in). Is it that hard to believe that some people can actually afford the stuff they buy?
I bought a 2008 LTZ for 35k in 2010. It only had 15k miles when I bought it. Brand new that truck would have been 58k since it is fully loaded. But since both my ex and I had very good job we could afford it and save plenty every month. But I do know people that drive 70k Caddy's that live in trailers and make 25k. Then they ask folks to borrow money, sugar and everything else.
Dual earners. Man, if I was married, I'd have cable tv and a 32" or larger set. Maybe even an iPhone.
This is definitely true. When I was single I didn't do half as much as I do now that I am married. My wife and myself both work full time and it helps us to be able to afford the little extras in life. We never go overboard though. Dual income also helps with saving more.
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Originally Posted by daddiesgirl
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?
Another good point. Sometimes you gotta reward yourself. My first 7 years in the Air Force I drove around in the cheapest vehicle I could find. I didnt care. I was into other stuff like traveling, computer gaming, clubbing. I could easily afford a 30-40k vehicle but thought it was a waste. Then 2 years ago I returned from a 6 month deployment to find out my POS car didnt start(starter/transmission and engine problems). I had so much running around to do that I was forced to rent a car. Then it hit me. Why am I doing this to myself, I at least deserve something nice, ESPECIALLY after spending time in a war zone.
I made a promiss to myself to never ever buy a lemon again. My wife still laughs at my old car. And since then I have had kids so its more important now to have a dependable vehicle.
I may not go out and buy a 50k car(not yet) but I'm definitely going to treat myself to something nice just so long as I don't break the bank.
The rich, the wealthy and similar terms like that are generally and most accurately used to describe people with substantial net worth. This condition, when it applies, has damned little to do with their level of earned income.
I agree completely. But I think you'll have to go a long way to put the pinch on someone who makes $360k who drives a $50k car.
Now if they drive a $150k car, I might think...uh, dude...you leaving enough for savings, etc? You building wealth appropriately or you just blowing your wad?
Oh, and op...before the economy tanked and used cars were actually cheap, I knew TONS of people who would buy used luxury cars for like NOTHING. Now you might as well buy new...cars within three years of age aren't that different in price.
I generally find 3 types of people who buy used cars:
10% are truly wealthy, have the disposable income to not worry about what a vehicle costs.
30% are leasing them and can afford the payments but CAN'T afford the actual car (BMW has very attractive leases)
60% simply wait 1-3 years and buy them pre-owned for half the price of new
Most of the truly wealthy folks I know are older and their taste in cars reflect that. You'd be surprised at how many multi-millionaires are driving around in Caddy DTS's instead of German luxury cars.
Most folks who lease a vehicle go for the most entry-level luxury car they can afford, BMW 3 Series are EXTREMELY popular here. BMW makes a ton on 3 year leases.
The majority of luxury car buyers I find just simply wait a couple years until the used market has quite a few of the luxury vehicle they're looking for and snatch it up for significantly less than new.
My co-worker drives a late model Lexus ES. He doesn't make much more than me I would imagine and I know I couldn't afford one of those new unless I wanted to have very little additional play money. MSRP is about $40k. He bought his used for around $15k.
It might be undeserved, but, honestly, my first thought at seeing an expensive BMW is that the driver is more interested in looking rich than being rich.
Smart money buys them for pennies on the dollar when the dumb money goes bust.
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). I had so much running around to do that I was forced to rent a car. Then it hit me. Why am I doing this to myself, I at least deserve something nice, ESPECIALLY after spending time in a war zone.
