Car Loans - keeping America poor?

[thinhorn_AK]

We will see 50 year mortgages in the next 5 years IMO. People will be making $2500/mo payments on $500k houses and about $100/mo will be going to the principal. Appreciation won’t outpace the interest/insurance/taxes for the first two decades of the loans. And they will cheer the government and politicians for “helping” them out!

Scary to think about. I feel bad for my friends that had to go with 30 year mortgages. I was glad to get a 15 year term on my house, we are already seeing daylight and our rate is 2.1%. It’s going to suck when I move and need to buy another place though and pay a 7% (or whatever they are now) rate.

 

[BRTreedogs]

They don't announce to you that they must file the SAR form.

Come on man
Have you ever actually heard of anything ever coming onto anyone because of this?

And if there was that means they were up to criminal activity.

No one legit is getting charges brought on them.

The only way it would be viable at all to receive charges is if they were doing something illegal.

This is some out there poop man. No regular law abiding citizen has anything to worry about.

 

[Hnthrdr]

Scary to think about. I feel bad for my friends that had to go with 30 year mortgages. I was glad to get a 15 year term on my house, we are already seeing daylight and our rate is 2.1%. It’s going to suck when I move and need to buy another place though and pay a 7% (or whatever they are now) rate.

In theory… prolonged 7% should soften the market and prices should come down some… seen it a bit around me. But in the high demand zip codes places still trading about 2022 prices and only lasting a week or so…

 

[thinhorn_AK]

In theory… prolonged 7% should soften the market and prices should come down some… seen it a bit around me. But in the high demand zip codes places still trading about 2022 prices and only lasting a week or so…

My dad called about a new place he was interested in looking at a month or 2 ago. They didn’t even want to show it. They just asked him point blank: are you going to buy it? When he said he wanted to look at it first they didn’t want to deal with him anymore. Crazy times.

 

[Clarktar]

Paid cash in 2008 for a 99 ram. Still drive it today. Wife drives a 2005 Toyota we bought in 2015.

 

[Clarktar]

Well, 85% of middle and upper middle-class retirees die with 90% of their retirement money intact and unspent. They could have lived a better life all along but didn't for 2 reasons....they were too thrifty and/or they were afraid to spend the money "in case they need it next year". Moral of the story...either you enjoy your money or somebody else that didn't work for it will enjoy it for you. That, and the tax man is getting his share no matter what.

You absolutely can live a very good life, save for kids college, have a nice home, go on family vacations, have nice new or newer auto's and save for a comfortable retirement without sacrificing and squeezing the buffalo shit out of every nickel. I live an upper middle-class life and I did it. Retired 6.5 years ago at 58. Debt free and living very comfortably....but not vise-gripping every dollar "because I might need it next year". Last summer I bought a new F450 CC 4x4 and a new Kubota SVL 75-3 track loader to putz around with. I'm going to try and not cash in the chips with 90% of my money unspent while I live like a pauper. I suspect many here will be the 85% doing just that.

You had me at all your big bores! But a track loader as your daily! Now I know for sure!

 

[mostlybirch]

Well, 85% of middle and upper middle-class retirees die with 90% of their retirement money intact and unspent. They could have lived a better life all along but didn't for 2 reasons....they were too thrifty and/or they were afraid to spend the money "in case they need it next year". Moral of the story...either you enjoy your money or somebody else that didn't work for it will enjoy it for you. That, and the tax man is getting his share no matter what.

You absolutely can live a very good life, save for kids college, have a nice home, go on family vacations, have nice new or newer auto's and save for a comfortable retirement without sacrificing and squeezing the buffalo shit out of every nickel. I live an upper middle-class life and I did it. Retired 6.5 years ago at 58. Debt free and living very comfortably....but not vise-gripping every dollar "because I might need it next year". Last summer I bought a new F450 CC 4x4 and a new Kubota SVL 75-3 track loader to putz around with. I'm going to try and not cash in the chips with 90% of my money unspent while I live like a pauper. I suspect many here will be the 85% doing just that.

Not calling bull or anything but interested in the source for this, my gut tells me otherwise so I would like to be proven wrong.


Anyways $1000/month car payments are old news, the new hotness is monthly payments on your fast food.

 

[Tahoe1305]

Not calling bull or anything but interested in the source for this, my gut tells me otherwise so I would like to be proven wrong.


Anyways $1000/month car payments are old news, the new hotness is monthly payments on your fast food.

It’s an interesting idea and I’d buy it. I think for folks who early on built a big nest egg and the habits to do such, it is a very deliberate focus to start spending it at the right time not to die with it.

The snowball can build pretty quick and if you don’t have a plan, it will just remain a big number on the computer screen.

 

[mostlybirch]

It’s an interesting idea and I’d buy it. I think for folks who early on built a big nest egg and the habits to do such, it is a very deliberate focus to start spending it at the right time not to die with it.

The snowball can build pretty quick and if you don’t have a plan, it will just remain a big number on the computer screen.

Sure, I certainly don't intend to die with a pile of money. At the amounts we are talking about for middle/upper middle class people it can be a bit of a fine line if you get really sick or need long term care which can cost easy 6 figures in this country.

I was just curious on seeing the data because I had seen lower figures, like such https://www.usatoday.com/story/mone...half-of-americans-die-nearly-broke/102312340/

I think the "upper middle class" clause probably does some heavy lifting.

 

[taskswap]

This might be a hot take but I feel like people can overuse anything - car loans (consumer finance), drugs, alcohol, redheads, gambling... name something, and somebody, somewhere is probably abusing it. And when people overuse something, there are always those standing in line to profit from it. You may as well just say "I don't understand why people do bad things to themselves - they should just live clean lives"

 

[blacktail434]

$1000/month payment @ 8% interest over 84+ months for a depreciating asset??? No thanks!

Yes, definitely keeping a lot of folks “broke” at those numbers IMO.

 

[Pacific_Fork]

I bought a new $60k Tahoe in 1999. Still drive it. Been paid off for a long time. I’m retiring in two weeks and after 26 years I finally want a new car, so I’m going to have my first car payment in a very long time this month. I think it was worth it….20 years of discipline and saving that $700 a month payment.

The only reason I’m willing to buy a new car is my goal is to drive it 20+ years (like the last one…that I still plan to drive).

60k?

I had to look it up and call BS on that price in 1999. Google AI says fully loaded 34k. What you smokin willis?

 

[Tahoe1305]

60k?

I had to look it up and call BS on that price in 1999. Google AI says fully loaded 34k. What you smokin willis?

Hahaha. I have the window sticker in it still. It was that (maybe $58k). It was a 2000 model bought in winter of 99.

 

[Pacific_Fork]

Hahaha. I have the window sticker in it still. It was that (maybe $58k). It was a 2000 model bought in winter of 99.

Prove me wrong so I can sleep tonight. I don’t see how a Tahoe cost that must 25 years ago and google never lies I looked twice hahah

 

[chasing_animals]

Another consideration is that with older paid off vehicles you only need liability insurance. This saves money every month to buy another vehicle when the time comes

 

[Tahoe1305]

Prove me wrong so I can sleep tonight. I don’t see how a Tahoe cost that must 25 years ago and google never lies I looked twice hahah

So we can both sleep I went digging in the glove box to confirm. Or fail to in my case. You are right. MSRP $41k.

I guess I self inflated for 2025 rates . Sorry.

Funny. I haven’t looked at that in probably 15 years and I swore that’s what We paid. Nope.

 

[CorbLand]

Not calling bull or anything but interested in the source for this, my gut tells me otherwise so I would like to be proven wrong.


Anyways $1000/month car payments are old news, the new hotness is monthly payments on your fast food.

I would be interested to see the source as well but honestly wouldn’t surprise me. A lot of people spend their entire life saving and saving and then can’t turn that off when the time comes.

Many also could be using the 4% rule in their retirement.

I ran the numbers a couple months ago and if I want to have 110K a year and only pull what I need to achieve that after SS from my 401K and the stock market has average returns, I will most likely die with twice as much money in my retirement as I started with.

110K is a little over 10% more than my wife and I make combined now and we live a decent life.

That’s also just my retirement, doesn’t count pulling any SS or anything from what my wife has.

 

[ShootOkHuntWorse]

I have a buddy who had a brand new truck and an SUV, he convinced himself that he needed another, bigger truck because sometime on his 5 minute commute his knees hit the dash when he was riding passenger because his kids car seat was taking up space.

He dropped a ton of $$$ on the 2nd truck while still paying for the first and taking a huge hit on the SUV. He’s usually broke, blames it on having kids, swears up and down he paid cash for the truck.

I was at his place the other day, he passed me a paper to write a number down on….it was his monthly truck bill of 1700.00+.

I can’t imagine making a 1700 dollar monthly payment on a vehicle. Cars make people stupid for some reason. I drive a 20 year old truck and work on it myself. My wife is in a 2013 vehicle that I work on myself.

Some people don’t mind paying tons of bills I guess. I like keeping it simple. Mortgage, phone and credit card.

That’s not even the worse though, I’ve known people that took out loans for 20k snowmachines and 80k boats.

Next think I know, these clowns will be letting their wives quit work to stay at home and they will blame something else for being poor.

To be fair daycare is absolutely insane these days. Some people can’t get a job that offsets that cost+ time away from kids lives.

 

[thinhorn_AK]

To be fair daycare is absolutely insane these days. Some people can’t get a job that offsets that cost+ time away from kids lives.

Yeah it’s crazy what daycare costs. Where I live it’s even worse because these tribal offices will pay the costs but only to qualified babysitters or whatever you want to call them so since the tribe is paying they charge an absolute ton because they know they will get reimbursed. People who aren’t affiliated with the specific tribes are priced out pretty hard.

 

[ShootOkHuntWorse]

Yeah it’s crazy what daycare costs. Where I live it’s even worse because these tribal offices will pay the costs but only to qualified babysitters or whatever you want to call them so since the tribe is paying they charge an absolute ton because they know they will get reimbursed. People who aren’t affiliated with the specific tribes are priced out pretty hard.

That’s too bad. Everything gets ruined by somebody.