Americans and Car Debt

[NicPaus]

This. And a $50k truck powered by gasoline with cloth seats is not allowed here.

My 2021 budget 2500 has leather and 4x4 Lol. 47K plus fees. Still had to pay 4k a month to get it paid off in a year. No more truck payments currently. In 2017 I had 3!! Ready for the recession you keep mentioning HaHa.

 

[hallett21]

This is a legitimate argument, and I don’t have any car payments.

Paid my work truck off and wife’s has 36 months to go. Odds are I’ll end up in a payment again but trying to hold off.

I just see so many other cash generating options when you start talking 50k+.

 

[Your ad here]

How many of you guys are self employed? Do you understand good debt vs. bad debt?

 

[LargeOrangeFont]

My 2021 budget 2500 has leather and 4x4 Lol. 47K plus fees. Still had to pay 4k a month to get it paid off in a year. No more truck payments currently. In 2017 I had 3!! Ready for the recession you keep mentioning HaHa.

No signs of it here yet. My Landscaper says his business is booked through spring. Not a frenzy but steady work coming in. He went from 2 mediocre crews to one high performance crew in the fall.

Baller! I’m rolling XLT Sport cloth life over here. I just tinted the windows real dark and bought Platinum fender badges to keep appearances up for RDP.

 

[hallett21]

Good debt is a 24 v drive schiada. Bad debt is something lame like property. Change my mind

How many of you guys are self employed? Do you understand good debt vs. bad debt?

 

[Lumpy]

Just made my last work truck payment two months ago...used to trade them in every 2-4 years...now that a half ton 4x4 is 50k plus forget it.
All toys are payed off...and Ive got a few. Mortgage is all I got unless you include putting my Son thru collage on my dime because his mother is a
piece of shit.

 

[NicPaus]

No signs of it here yet. My Landscaper says his business is booked through spring. Not a frenzy but steady work coming in. He went from 2 mediocre crews to one high performance crew in the fall.

Baller! I’m rolling XLT Sport cloth life over here.

It's been the busiest 2 weeks before Christmas that I recall. And I have been slammed last 4 years. Have several big bids I am doing this week. Inventory is still low. I am preparing and working late and having Guys start working weekends again. I don't see it. But I listen and want to be prepared in case it does. My truck payments in 08 were $2400 a month. And I got caught with my pants down.

 

[LargeOrangeFont]

It's been the busiest 2 weeks before Christmas that I recall. And I have been slammed last 4 years. Have several big bids I am doing this week. Inventory is still low. I am preparing and working late and having Guys start working weekends again. I don't see it. But I listen and want to be prepared in case it does. My truck payments in 08 were $2400 a month. And I got caught with my pants down.

Have you bought a belt? And a hat?

 

[77charger]

I find it cheaper to fix my 04 2500hd as something begins to fail. 6.0 gasser is easy to work on.

 

[phuggit]

We had a repo truck circling our hood this evening. I think the repo business is about to get pretty lucrative.

 

[WhatExit?]

31 checking in here.

Not directed at @Sportin' Wood but.

I don’t understand paying 50k plus in cash. Why tie up the liquidity? I’d rather the bank own the deprecating asset than me.

And yes the interest over 5 years is worth it to me. Even if you take the write off out of the equation.

Especially if the interest rate is low which most are compared to current loans

 

[Go-Fly]

I paid cash for my first new car in 1978. A black and silver El Camino SS for $4559.00. I worked after school at a grocery store and made brass slide carburetors for bong pipes on our neighbor's lathe. I've never made a car payment in my life and I've never owned a used car outside of the classics. I'm sure there are a few people on here that made their money the true old fashion way, daddy gave it to them. The rest that are rolling bank, made their own opportunities and that is the key.

 

[Melloyellovector]

I’d be happy with 700 truck payment, just sayin

 

[NicPaus]

Have you bought a belt? And a hat?

I have 30 hats already. Been having to buy bigger pants. Maybe the recession will help me lose this extra 50 lbs I gained Lol. I need that 2010 Top a Ramen diet to get back to where I was.

 

[Riverbottom]

Must be nice to be able to pop $50k+ cash down on a vehicle as is the RDP way. I'd love to hear how the experts suggest building a large enough cash reserve in today's economy when you have to pay current mortgage/rent, insurances, cell, utilities, food for a family, etc.

Extra bonus.... throw in some family medical issues on top of that since they are pretty common place now-a-days.

Guess I shouldn't have opened my mouth. So, to defend my statement, I moved to Parker at age 29 in 1989. With debt. I had a 16' outboard a stand-up jet ski, and loved waterskiing. Having a big truck payment, credit cards etc., I met a guy (soon to be my best friend, and best man at my future wedding). One Sunday when we were at a sandbar with his older Biesemeyer flatbottom., a young guy with a new California Performance came up and challenged my friend to a race. Brad sitting in a beach chair having a beer asked " is that a pink slip boat or a payment book" The young man looked puzzled, and Brad said " a pink slip beats a payment book any day, come back when it is yours and we will race "

For some reason that struck a chord with me, I quit having the I wants, and finished paying off my debts. After that I have lived COD as best as I could.
It was life changing, and really shaped the next thirty years of my life. I worked as a painter in the auto body business, and purchased the shop from my employer when he wanted to retire, no money down.

Not with family money, but I have helped many family members. I have had some really nice boats and vehicles over the last several years, and am very thankful.

I have tremendous respect for several members I have never met. #1 is Monkeywrench (I consider him a friend, the man has great family values) TCHB and Skinny Tire Asshole seem to be on the right track and good mentors. Special thanks to REGOR in the dungeon. I would help RD and Stacey in a minute (old neighbors) .My down river neighbor Barry, that I don't spend enough time with.

I hope everyone has an awesome Christmas.

 

[Icky]

I’d be happy with 700 truck payment, just sayin 

Right, we bought around the same time.

I guess to me I don’t need that new truck. Plenty out there that have been well taken care of and had the depreciation already hit.

I sold my 2013 with 120k miles for around 40k. I could sell my 2022 with 13k miles for what I paid for it right now

This. And a $50k truck powered by gasoline with cloth seats is not allowed here.

I wanted what I wanted, besides that a gas truck won't tow my trailer.

 

[LargeOrangeFont]

Right, we bought around the same time.

I sold my 2013 with 120k miles for around 40k. I could sell my 2022 with 13k miles for what I paid for it right now

I wanted what I wanted, besides that a gas truck won't tow my trailer.

That is pretty much why car payments are over $700.. people want what they want. There is nothing wrong with that.

 

[shintoooo]

I’m going to save all my hard earned money so I can take it with me when I die.

 

[grumpy88]

How many of you guys are self employed? Do you understand good debt vs. bad debt?

Nope !

 

[Mr. C]

I’m going to save all my hard earned money so I can take it with me when I die.

With no Will or trust. So the family can fight over it and have it 18 months later. Maybe. . I like your sense of humor. Lol

 

[Go-Fly]

I’m going to save all my hard earned money so I can take it with me when I die.

Are you going to be cremated or take a dirt nap? Asking for a friend.

 

[PlumLoco]

First car was a 1970 GTX that I paid $800 in 1978 from money earned working min. wage
First brand new car was a 1985 Toyota truck. Toyota of Corona ran an ad advertising "payments of $89 mo." for a stripper. I walked in and said I want that exact same truck in an extra cab. So for under $100 mo. I had a truck that would take me 200,000 miles (with no radio, manual windows, manual trans, and no A/C)
Next new car wasn't until I got married and got a smoking deal on a new Grand Prix from a friend who was head of sales at Gay Hood Pontiac in Riverside. The car was used as the pace car at the opening of the speedway in Fontana. Arrest me red in color and supercharged V6. Had cool one-off graphics on the doors. Loved the car but it got Lemon Lawed after much back and forth in court.
2003 and after "the babies" have outgrown the back seat of my Dodge truck we look for something with a real back seat that is easy to get car seats in and out of and bought a turbo PT Cruiser. They couldn't move the manual trans car after 8 months and so we got it for $21K. We just gave it to our son with 175k on it.
2007 saw a Dodge MegaCab advertised as "$12,000 off of MSRP of $34,000." Called my wife and told her to go buy this truck. The price is already negotiated. Hurry.
Today it has 198,000 miles on it. Other than batteries, one alternator, and one fuel pump it needed nothing for over 150k miles.
2018. we bought a Hyundai Sonata with 18k miles for $16,000. I chose a loan at 3.2% rather than pay cash just because the payment was so low, I figured I'd hold some money in the bank for a PM/stock buying opportunity.

I am currently looking for a vehicle for some light overlanding. Jeeps, 4runners, Explorers, that kind of thing. I have a self-imposed ceiling of about $20k. I couldn't ever bring myself to have a payment over $500, and paying cash is always more palatable.

 

[SOCALCRICKETT]

I recently did an evaluation and change up of the vehicles for this reason. My wife and I work in blythe and live in temecula. We both have the same commute just different days.


Here is what i found works for my situation. I ended up getting a 2012 duramax dually that was a low mile truck, paid for it cash, did the motor and put it together the right way with the plan of it being my hauler that I will keep till it gets wrecked or stolen.

My wife's car I decided to bite the bullet on and got her a new lexus f sport hybrid (and yes it is a $708 a month payment). She needs something new that I turn key and has a warranty. Hell in 6 months she has already racked up 18k miles on it.

As for me, I bought a $2500 beater ex cop car to run the wheels off. This will be the sacrificial vehicle, anytime I have to park in an airport parking lot or go to an area with tight parking, ill take the beater and leave the nice stuff at home.

And I have my little 2 dr tahoe to use as a fun little weekend cruiser

 

[Looking Glass]

It really is just staggering when you think about it. Normal family.. Mortgage, two car payments, all the different insurances, food, gas, child care, How the fuck do these people afford it. My god, I cringe thinking about it.

AND!!, if they are, is there any $'s left at the end of the month for Maybe an evening out?

 

[Mr. C]

AND!!, if they are, is there any $'s left at the end of the month for Maybe an evening out?

Going back in time. 3 kids. Wife stayed home and took care of EVERYTHING while I worked. Maybe seriously maybe once a month we got to go out to dinner.
Is what it is. But I’ll take that trade off with her home raising our kids as opposed to someone else.
Times are definitely different now. So I try not to judge.

 

[Paradox]

It seems crazy, I have never had a mortgage over $700 except for commercial property. Bought my wife a new Tahoe two years ago and the dealer would not let us pay cash. They are all about selling paper. Gave them 50K down, and had to sign a contract that we would not pay off the balance for 90 days. Sent the balance on day 89. When I was young cars and status were important, now they are just a means to get from point A to B. Getting older, starting to sound like my dad.

Similar kind of deal. Bought my wife a CPO a couple plus months ago. We wanted a sedan that is beter suited to multi state travel In lieu of the small SUV she had. There was a $500 rebate if I financed. Minimum amount was $7500. Dealer advised I had to carry it for at least 2 months. I split it in half and sent the 2nd payment in a couple of weeks ago. Now waiting on the pink.

 

[Go-Fly]

AND!!, if they are, is there any $'s left at the end of the month for Maybe an evening out?

I have a close friend that makes almost $1m a year and spends every dime of it as soon as he gets it. The old what if I die tomorrow. He'll retire in a travel trailer.

 

[Riverbottom]

Similar kind of deal. Bought my wife a CPO a couple plus months ago. We wanted a sedan that is beter suited to multi state travel In lieu of the small SUV she had. There was a $500 rebate if I financed. Minimum amount was $7500. Dealer advised I had to carry it for at least 2 months. I split it in half and sent the 2nd payment in a couple of weeks ago. Now waiting on the pink.

It is BS, Don't want to buy a car for several years. They are looking to make more money on selling the note than the vehicle. I don't understand why they wouldn't be happy with a cash sale. Well we don't have a payment

 

[Ace in the Hole]

Baffles me people can afford this.
But hey. They’re lease deals out there. 5800 down. 876 a month. 12k miles a year. And people do it. SMH

Look into what childcare costs now...that will make your head spin...

 

[Mr. C]

Look into what childcare costs now...that will make your head spin...

Oh I know. It was comparable 20 years ago with average income. Don’t know how many do it.
See my post #75.
My wife could have worked. And then we spend 90 % of her income on day care etc. why have her work. Plus the tax lady at the time said it wasn’t financially cost effective for my to wife work. The wash of income and being away from the kids to the plusses on a few extra bucks didn’t make sense.

 

[CLdrinker]

I’d like to hear it also. I think comes with a minimum of 350k plus annual income.

It don’t take near that that much.

 

[btaco35]

https://twitter.com/i/web/status/1603794722140688384

 

[counterpart7]

I thought about this the other day, but what changed that people can’t buy base models of any cars these days?

Everyone needs a Denali/Platinum/Limited or nothing at all.

Even my parents have become those people. Grew up in cloth interior base model 1500s and Suburbans, now they won’t even consider anything that doesn’t say Denali on the side. I don’t really get it.

 

[Mr. C]

It don’t take near that that much.

Do you have a 200k boat A couple utv’s. Maybe a fifth wheel. A few motorcycles. ?????
If you and don’t take in near that much. Please tell me how you do it. Lol.

 

[LargeOrangeFont]

Do you have a 200k boat A couple utv’s. Maybe a fifth wheel. A few motorcycles. ?????
If you and don’t take in near that much. Please tell me how you do it. Lol.

Actually if you don’t have all that stuff it’s pretty easy to save money.

 

[CLdrinker]

This. And a $50k truck powered by gasoline with cloth seats is not allowed here.

Hey hey easy there! I’m just a baller on a budget. A small fuckin budget

 

[Ace in the Hole]

Oh I know. It was comparable 20 years ago with average income. Don’t know how many do it.

Other than my house, its the most expensive bill we have every month. and its not that far off from surpassing the house.

 

[Mr. C]

Other than my house, its the most expensive bill we have every month. and its not that far off from surpassing the house.

I get it. Not trying to compare eras. My kids late 80’s to mid 2000 I was fortunate to be able to have my little woman stay home. And gave up the extra money. Today I don’t know if there is any extra money for a younger family. I still say. If you can give up some things and get by comfortably with your wife being home with the kids. Try to do it. Yes I know easier said than done.

 

[SOCALCRICKETT]

Going back in time. 3 kids. Wife stayed home and took care of EVERYTHING while I worked. Maybe seriously maybe once a month we got to go out to dinner.
Is what it is. But I’ll take that trade off with her home raising our kids as opposed to someone else.
Times are definitely different now. So I try not to judge.

I like your mindset, my wife and are fortunate in that our work schedule is a 48/96. So she works a 48 while i have our son, I come into relieve her and work my 48, then we have 2 days off together. If we didn't have this schedule we would just have to do a relocate and rearrange. I have a hard time morally having someone else watch my kid for extended time, that not fair to him

 

[boatpi]

Omg, life changes so much. My first new car
Was a 1977 Toyota Corolla. lift back, 5 speed and a great car. Payments $96 a month. I just made
It happen, never broke but it was the victim of hit and run twice. Jinxed indeed. It was my only car and a daily commute and driver.

Now flash forward to 2022, the Lambo payment os $1950 a month and I make double+ payments every month.
And that is with 200K down. I try my best to take it out every weekend, sometimes not.
I still work 5-7 days a week, but at least semi retirement is planned in 2023, for the second time.

If I fall over dead tomorrow, I have had a blessed life and given a lot to others in my life. But I plan 20-30 more years with the love of my life.

 

[Ace in the Hole]

Actually if you don’t have all that stuff it’s pretty easy to save money.

Truth...freaking insurance and maintenance costs every year are ridiculous....

I get it. Not trying to compare eras. My kids late 80’s to mid 2000 I was fortunate to be able to have my little woman stay home. And gave up the extra money. Today I don’t know if there is any extra money for a younger family. I still say. If you can give up some things and get by comfortably with your wife being home with the kids. Try to do it. Yes I know easier said than done.

Yea we've had those conversations but she has a specialty career and wants to pursue what she went to school for so I'm not winning that argument. My kid goes to a pretty good Montessori school, and she gets a lot from it I think. I limit the time she is there though when im in town. WFH has its perks so unless im tied up in meetings she stays with me...cost is the same whether she goes or not though...

 

[Mr. C]

I like your mindset, my wife and are fortunate in that our work schedule is a 48/96. So she works a 48 while i have our son, I come into relieve her and work my 48, then we have 2 days off together. If we didn't have this schedule we would just have to do a relocate and rearrange. I have a hard time morally having someone else watch my kid for extended time, that not fair to him

My schedule was a shit show for 3-4 months out of the year. I was doing 95-110 hours a week for those months. Many times going in on a Wednesday and not home till Saturday morning. . But as said at least my wife was with the kids. Like you. If possible I want to my family raise my kids.
Sometimes that just is t possible nowadays and get that also.

 

[WTR&PWR]

Going back in time. 3 kids. Wife stayed home and took care of EVERYTHING while I worked. Maybe seriously maybe once a month we got to go out to dinner.
Is what it is. But I’ll take that trade off with her home raising our kids as opposed to someone else.
Times are definitely different now. So I try not to judge.

I’m fortunate too in the same aspect. I Work my ass off, my wife raises our girls and I have no stress with childcare, or childcare expenses.

We have been able to do a lot of fun things within reason and minimal debt but for me it’s been a few simple things:

I try to only buy things I’ll truly be happy with. If not I just don’t buy it. Because of that, I keep my cars for a long time and that helps a bit with depreciation. Also, if you buy good stuff, and take care of it, it will likely have better resale when you do move on.

I have a beater I log miles in and keep the nicer cars nice.

Many of my decisions I ask myself “will this make my life easier or harder?” If I am honest with myself many of the items I think I want only end up being more headaches than they are worth. A boat sometimes is more of a headache but we all have our vice’s.

 

[lbhsbz]

How many of you guys are self employed? Do you understand good debt vs. bad debt?

I'm self employed and the only debt I have personally is my mortgage. Every PO I create through the business I print out, fold it up with a check inside, and mail it off.....

The only good debt is no debt.

 

[yz450mm]

I'm self employed and the only debt I have personally is my mortgage. Every PO I create through the business I print out, fold it up with a check inside, and mail it off.....

The only good debt is no debt.

Have you Incorporated yet? If not, you definitely should ASAP.

There are a lot of purchases that offset corporate tax liabilities, and many of those (large) purchases are made in November or December. If you choose to take the full write off for the first year, it means your company's tax liability gets reduced by that full purchase price (disclaimer: I think?)

Theoretical example:

Tax guy: Your company is going to owe big bucks in taxes this year. You should probably go buy something.

Owner: Ok, the corp just bought a new truck for 75k for business purposes.

Tax guy: cool, we will take full depreciation this year and the corp only owes (a whole lot less) in taxes. Enjoy your new truck. By the way, you now don't have to pay the IRS stupid money for nothing.

I'm sure this will get picked apart by the tax people, but this is just how I understand it.

 

[sml]

Must be nice to be able to pop $50k+ cash down on a vehicle as is the RDP way. I'd love to hear how the experts suggest building a large enough cash reserve in today's economy when you have to pay current mortgage/rent, insurances, cell, utilities, food for a family, etc.

Extra bonus.... throw in some family medical issues on top of that since they are pretty common place now-a-days.

Comments like this….lol

how about work harder? Get a different /another job? Work for yourself? Take risks that can set you up for financial independence? The only thing holding you back is you.

My family and I haven’t always been able to live how we do today but what i can tell you is that i did put everything at risk for it for a number of years. …including relationships with friends, my kids, wife and also including almost costing me my life 3 months ago, and i had the medical bills you talk about. And i am positive plenty more on rdp has done it the same way and knows exactly what i’m talking about.

Still a couple of minor bumps here and there but that’s life. Everyone has a different path to their success so when you say “must be nice” i am going to have to say, yes…it is.

 

[PRORACER7474]

Curious what the average health care payment is a month?? You can have health insurance or a new car.. Crazy part on that is registration and insurance on top of it. No thank you,

1372 a month the wife and me 7500 deductable

 

[Outdrive1]

Comments like this….lol

how about work harder? Get a different /another job? Work for yourself? Take risks that can set you up for financial independence? The only thing holding you back is you.

My family and I haven’t always been able to live how we do today but what i can tell you is that i did put everything at risk for it for a number of years. …including relationships with friends, my kids, wife and also including almost costing me my life 3 months ago, and i had the medical bills you talk about. And i am positive plenty more on rdp has done it the same way and knows exactly what i’m talking about.

Still a couple of minor bumps here and there but that’s life. Everyone has a different path to their success so when you say “must be nice” i am going to have to say, yes…it is.

Must be nice to say “yes…… it is.”

 

[Ace in the Hole]

Comments like this….lol

how about work harder? Get a different /another job? Work for yourself? Take risks that can set you up for financial independence? The only thing holding you back is you.

 

[Melloyellovector]

Right, we bought around the same time.

I sold my 2013 with 120k miles for around 40k. I could sell my 2022 with 13k miles for what I paid for it right now

I wanted what I wanted, besides that a gas truck won't tow my trailer.

People that say money can’t buy happiness. Have never had money. Lol
Way back I used to say who needs power windows,power locks, ac, and automatic. Then it was who needs heated steering wheel and seats thats just stupid. Then it was cooled/vented seats, come on that’s just silly. Driving around 50k miles per year, I’ll tell you what. I don’t care how much that truck is with every option, Im gonna drive it with a smile, until it breaks down again. Ram care can fuck right off.