The secretary for my IT department recently purchased a $29,990 2014 Mercedes CLA-250 FWD.
Yes... an hourly employee (I estimate less than $18/hr ) who was already complaining that the loan on her 2012 Chevy Equinox was too high per month... purchased a 2014 Mercedes. I can't face-punch hard enough.
I recently flew to CT from WI to buy a 2006 Audi that was exactly what I wanted. Paid cash. Under $7k. And I'm a salaried employee that makes a pretty good wage.
Summary: 21 year old secretary buys $30k car, has $900/mo apartment, makes me facepunch myself so hard I can't comprehend how her life works.
easy to understand how, main question is why. i bet she did this:http://www.washingtonpost.com/business/get-there/when-it-comes-to-car-loans-it-pays-to-stay-in-the-fast-lane/2014/11/06/da5d5522-646f-11e4-9fdc-d43b053ecb4d_story.html?hpid=z6
i have a friend who is very similar: she lies to stay in low income housing. she was also upside down on a super predatory car loan, the type that is illegal in my state thank god. basically it was for six years and you could not prepay. her loan wasnt for the purchase price of the car, it was for the car plus the financing. it turns out they also let you skip a month, when ever you feel like things are little tight budgetwise that month.
so she skipped many months. which they were more than willing to extend the life of the loan out for. and then this car gets engine knock or crack something or other.
she decides to ( as per recommendation of the used car salesmen) purchase a used BMW( i have no idea the model, it went straight over my head.) then once she begins making payments on the new car does a voluntary surrender ( repossession) of the old underwater car.
cause hey, credit doesnt matter anymore, she has a new car.
she was super proud of the 12% APR, she was able to secure as she started giving me car loan advice. i didnt have the heart to tell her i got the 1.9% financing. of course the loan is for 60 months. but she went on and on about how bmws are such a great deal, and they retain their value. all i could think of was the students loans and plastic surgery loans she purposely either defaulted on or defers, because 'shes too poor.'
whoops went off on a tangent