Author Topic: One of my close friends . . . and the insane car purchase. .  (Read 6744 times)

Jenny1974

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One of my close friends . . . and the insane car purchase. .
« on: October 23, 2017, 06:55:22 AM »
2015 SUV  . . . . $500 a month . . . for SEVEN years.

Words fail me.

KodeBlue

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #1 on: October 23, 2017, 07:26:35 AM »
Not even a new vehicle? a 2015? $42000?
Tell me I misread your post.

Jenny1974

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #2 on: October 23, 2017, 07:27:50 AM »
Not even a new vehicle? a 2015? $42000?
Tell me I misread your post.

Oh how I wish it weren't so . . .  but you read that correctly.  Not even a new vehicle!!  I was speechless.

slugline

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #3 on: October 23, 2017, 10:29:21 AM »
Is this someone who is simultaneously rich and credit unworthy?

paddedhat

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #4 on: October 23, 2017, 11:03:13 AM »
Is this someone who is simultaneously rich and credit unworthy?

Doubtful. The few rich folks that I associate with tend to have an idea what their trade is worth, and what they want to spend on a replacement. They get the deal done and cut a check. No used, no financing.

Jenny1974

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #5 on: October 23, 2017, 11:28:51 AM »
Is this someone who is simultaneously rich and credit unworthy?

No . . . not rich . . . just likes to be sure people think she is.  She's in debt up to her eyeballs but . . . hey . . . people will be impressed with her SUV I guess so that makes it ok.

boyerbt

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #6 on: October 23, 2017, 11:32:59 AM »
Is this someone who is simultaneously rich and credit unworthy?

No . . . not rich . . . just likes to be sure people think she is.  She's in debt up to her eyeballs but . . . hey . . . people will be impressed with her SUV I guess so that makes it ok.

Does your friend complain about being in so much debt? Was the previous car also rolled into the financing of this one?

acroy

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #7 on: October 23, 2017, 12:00:49 PM »
Ouch.
I know people with 80-month terms at over $1k/mo on high-end trucks, suvs, sports cars. Most of them are well off and can 'afford' it (in non-MMM terms), but wow.

Indexer

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #8 on: October 23, 2017, 03:50:30 PM »
Is this someone who is simultaneously rich and credit unworthy?

No . . . not rich . . . just likes to be sure people think she is.  She's in debt up to her eyeballs but . . . hey . . . people will be impressed with her SUV I guess so that makes it ok.

The sad part... no, they probably won't be impressed. If everyone is trying to pretend they are rich by driving cars they can't afford then everyone in a given peer group will end up driving similar cars. Between long term financing and very low interest rates its more manageable than ever to drive nice cars that you really can't afford.

End result: Driving that nice car just makes you look average.

paddedhat

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #9 on: October 23, 2017, 04:30:27 PM »
Is this someone who is simultaneously rich and credit unworthy?

No . . . not rich . . . just likes to be sure people think she is.  She's in debt up to her eyeballs but . . . hey . . . people will be impressed with her SUV I guess so that makes it ok.

The sad part... no, they probably won't be impressed. If everyone is trying to pretend they are rich by driving cars they can't afford then everyone in a given peer group will end up driving similar cars. Between long term financing and very low interest rates its more manageable than ever to drive nice cars that you really can't afford.

End result: Driving that nice car just makes you look average.

The funny part is that a lot of wannabees will spend high end Accord or Camry money, on a new low end German car, just for the badge.  Mercedes has been doing it for at least three decades and their cheapest cars are always shit. Now they have a $30K sedan and SUV out, and the automotive press and consumer reviews concur that they are pretty poor vehicles with impressive emblems. Spend less for the same size Camry, Accord, CRV or RAV4, and end up with a much better car, but no impressive three point star on the hood. So sad.

SeaEhm

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #10 on: October 23, 2017, 05:43:04 PM »
What car is it?

Usually I don't mind financing, but seven years on a used car is less than optimal financing rates even with excellent credit. 

I guess they are hoping that the bull market continues for 7 years so they can offset interest with investment gains.

Watch her have bad credit and the car isn't even the $42k that someone calculated but is a $28k used GMC Acadia or something, hahahahaha

Travis

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #11 on: October 23, 2017, 07:41:36 PM »

Watch her have bad credit and the car isn't even the $42k that someone calculated but is a $28k used GMC Acadia or something, hahahahaha

Some of the nicest cars in the US Army are owned by the youngest troops and they're paying 18% interest for that privilege.

lbmustache

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #12 on: October 23, 2017, 08:57:05 PM »

Watch her have bad credit and the car isn't even the $42k that someone calculated but is a $28k used GMC Acadia or something, hahahahaha

Some of the nicest cars in the US Army are owned by the youngest troops and they're paying 18% interest for that privilege.

So, so true.

Njdealguy

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #13 on: October 24, 2017, 05:56:02 AM »
Im guessing the actual SUV purchase price was approx 35k, assuming no downpayment and 7% sales tax, the payments at 2.5% interest for 7 years work out to approximately  $500/month.

Guessing its probably a mid tier Lexus RX350 or Infiniti/Acura/x5 with a original sticker price of at least 60k and maybe a returned lease vehicle (paying 40% off MSRP for a 2 yr old car is actually good).   If all these factors are correct I'd think its not a terrible deal for the right kind of people but certainly not someone who instead of having the cash needs a 7 year loan and stretch themselves!

In contrast, if this person has enormous amounts in cash and/or invested and decided to take a low interest 7 yr loan based on out earning that in investment yields, then too I'd give her benefit of doubt, but am guessing thats not the case!
« Last Edit: October 24, 2017, 05:58:37 AM by Njdealguy »

The Guru

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #14 on: October 24, 2017, 05:56:46 AM »
What car is it?

Usually I don't mind financing, but seven years on a used car is less than optimal financing rates even with excellent credit. 

I guess they are hoping that the bull market continues for 7 years so they can offset interest with investment gains.

Watch her have bad credit and the car isn't even the $42k that someone calculated but is a $28k used GMC Acadia or something, hahahahaha

Haha! I have a feeling their "investment" is sitting in their driveway.

Jenny1974

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #15 on: October 24, 2017, 06:46:16 AM »
From what I know . . . the Toyota Sequoia was somewhere around $45K and the interest rate was like 5.25%.   If I recall correctly it had about 30,000 miles on it.  She only has two kids and she's not married so I'm not sure why she thinks she needs a vehicle of this size.  I tried to point out to her that her oldest would be driving next year so that would probably significantly reduce the amount of carting around she would have to do . . .  but she mumbled something about needing to haul her dogs or whatever.

This is just but one instance of the financial insanity in her life.

Just glad I'm not living with those sort of debts!

Njdealguy

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #16 on: October 24, 2017, 08:47:58 AM »
From what I know . . . the Toyota Sequoia was somewhere around $45K and the interest rate was like 5.25%.   If I recall correctly it had about 30,000 miles on it.  She only has two kids and she's not married so I'm not sure why she thinks she needs a vehicle of this size.  I tried to point out to her that her oldest would be driving next year so that would probably significantly reduce the amount of carting around she would have to do . . .  but she mumbled something about needing to haul her dogs or whatever.

This is just but one instance of the financial insanity in her life.

Just glad I'm not living with those sort of debts!

Wow, 45k means 535 per month over 7 years based on zero interest!  So accounting for sales tax and other stuff monthly payment must be more like 600 or 650! 

And no luxury brand to show for it, think a brand new Sequoia can be had for around 45k!

Njdealguy

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #17 on: October 24, 2017, 08:49:44 AM »
From what I know . . . the Toyota Sequoia was somewhere around $45K and the interest rate was like 5.25%.   If I recall correctly it had about 30,000 miles on it.  She only has two kids and she's not married so I'm not sure why she thinks she needs a vehicle of this size.  I tried to point out to her that her oldest would be driving next year so that would probably significantly reduce the amount of carting around she would have to do . . .  but she mumbled something about needing to haul her dogs or whatever.

This is just but one instance of the financial insanity in her life.

Just glad I'm not living with those sort of debts!

Wow, 45k means 535 per month over 7 years based on zero interest!  So unless made a sizable down payment, accounting for sales tax and other stuff monthly payment must be more like 600 or 650! 

And no luxury brand to show for it, think a brand new Sequoia can be had for around 45k!

Just Joe

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #18 on: October 24, 2017, 10:58:58 AM »

Watch her have bad credit and the car isn't even the $42k that someone calculated but is a $28k used GMC Acadia or something, hahahahaha

Some of the nicest cars in the US Army are owned by the youngest troops and they're paying 18% interest for that privilege.

It was the same way when I was in the service several decades ago.

kendallf

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #19 on: October 24, 2017, 11:44:41 AM »

Watch her have bad credit and the car isn't even the $42k that someone calculated but is a $28k used GMC Acadia or something, hahahahaha

Some of the nicest cars in the US Army are owned by the youngest troops and they're paying 18% interest for that privilege.

It was the same way when I was in the service several decades ago.
I bought the only new vehicle I've ever owned as a 22 year old E-3.  At least it was a $7k mini truck instead of something painfully stupid.

eddiejoe

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #20 on: October 24, 2017, 11:58:26 AM »
Is this someone who is simultaneously rich and credit unworthy?

No . . . not rich . . . just likes to be sure people think she is.  She's in debt up to her eyeballs but . . . hey . . . people will be impressed with her SUV I guess so that makes it ok.

The sad part... no, they probably won't be impressed. If everyone is trying to pretend they are rich by driving cars they can't afford then everyone in a given peer group will end up driving similar cars. Between long term financing and very low interest rates its more manageable than ever to drive nice cars that you really can't afford.

End result: Driving that nice car just makes you look average.

Some point in my twenties I noticed this switch in outlook. Before the switch I would see someone in a nice car and think to myself "Man, they must be loaded!",  but since the switch I see someone in a nice car and think "That's a shame, they are in so much debt"   
(I know this isn't always the case and some people in nice cars are actually rich, and good for them, but I have seen how easy it is to get financing for a car way above you means) 

Travis

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #21 on: October 24, 2017, 12:44:02 PM »

Watch her have bad credit and the car isn't even the $42k that someone calculated but is a $28k used GMC Acadia or something, hahahahaha

Some of the nicest cars in the US Army are owned by the youngest troops and they're paying 18% interest for that privilege.

It was the same way when I was in the service several decades ago.
I bought the only new vehicle I've ever owned as a 22 year old E-3.  At least it was a $7k mini truck instead of something painfully stupid.

I've watched a 20 year old E-4 buy a BMW with a pre-financing sticker price nearly twice his annual salary, another Private put rims and spinners on his beater which cost more than the car, and a Brigadier General park next to them in a late-90s Nissan hatchback.  The first two made my head hurt. The latter impressed the hell out of me.  The two of us wore the same $25 watch from the PX.  Private Smith will be impressed that Corporal Jones showed up in the BMW while First Sergeant Bob will be thinking "he'll be in my office crying about poverty in a few months."
« Last Edit: October 24, 2017, 03:50:24 PM by Travis »

Just Joe

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #22 on: October 24, 2017, 03:20:09 PM »
The "trophy lifestyle". Hopefully one of the ladies will think you're loaded...

o2bfree

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #23 on: October 24, 2017, 03:30:27 PM »
I often drive down a road that's lined with low-income apartments, and it blows my mind to see the parade of $40,000+ vehicles pulling in and out of those places. Luxury sedans, high-performance sports cars, enormous SUVs, typically with custom rims, tires, and exhaust systems, tinted windows, and high-end sound systems you can hear two blocks away. Makes me laugh and cry at the same time.

Just Joe

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #24 on: October 24, 2017, 08:48:25 PM »
Haha - I worry about parking our old car in those kinds of places. Wouldn't a $40K vehicle parked somewhere like that worry a person? Guess not.

talltexan

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #25 on: October 25, 2017, 07:03:25 AM »
Is this someone who is simultaneously rich and credit unworthy?

No . . . not rich . . . just likes to be sure people think she is.  She's in debt up to her eyeballs but . . . hey . . . people will be impressed with her SUV I guess so that makes it ok.

The sad part... no, they probably won't be impressed. If everyone is trying to pretend they are rich by driving cars they can't afford then everyone in a given peer group will end up driving similar cars. Between long term financing and very low interest rates its more manageable than ever to drive nice cars that you really can't afford.

End result: Driving that nice car just makes you look average.

Some point in my twenties I noticed this switch in outlook. Before the switch I would see someone in a nice car and think to myself "Man, they must be loaded!",  but since the switch I see someone in a nice car and think "That's a shame, they are in so much debt"   
(I know this isn't always the case and some people in nice cars are actually rich, and good for them, but I have seen how easy it is to get financing for a car way above you means) 

Pretty much because of this community, I now see someone biking in a place where it's not customary, and I think, "That person must be a millionaire!"

Dave1442397

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #26 on: October 25, 2017, 08:49:46 AM »
I often drive down a road that's lined with low-income apartments, and it blows my mind to see the parade of $40,000+ vehicles pulling in and out of those places. Luxury sedans, high-performance sports cars, enormous SUVs, typically with custom rims, tires, and exhaust systems, tinted windows, and high-end sound systems you can hear two blocks away. Makes me laugh and cry at the same time.

I lived in a townhouse complex that had some buildings reserved for low-income housing. I like cars, and noticed that a guy who lived in one of those homes was driving a 12-cylinder Mercedes S600. Now, you can get those cars for not a lot of money used, but that's because people are afraid of the hit to their wallet when something goes wrong.

Just Joe

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #27 on: October 25, 2017, 09:36:10 AM »
I still think people getting benefits ought to have their entire financial profile examined. They need reduced cost assistance? I'm glad to help - but not if they use that as an opportunity to spend recklessly. They ought to be using this period of assistance to save some money, get educated, and buy a very used "grocery getter" caliber vehicle IF they even need a car. 

And no, I have no idea how to regulate that whole mechanism.

PoutineLover

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #28 on: October 25, 2017, 09:57:37 AM »
I still think people getting benefits ought to have their entire financial profile examined. They need reduced cost assistance? I'm glad to help - but not if they use that as an opportunity to spend recklessly. They ought to be using this period of assistance to save some money, get educated, and buy a very used "grocery getter" caliber vehicle IF they even need a car. 

And no, I have no idea how to regulate that whole mechanism.
I'm pretty sure that people on benefits are not allowed to have more than like $2000 at once so driving a beater that may require expensive repairs might not work out. I'm not saying that they should be driving luxury vehicles, and I know that many used vehicles can be reliable, but the rules governing social assistance are already convoluted enough without throwing in something about minimum age of cars or acceptable brands.

Roe

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #29 on: October 25, 2017, 10:59:41 AM »
I still think people getting benefits ought to have their entire financial profile examined. They need reduced cost assistance? I'm glad to help - but not if they use that as an opportunity to spend recklessly. They ought to be using this period of assistance to save some money, get educated, and buy a very used "grocery getter" caliber vehicle IF they even need a car. 

And no, I have no idea how to regulate that whole mechanism.

Agreed, that would be preferable.

MountainFlower

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #30 on: October 25, 2017, 02:34:17 PM »


Guessing its probably a mid tier Lexus RX350 or Infiniti/Acura/x5 with a original sticker price of at least 60k and maybe a returned lease vehicle (paying 40% off MSRP for a 2 yr old car is actually good).   If all these factors are correct I'd think its not a terrible deal for the right kind of people but certainly not someone who instead of having the cash needs a 7 year loan and stretch themselves!


I just bought a 2014 Lexus RX350 and it was 27K with 48,000 miles.  We drive our cars to 250K miles and we're tired of replacing crap Honda transmissions, so switching to Toyota seemed like a must.  We live at 9000 ft elevation and drive a lot of unpaved roads, so an SUV is pretty much required. We wanted a Toyota, but my 6'4" DH cannot fit into Toyotas that aren't V8s, but does fit in the Lexus, so we kind of ended up with the RX350.   The used Lexus is also cheaper than a used Forerunner around here. Not gonna lie, it's a beautiful vehicle and nice to drive.  I look forward to driving it for the next 15 years!

SwordGuy

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #31 on: October 25, 2017, 05:29:26 PM »
I was stuck in the jury duty pool yesterday while awaiting assignment to a trial.

The guy sitting next to me was telling a friend about his plan to get out of debt in 10 years.

Then he told this story.  He didn't give a timeline but it sounded like this happened over a (very) few years: 

Wife wants a new, fancy car so he buys her a new Camry.
Wife decides she wants a big SUV instead, so he trades in the Camry for a big new SUV.
Wife then decides she doesn't like driving a big SUV so he trades it in for another new Camry.
Now wife has decided that she wants an even bigger SUV to drive and he's planning to go buy one.

Folks: Just don't marry overaged children who make bad, expensive decisions based on emotion.  Marry adults with actual reasoning ability based on facts and common sense.

vivophoenix

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #32 on: October 26, 2017, 08:49:51 AM »
I was stuck in the jury duty pool yesterday while awaiting assignment to a trial.

The guy sitting next to me was telling a friend about his plan to get out of debt in 10 years.

Then he told this story.  He didn't give a timeline but it sounded like this happened over a (very) few years: 

Wife wants a new, fancy car so he buys her a new Camry.
Wife decides she wants a big SUV instead, so he trades in the Camry for a big new SUV.
Wife then decides she doesn't like driving a big SUV so he trades it in for another new Camry.
Now wife has decided that she wants an even bigger SUV to drive and he's planning to go buy one.

Folks: Just don't marry overaged children who make bad, expensive decisions based on emotion.  Marry adults with actual reasoning ability based on facts and common sense.

sorry i read this as his fault. you can marry someone who makes bad decisions and then not enable them.

the spendy wife trope pairs nicely with the rug husband trope.  usually, there is more to the story

paddedhat

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Re: One of my close friends . . . and the insane car purchase. .
« Reply #33 on: October 27, 2017, 11:10:20 AM »
I still think people getting benefits ought to have their entire financial profile examined. They need reduced cost assistance? I'm glad to help - but not if they use that as an opportunity to spend recklessly. They ought to be using this period of assistance to save some money, get educated, and buy a very used "grocery getter" caliber vehicle IF they even need a car. 

And no, I have no idea how to regulate that whole mechanism.
I'm pretty sure that people on benefits are not allowed to have more than like $2000 at once so driving a beater that may require expensive repairs might not work out. I'm not saying that they should be driving luxury vehicles, and I know that many used vehicles can be reliable, but the rules governing social assistance are already convoluted enough without throwing in something about minimum age of cars or acceptable brands.
  The dipshit governor of Maine tried something like this. He is a simple racist, and  scapegoater of the poor, like the great Orange one. He apparently determined that anybody on "welfare" should not have a snowmobile or ATV, since they were not using their handouts wisely. The fact that you may need your thirty year old, worthless sled to travel the 1/2 mile driveway from you old mobile home to the paved road was of no concern to that asshole. The poor should not be using unnecessary toys.