[quote=kev374][quote=sdrealtor]Call me crazy but anyone who spends 80K on a car is nuts unless they have way too much money. In that case they should have too much money to spend and should be buying real estate too. HMMMMMMM…..Note to self: Hang out at Lexus/BMW dealerships.[/quote]
This is how people become poor. They blow their money on cars that depreciate 20% when they drive it off the lot. Most people who buy BMWs/Lexuses really cannot afford it by a long shot.
In my opinion to afford a $60k car you should have a net worth excluding primary residence and retirement of at least $500,000.[/quote]
Well, the irony is that a lot of americans “finance” their stuff. Whether it be a lease or taking out a loan. It’s the american way. Buy now, pay later.
With the exception of possibly Realtors, salesman,etc that makes sense to lease since it can be written off, I would say a majority of people buy cars on lay-o-way because they really can’t afford the car. It’s one thing to spend a lot of money on a car and then deprive yourself of everything else. (that would be an choice). But americans also spend money on everything else. Spend spend spend spend..
Just the other day I was at the dental office and the person in front of me was haggling with the office manager about a “payment plan” for dental work. I guess she was having some stuff done that was around $1000. She first asked if anethsia was covered by her medical insurance (uh no…)..And then said that if it would be possible for the dental office to break her into monthly payments. The office manager first said the standard payment would be $500/month…But the person insisted if she they could do $300/month install payments because she couldn’t afford a higher payment.
Then the other day I was looking at craigslist. You have a person that apparently lives in carmel valley selling his camera stuff for $1000 because he is “unemployed” and needs the money.
I use to ask if people really are that bad when it comes to managing money and cut it that close, and have no savings…I no longer ask….
