BMW/LEXUS selling too fast ?

[Coronita]

[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….

[Coronita]

[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….

[Allan from Fallbrook]

FLU: My wife used to do financial planning before becoming a stay-at-home mom and I remember going through her programs on savings and retirement one time. It was terrifying. The number of Americans that are prepared for retirement is only about 4 – 6% (meaning you have sufficient cash flow, savings, retirement funds, etc to carry you through).

I watch the number of people that pay for groceries with credit cards and locally that number is about 6 out of 10. Not debit cards, credit cards.

For far too many years, people equated wealth with credit and the two have nothing to do with each other. The people really getting squeezed are those that relied on having access to all that credit and now it’s being taken away.

[Allan from Fallbrook]

FLU: My wife used to do financial planning before becoming a stay-at-home mom and I remember going through her programs on savings and retirement one time. It was terrifying. The number of Americans that are prepared for retirement is only about 4 – 6% (meaning you have sufficient cash flow, savings, retirement funds, etc to carry you through).

I watch the number of people that pay for groceries with credit cards and locally that number is about 6 out of 10. Not debit cards, credit cards.

For far too many years, people equated wealth with credit and the two have nothing to do with each other. The people really getting squeezed are those that relied on having access to all that credit and now it’s being taken away.

[Allan from Fallbrook]

FLU: My wife used to do financial planning before becoming a stay-at-home mom and I remember going through her programs on savings and retirement one time. It was terrifying. The number of Americans that are prepared for retirement is only about 4 – 6% (meaning you have sufficient cash flow, savings, retirement funds, etc to carry you through).

I watch the number of people that pay for groceries with credit cards and locally that number is about 6 out of 10. Not debit cards, credit cards.

For far too many years, people equated wealth with credit and the two have nothing to do with each other. The people really getting squeezed are those that relied on having access to all that credit and now it’s being taken away.

[Allan from Fallbrook]

FLU: My wife used to do financial planning before becoming a stay-at-home mom and I remember going through her programs on savings and retirement one time. It was terrifying. The number of Americans that are prepared for retirement is only about 4 – 6% (meaning you have sufficient cash flow, savings, retirement funds, etc to carry you through).

I watch the number of people that pay for groceries with credit cards and locally that number is about 6 out of 10. Not debit cards, credit cards.

For far too many years, people equated wealth with credit and the two have nothing to do with each other. The people really getting squeezed are those that relied on having access to all that credit and now it’s being taken away.

[Allan from Fallbrook]

FLU: My wife used to do financial planning before becoming a stay-at-home mom and I remember going through her programs on savings and retirement one time. It was terrifying. The number of Americans that are prepared for retirement is only about 4 – 6% (meaning you have sufficient cash flow, savings, retirement funds, etc to carry you through).

I watch the number of people that pay for groceries with credit cards and locally that number is about 6 out of 10. Not debit cards, credit cards.

For far too many years, people equated wealth with credit and the two have nothing to do with each other. The people really getting squeezed are those that relied on having access to all that credit and now it’s being taken away.

[kev374]

[quote=AN]So to afford a $20k car, you’d need a net worth a 1/3 of that?[/quote]

it’s not a linear scale that way. It’s needs vs wants. The first $15-20k of car may be a *need*, you need decent transport for work etc. But the other $40k is then fluff that can be afforded only if you have all your other more important financial priorities set…savings, retirement, emergency fund, kids college, home paid off, investments etc. etc.

[kev374]

[quote=AN]So to afford a $20k car, you’d need a net worth a 1/3 of that?[/quote]

it’s not a linear scale that way. It’s needs vs wants. The first $15-20k of car may be a *need*, you need decent transport for work etc. But the other $40k is then fluff that can be afforded only if you have all your other more important financial priorities set…savings, retirement, emergency fund, kids college, home paid off, investments etc. etc.

[kev374]

[quote=AN]So to afford a $20k car, you’d need a net worth a 1/3 of that?[/quote]

it’s not a linear scale that way. It’s needs vs wants. The first $15-20k of car may be a *need*, you need decent transport for work etc. But the other $40k is then fluff that can be afforded only if you have all your other more important financial priorities set…savings, retirement, emergency fund, kids college, home paid off, investments etc. etc.

[kev374]

[quote=AN]So to afford a $20k car, you’d need a net worth a 1/3 of that?[/quote]

it’s not a linear scale that way. It’s needs vs wants. The first $15-20k of car may be a *need*, you need decent transport for work etc. But the other $40k is then fluff that can be afforded only if you have all your other more important financial priorities set…savings, retirement, emergency fund, kids college, home paid off, investments etc. etc.

[kev374]

[quote=AN]So to afford a $20k car, you’d need a net worth a 1/3 of that?[/quote]

it’s not a linear scale that way. It’s needs vs wants. The first $15-20k of car may be a *need*, you need decent transport for work etc. But the other $40k is then fluff that can be afforded only if you have all your other more important financial priorities set…savings, retirement, emergency fund, kids college, home paid off, investments etc. etc.

[carlsbadworker]

[quote=Allan from Fallbrook]
I watch the number of people that pay for groceries with credit cards and locally that number is about 6 out of 10. Not debit cards, credit cards.
[/quote]

I don’t know why you have such an issue with the credit card users. Ever heard of credit card rewards? It is a blessing that so many others are paying credit card companies such an enormous amount of fees each month… because they essentially subsidize the rewards that I’m receiving.

[carlsbadworker]

[quote=Allan from Fallbrook]
I watch the number of people that pay for groceries with credit cards and locally that number is about 6 out of 10. Not debit cards, credit cards.
[/quote]

I don’t know why you have such an issue with the credit card users. Ever heard of credit card rewards? It is a blessing that so many others are paying credit card companies such an enormous amount of fees each month… because they essentially subsidize the rewards that I’m receiving.

[carlsbadworker]

[quote=Allan from Fallbrook]
I watch the number of people that pay for groceries with credit cards and locally that number is about 6 out of 10. Not debit cards, credit cards.
[/quote]

I don’t know why you have such an issue with the credit card users. Ever heard of credit card rewards? It is a blessing that so many others are paying credit card companies such an enormous amount of fees each month… because they essentially subsidize the rewards that I’m receiving.

[Author]

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