My husband wants to buy a car and I think that's a bad idea - what do you think?

One reason to buy a newer car is that there are some great safety features such as accident avoidance systems

https://www.consumerreports.org/cro/2012/04/guide-to-safety-features/index.htm

Adaptive cruise control

Brake assist

Forward-collision warning (FCW)

Pedestrian detection

Blind-spot warning (BSW)

Lane-keeping assist (LKA)

Lane-departure warning (LDW)

I have driven cars with Subaru with EyeSight and Toyota with Safety Sense are both nice and worth the money in my opinion.

1. This is the worst time to buy a car. Used car prices have skyrocketed due to reduced supply [fewer cars being produced due to COVID shutting down factories] and increased demand [no one wants to use public transport during COVID].

2. Used SUVs are especially expensive now, people are using their cars more for recreation. Driving to outdoor places with family rather than in the city [so especially high demand for SUVs].

3. I'd strike a deal with your husband. Pay off all of your student loans, and if by the end of the year your savings has increased, despite paying off these loans, then you can buy a used SUV. Ask your husband to sacrifice something he likes for it. Maybe he has to cook instead of ordering takeout, maybe he isn't allowed to play that round of golf, etc. He has to cut spending enough to get this car he wants.

Note this is all assuming you are under the age of 35. If you are over 35, you do not have enough savings, relative to age, to make this purchase.

No way you can drive around in a beat up Lexus like that piece of junk. Buy a new Lexus and build up CC debt if you have to. Gotta make sure people think you’re rich

Interesting... wrote:

Free_the_thigh wrote:

New car aside, your husband is stupid for wanting an suv.

SUVs are stupid cars that barely anyone needs.

So many people really seem to dislike SUVs on this thread. Does everyone live in urban or warm weather environments on LR?

For those of us who live in mountainous and more rural areas where the roads are pitchy and can be snow/ice covered or muddy and potholed (especially on forest service roads or in late spring) SUVs with 4WD are a game changer. Especially for year round mountain access.

You don't need a new or expensive SUV but for those conditions a reliable one with 4WD that can also haul your bike, skis or camping stuff makes life way easier.

Given the OP did not mention 4WD and just wanting more space, it seems like they are in a different situation than you. People who take their vehicles off paved road more than once per month, should definitely consider a 4WD vehicle.

Vegas dude wrote:

Leasing has worked great for me. We always have 3 cars in the driveway for the family and one of them is always on lease. Our current lease is $199 per month for 3 years with all maintenance included. We manage the mileage on the leased car so that we turn it in at precisely the agreed upon mileage.

Leasing is only a good deal if you get a lot of pleasure driving new cars and know you really aren't going to put up the hassle with selling your car yourself, private party, when you are done with it.

$7,164 to drive a new car around for 3 years is enough to buy a reliable small used car that you own and still have some leftover for maintenance. Many years later, you are usually able to sell it for over $4,000 assuming it is still running.

Unsure frugal gal wrote:

In addition to our retirement accounts, we have an investment fund to use for a downpayment if we ever decide to buy. We don't have a college fund. I should work on it at some point.

Our son is in PreK so it's the first year that we don't have to pay for school/daycare. It's a great feeling! We live in a neighborhood with great public schools so we will use the public school system.

Sounds like he is tired of being tied down by no debt.

Are you married? If so, start saving for your impending divorce. Adding chores to earn a new toy might work for a seven year old.

Please provide an example of a car worth $4k today that was only worth $7k 6-8 years ago. Not happening.

briswiss wrote:

No way you can drive around in a beat up Lexus like that piece of junk. Buy a new Lexus and build up CC debt if you have to. Gotta make sure people think you’re rich

* The car is old, but its better than a lot of new cars that I drive on trips where I need to rent a car.

* Also, it's not beat up. No dents and only 1 scratch.

* In addition, its not a piece of junk. It is a Lexus. And a lot nicer than a lot of new cars.

It has driver and passenger side airbags, and seat side airbags. I hardly have any repairs. After the starter motor went, I was able to buy a new one online and replace it myself without much trouble.

Car makers try to brainwash you into believing that you need a new car, so you'll buy a new car, so that they can make money. It's a lot cheaper to stick with your old one and make repairs. The design of the car has been perfected many years ago. The only way they can convince you to buy a new one is to add safety features. One new safety feature each year to give you a reason to buy a new car.

The original poster sounds like me--allergic to debt. Congratulations on your intelligent view of money. I would tell your husband that it's sexy to pay cash. Maybe it's because I'm a runner, with discipline and a tolerance for delayed gratification. Save-for-car, then buy-the-car. Credit cards bad.

Imagine the look on the salesman's face when I told him I didn't need to hear about all his financing options. You'd have thought I was a drug dealer or something the way he reacted. Seven years later the car runs great (99,800 miles) and I have no urge for another, even though the money is in the bank. Best of luck.

He's embarrassed to drive around in a car with "cosmetic" issues. Nobody wants to be that Dad who shows up to soccer practice in an old, beat up car when the other parents all have nice new SUVs. It shouldn't be that way, but that's just how the world works.

Not playing golf, or not eating out, is not a chore. It's asking your husband to save money by not spending it on other things he wants. If you aren't willing to sacrifice things for the things that are most important to you, I think you're the one who needs to save for your impending divorce.

Or even better, put $2,000/yr in a special account for transport. Link your public transport card, uber, car-sharing account, and a special credit card to this account which you use to rent cars (get the card that has the best rental car insurance protections associated with it). $2,000/yr is roughly the cost of maintaining and owning a car - insurance, registration, maintenance, service (even excluding gas). By pre-loading the account, you will get in the mind set of using uber, car rentals, etc liberally, and you'll do better being carless than if you don't pre-pay for this. This only works in places with ok-ish public transport. Also great for families that want to own only one car.

Safety Features wrote:

One reason to buy a newer car is that there are some great safety features such as accident avoidance systems

https://www.consumerreports.org/cro/2012/04/guide-to-safety-features/index.htm

Adaptive cruise control

Brake assist

Forward-collision warning (FCW)

Pedestrian detection

Blind-spot warning (BSW)

Lane-keeping assist (LKA)

Lane-departure warning (LDW)

I have driven cars with Subaru with EyeSight and Toyota with Safety Sense are both nice and worth the money in my opinion.

First thing I did when I got my new car was turn all of that garbage off.

impending divorce wrote:

Disgusted wrote:

Are you married? If so, start saving for your impending divorce. Adding chores to earn a new toy might work for a seven year old.

Not playing golf, or not eating out, is not a chore. It's asking your husband to save money by not spending it on other things he wants. If you aren't willing to sacrifice things for the things that are most important to you, I think you're the one who needs to save for your impending divorce.

You completely missed my point. You are advising this woman to treat her husband like a child. I assume that you are not actually married. Best leave it that way.

Technically spending anything on a car beyond your basic transportation needs is above and beyond what you need.

My wife and I are in the same income range as you but older. We will be able to get our kids through college with savings and have a retirement plan somewhere between healthy and adequate. House is paid off.

We were never rich and often sacrificed liquidity for the long term. But mostly we didn’t fritter our money away on cars. Used accord is the fanciest car we have ever had.

Americans are singularly car obsessed to our financial detriment. The fact that people even mutter the words car and investment in the same sentence speaks volumes.

You are on the right track. Don’t do a u-turn. Stay the course.

You could buy the same car for just a little bit more per month. And then you own it. And car payment done. For many years afterwards. And you still have the value of the car if you sell.

It's absurdly cheaper to do things this way. I am sorry but you are wrong.

The idea of always having so many new cars. Geesh americans are weird about that. In almost every other country they keep cars way longer. Many years. And it's way cheaper and more eco friendly.

There is some argument for investing the amount you would've put towards owning the car by leasing instead of buying. I think the math still is in favor of buying in this case. And that is saying a lot about how bad leasing is.

You can do almost all of that with a sedan lol.

Grocery shopping for 50 people? Sure, no. But c'mon how much space do you think groceries take haha.

asdfgh wrote:

Technically spending anything on a car beyond your basic transportation needs is above and beyond what you need.

My wife and I are in the same income range as you but older. We will be able to get our kids through college with savings and have a retirement plan somewhere between healthy and adequate. House is paid off.

We were never rich and often sacrificed liquidity for the long term. But mostly we didn’t fritter our money away on cars. Used accord is the fanciest car we have ever had.

Americans are singularly car obsessed to our financial detriment. The fact that people even mutter the words car and investment in the same sentence speaks volumes.

You are on the right track. Don’t do a u-turn. Stay the course.

1. Choice between consumption or savings.

2. If consumption, choice how to finance.

2a. Recommend pay for car, no loan. Lack of debt impacts psychology for all other decisions.

3. If consumption, choice what to finance.

3a. Henry Ford's assembly line made cars affordable, replacing the horse.

3b. USA is spread out, and a car (like the horse) is almost indispensable.

3c. Public transportation or hitch-hiking is not preferred.

3d. USA was the land of opportunity, replacing the system of wealth by heredity and title.

3e. USA focused on sales rather than quality: USA cars were built to last 50k miles, while cars in EU (such as German cars) were built to last 150k.

3f. Quality of roads in USA are far worse that those constructed in EU, and this is on purpose.

Therefore, the shiny new car was a symbol of succeeding in the land of opportunity.

Those who were very successful could afford the higher quality cars from Europe, but were expected to trade in those expensive cars for a shiny new Porsche or Mercedes or Audi or Ferrari (or Rolls).

OP is not wealthy, and depending on where they live, may be just getting by.

And they might have another child.

They are a typical family, and have serious trade-offs to consider.

Pay cash for a used car, relatively safe, and newer than the current car seems to be the answer.

Spend too much for the SUV, and within a couple of months the luster will have worn off but the cost will linger.