You need to retake 8th grade math. I will pay $7k for 3 years to drive a brand new $28k car. Buying the car over 3 years would cost $800 per month. Add in a lifetime of tires and oil changes and batteries and brakes and belts and shocks and tuneups. Estimates are that average maintenance is $100 per month for the first 25k miles and $140 per month after that.
gregmacd wrote:
I've had a 1999 Lexus RX300 for the last 18 years, and love it. Maybe just agree to get something like this in the $5k - $10k range?
https://www.thetruthaboutcars.com/2013/03/1999-2003-lexus-rx300-the-perfect-first-car/
How well does a 6'5 string bean fit in one of these cars? Leaning towards a decade old Subaru Outback for my kid's first car, but wouldn't mind buying a lowish mileage one of these for the sake of spending less.
Worth considering 20+ years of improved crash safety before getting a car from the late 90s for your kid.
My wife and I were also going to buy a car, but we wanted to travel by it, as we love outdoor activities, and in general, we thought that the vehicle was something necessary, but as it turned out, no. I noticed that in the first place, people in the U.S. and Western Europe doubt the need for a car; in China and India, for example, the situation is precisely the opposite. In these countries, the economy is increasing, people start earning more money than they used to imagine, and the car becomes a status symbol as usual. Following economic changes and the advent of the Internet, smartphones, and applications, people's attitude to material things is changing: modern people value new experiences more than things. So it is better to watch the Automotive industry and then draw conclusions.
Unsure frugal gal wrote:
We have an old sedan that we bought cash 6 years ago and now my husband wants to get a SUV.
I think that's foolish to spend money on a car while we could invest instead. Our car works fine. It has cosmetic issues and it's a tad small now that we have a kid, but we don't really need. We only use it on the weekend and on vacation.
Our finances: no credit card, no car loan, but 1 school loan remaining (around 10K left). We are renters. Combined, we make around 150K a year. We have a 401K, an IRA, a 3-month emergency fund, and around 50K in stocks.
I told my husband that it's a bad idea to get a brand new car since it depreciates instantly. He reluctantly agreed and he's now looking at pre-owned SUVs for around 20-25K, which I find super expensive. He's also interested in leasing. Again, I think that's a bad idea financially.
What do you think? Would you buy a new car? And if yes, how much would you spend on it?
Get a newer used car. I think to call your husband's idea foolish, reflects poorly on you. An older car has numerous limitations.
Do you always act as if your judgement is superior to your husband's? There is a way to disagree without demeaning your spouse.
Wow is this what the middle class has come to?
Debt is how the rich get richer. Cash and 401ks just power the economic engine. Sure they'll throw you 10% a year for being a good boy, but many boomers who took the bait worked a literal lifetime and died before they can live out their dreams.
Scarcity mentality drives the 401k racket when in reality money is constantly being printed at will, devaluing even your stocks (as profits lag behind returns).
Take back your money, and spend it on yourself, and realize there is shartloads to be made and you'll be happier and richer for it.