@Flying_Spaghetti_Monster wrote:I've been browsing the forums for a while, and I have seen a disturbing-yet-common trend: people seem to be buying way too much car than they can comfortably afford. Why on earth would one want to put themselves $19K in debt for a new car if they make $2200 a month? A car payment on that would be $600 a month or so at 8%, no? I realize that most people need a car, but why try to max out your outlay every month?
I would hope you have, at the minimum, $5k for emergencies saved (cash), and you are putting 15% towards some sort of retirement fund. Please take my advice that a new car is not worth sacrificing your financial stability. I see so many of my friends doing the same thing, and it's a 50/50 crapshoot as to when they will miss a payment due to the inevitable "life happening" occurrence.
That being said, I also believe new cars are a huge waste of money, and have never purchased one in my 24 years of owning cars.
Am I crazy?
I think that every person is different. An 18k Hyndai Elantra is not what I would consider a "high end" car. The price of cars has gone up, and folks need a reliable car to get back and forth to work and make money.
The availability of nice used cars at a reasonable price has gone down. I never bought a new car until this year... because the car I was looking at would cost almost as much used as it would new, and would not have the features that I wanted.
Also, people have different values. I grew up in a lot of different places, but the one thing that was the same was the car. Therefore, I have learned through my experiences to become very attached to the family car. I literally cried when the car we replaced was totalled by the insurance company 
To an extent, cars are a necessity, not a luxury. For young people starting out, it is easy to get over your head by getting too much car, but the OP in this thread is not considering a luxury brand, nor is the OP considering a high end sedan.
FICO 9: 
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!
@webhopper wrote:
@Flying_Spaghetti_Monster wrote:I've been browsing the forums for a while, and I have seen a disturbing-yet-common trend: people seem to be buying way too much car than they can comfortably afford. Why on earth would one want to put themselves $19K in debt for a new car if they make $2200 a month? A car payment on that would be $600 a month or so at 8%, no? I realize that most people need a car, but why try to max out your outlay every month?
I would hope you have, at the minimum, $5k for emergencies saved (cash), and you are putting 15% towards some sort of retirement fund. Please take my advice that a new car is not worth sacrificing your financial stability. I see so many of my friends doing the same thing, and it's a 50/50 crapshoot as to when they will miss a payment due to the inevitable "life happening" occurrence.
That being said, I also believe new cars are a huge waste of money, and have never purchased one in my 24 years of owning cars.
Am I crazy?
I think that every person is different. An 18k Hyndai Elantra is not what I would consider a "high end" car. The price of cars has gone up, and folks need a reliable car to get back and forth to work and make money.
The availability of nice used cars at a reasonable price has gone down. I never bought a new car until this year... because the car I was looking at would cost almost as much used as it would new, and would not have the features that I wanted.
Also, people have different values. I grew up in a lot of different places, but the one thing that was the same was the car. Therefore, I have learned through my experiences to become very attached to the family car. I literally cried when the car we replaced was totalled by the insurance company
To an extent, cars are a necessity, not a luxury. For young people starting out, it is easy to get over your head by getting too much car, but the OP in this thread is not considering a luxury brand, nor is the OP considering a high end sedan.
+1
I didnt know you could even buy a car under $20k these days.
*8/10/13
+1000 "You typically buy things that appreciate in value"...exactly. My 2004 Dodge Stratus isn't even worth $2000 now when I bought it new at $23K MSRP and outrageous interest due to bad credit back then. Worst investment I ever made! LOL!
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! 
Last App: 4/5/13 Gardening until July 2014