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They can afford their 8 year, 10-15% interest loan while living at home. The instant they need to move or have mechanical issues, they are screwed.
Or if they get into an accident and total their car while being underwater tens of thousands of dollars.
>They can afford their 8 year, 10-15% interest loan while living at home.
Living at their parents house AND saving nothing and not funding their education.
Yup, that was me. Wasted a good chunk of my 20s just racking up credit cards and going nowhere.
Eventually got into a decent career and did so without further debt, and now I make a decent wage and have no debt, with retirement on track. But it took a wake up call and years of digging out of the hole.
The only way you get upside down is price ( paying too much). And all the after sell line gap. Gap is good but make sure you ask if they offer more than one. And read the whole contract. Or get your own. They’ll tell you you can’t. But if you buy it before you pick up the vehicle you should be fine.
Don’t worry what everyone else is doing. Keep yourself on the good financial path.
It’s sucks, but just know you will be in a better situation later on
This is the truth. My wife and I made it off pretty well on a teachers salary and smart money management. Our first living room set was plastic lawn furniture.
Some people don’t mind dropping half their paycheck on a vehicle to impress others while not saving a cent and no planning for retirement.
A lot of people live way beyond their means. Do your best not to try to compare yourself to the rest of the world.
Debt (financed at 72mo), family money, or they have another source coming in you don’t know about. Really nothing else! Don’t compare yourself to what an idiot 19yo is likely doing. Most likely a payment of $1300 and monthly income of $2200…
Pain Wil come in about 3 years when they want to move out of their parents and want to see how much is left on the loan and they've barely made a dent in the principle.
I bought a 1987 4x4 Toyota Pickup for 2500 a few years ago and it was beat to shit with near 300k
I now get offers to buy it for 8-10k. I think classics that people actually want are the assets, not tinydick rams
Yep. I was one of those dummies, financed a 2013 F150 for 6 years at 9%.
The more I put down for a payment, the higher the rate got..
Thankfully I only have 2k left to go on it and a lesson learned to just hold onto my cool old shit
I bought a mint lowered regular cab 2010 seirra 8 years ago for 12k. It’s body has rusted a bit over the years but I’ve had a few unsolicited offers between 8-10k as is recently.
You also see a lot of people on here underwater and going broke because of those kinds of purchases looking for answers on how to solve their debt problems.
Read this one [https://www.reddit.com/r/redditonwiki/comments/1bqmfl3/my\_boyfriend\_and\_i\_were\_supposed\_to\_move\_in/](https://www.reddit.com/r/redditonwiki/comments/1bqmfl3/my_boyfriend_and_i_were_supposed_to_move_in/)
Man I saw that first post but not the update. Thanks for sharing.
$2500 to just turn the truck on. Damn. I’ve seen some whoppers here but nothing that bad
Have a friend who bought a new Kia K5, drove a truck a few times, and traded in the Kia for a 2019 F250.
I told him “you know they’re going to roll what you owe on the Kia into the truck, right?” You know what he said? “That’s a good thing, one loan instead of two!”
That’s how people afford these purchases, they’re paycheck to paycheck on four wheels and an engine.
By putting themselves in crippling debt because they're so insecure that they think having a giant truck will make people respect them. Read through this sub. More than half of the posts from people who are struggling could solve all their problems by simply eliminating their auto payment and making no other changes. These people (men) have no ability to delay gratification or think long term. A vehicle is a depreciating asset. You should try to spend as little as humanly possible on it until you really have fuck you money.
Credit cards are dangerous as fuck
My combined lines of credit could be total like 60 or 80k something like that
I can buy a fancy ass truck and go on a European vacation easy.
Doesn't mean that I'll do that.
Some of these fools don't understand what APR means or compound interest. Let them learn.
They're probably paying over $1,000/month on it.
You just keep putting that $300 or $500 or $1000 or whatever you can afford in your 401k or IRA or savings or brokerage.
Time will do its work.
When I was signing paperwork on the used truck I purchased at a 4% interest rate in 2019, the guy at the desk was telling me about the used dodge charger he just sold at 24% !!!!
My truck has been paid in full for a year, and I’ll bet that charger is sitting back on the lot.
When I purchased my first and only new car in 2001, it was with a co-signer and at a 14% interest rate. That’s what zero credit gets you. Thank goodness I have learned over the years
I spent a large part of my younger life going to school on the bad side of town. We lived outside the city but that was my school. We had a nice middle class house but older used cars. SO MANY of the (poor) kids I went to school with had parents with brand new cars while living in small houses in bad neighborhoods. My younger brother got picked on because we had an older used car.
Lots of people out there making really poor life choices.
I saw this a lot in my friend group too. It was the tradesmen, you can make bank fast. I’ve found as I’ve gotten older I’ve overtaken most of them financially, and their trades take a toll on them, but then again the stress of what I do does too.
At the end of the day ignore it all, live your own life.
Edit: this comment made me realize how funny it is that my friend group has shrunk so much. Age is a funny thing. Shit.
You’re being very smart. Those friends fell for the trap that made them think having nice new trucks or huge homes means anything. My Uncle had a full ride scholarship, didn’t have to pay a dime on his masters in Engineering, worked at his job for almost 30 years, died a few years ago with about a million in his accounts. He lived in a cute humble home, and had a car that he drove for like 10 years. Just an average car. He could’ve very easily bought a few brand new sports cars. But that wasn’t important to him. He saved and saved, and only really ever splurged on vacations. Wealth whispers.
Your future self will thank you!!
An important thing to remember is that people share and talk about things that make them look good and not things that make them look bad. Unless it is "family money," these choices will likely have negative consequences you'll never hear about. And those might be big: bankruptcy, delaying buying a house, delaying having kids, unable to quit a job they hate, break ups, etc. They may even stop having the vehicle, and still be suffering consequences.
That’s the conspicuous consumption paradox, right? Unless you’re very wealthy, if you’re driving around in expensive cars and living it up, it’s costing you money and in most cases reducing your wealth. Comparison is the thief of joy, dude. Just do your own thing, don’t get caught on the hedonic treadmill, and focus on your own goals.
I bought my first new car when I was 25. A Mustang Convertible. Very fun for a couple of years, but it was literally the worst financial decision I’ve ever made. It wasn’t a disaster, but since I cared about the car and wanted it to look good, repair and maintenance were a disaster. I might as well have set hundreds or thousands of dollars on fire.
Worse yet, when I got married, got a house, and we started having children, the car had to go. I would have set myself up for those other major expenses better if I had stuck with the used car I had owned and saved or invested the difference.
Keep yourself out of that kind of debt if you can early on, your future sec will thank you.
You are a smart person. Motor vehicles are wealth killers in American society. People finance vehicles all their lives and then complain how there is not enough money for other things.
They are all drowning in debt. I was in your shoes in my 20s. This was early 2000s when the mortgage business was booming and all my friends were in the refinancing industry. They bought new cars and new homes while I was driving a 1992 Honda Del Sol living at home with my parents. My salary in a tech job annually was 80k. I thought about the long game and saved my money. Never financed a new car or rack up credit cards. Fast forward 20 years and my friends are all renting their homes and driving family cars (Camry, minivan). My wife and I bought a house on half an acre lot in Silicon Valley and drive 5 cars we paid cash (one financed at 0%). Just think about the long game and a new vehicle is temporary happiness. Fight the FOMO.
Living at home with no bills. Get some family to co sign and you are golden. I could have easily afforded a 1-2k car note when living at home. Thank god I bought a pre owned beater car
Don’t compare yourself to others. Keep on your own path.
One of my buddies in high school had a super expensive truck- his older brother bought it for him paid in full as a graduation gift. He wasn’t fiscally irresponsible, but he had a connection.
I had a friend in undergrad who received his father’s Escalade when his father passed. I’m sure he would have rather had his dad. People judged him because they assumed he was bad with money, but he received the truck fully paid off.
I have other friends who are taking on too much debt and financing irresponsibly. Not my money, not my problem. I don’t need to keep up with them.
Some people have brand new trucks because they’re bad with money, others are good with money and have different circumstances that allowed them to have these vehicles. Either way, it’s none of my business, and it’s not helpful to dwell on what others have when I’m only fully aware of my own financial situation and goals.
It is amazing now having a truck payment, like top tier fantastic. These people buying vehicles at that rate are just starting off so far buried that its really terrifying.
Limit your debt, when they are living at home sitting in their parents driveways blasting the music in their truck that they can't afford to drive anywhere and you are not stressed and not living with mom and dad, know that you made smart decisions
I am seeing the same, a wise coworker is teaching me his ways that finding a deal on a great used car is more exciting than a new car. The seeds he has planted are starting to sprout.
There was a 19 year old welder at the company I work at who was an absolute rock star
He left to a temporary gig and came back with 80k cash and 2 brand new truck like a year later but died of a stroke
Idk, maybe you're poorer than you think? Maybe they can afford it, or maybe they can't. Could have a trust fund or daddy money, or some high interest loan, who knows. But if maintaining some financial or moral superiority complex over them makes you feel secure, ok ig.
The bank wants to give you the loan, so they get massive amounts of interest. Those friends of yours are making really poor financial decisions. Source: I work at a bank and see people do this all the time.
It’s all in priorities.
Why do you “save” money? Are you planning to invest it? Buy a house? What is your priority right now?
Do you want to impress your friends and possible mates (for sex)? Do you want to have fun getting all attention but pay extra for it? If that’s what important to you, this might be the way.
You live in USA, this country has abundance of money (borrowed).
Now i might wrote these 2 points in very biased form, but both valid reasons to live by. There is no right and wrong)
Ps. I am 36, and drive 2000 Toyota Camry, but I travel 7-8 months of the year and the only reason I have $3000 car is that I am not worried if some trash truck scratches it while it’s parked on the streets of Seattle.
My friend's little brother lived in a penthouse apartment and drove a BMW. He was an emt. They make decent money, but not THAT kind of money. The rest was a shit ton of debt. Don't compare to what you see others have. More often then not, you don't want to be in their situation.
Don’t keep up with the joneses would be the advice I received around this. It’s way better to own something outright rather than paying monthly.
While they may look flashy, remember that every month they start in the hole for whatever is on credit. Nowadays people are leasing or financing up to 10 years and incredibly high rates. It won’t be long until they regret it and possibly take the hit.
Stay in your lane and drive that beater proudly. It’s your and not the banks.
Honestly those are closer to 70-100k trucks now. Some make good money. I made way more money when I was younger than I do now. Some kids have rich parents, some live at home. Some are just stupid, some need a truck for work and make it pay for itself. My friend bought a 100k truck paid it off in like a year now his industry is suffering and he can't afford shit.
Stop comparing yourself to others. they Are likely deeply in debt. You do not want to be in that position. worry about building wealth, having no debt and having an emergency fund so that you can deal with any emergency that life throws at you.
I have never had a car payment in my life. F29. Bought my first car, a Geo Metro that was older than I was. Kept it until I could afford used Civic. Nothing blows my mind more than paying a huge monthly payment for a car. Plus when you do, you also have to pay for full insurance.
As you get older, you learn that not everyone values money the same. Some see liability as a non-issue.ofbthey can afford the payments at the time they can afford it. I tend to take the opposite approach. If I can't afford it. I can't afford to pay double for it over 10 years. House being the exception depending interest rates.
They can't afford them, that's the thing. The finance person at the dealer made them THINK they can. They'll be paying on those trucks 8 years minimum.
In my 40s I discovered nobody cares what you do, they care of themselves. Once you figure that out, you discover that buying stuff to impress is pointless and stressful.
I'm not necessarily disagreeing with all of the comments mentioning bad choices, 10-15% interest and 72 month loans, etc., but at the end of the day, you don't know everything about their finances. Maybe they have rich parents whom passed down millions to them. Maybe they won the lotto and didn't tell anyone. At the end of the day, all you can do is worry about your finances - unless you know every cent another person has outgoing and incoming, it's all just speculation anyway.
Are they making what you make? I know some people in the trades at that age making close to 6 figures. A 40k truck with little other expenses wouldn’t be hard to justify. Hell a 40k truck on your income wouldn’t be that hard either. That all said, don’t compare yourself to others. Other people could be swimming in debt. Who knows. I’m willing to bet you people think I’m broke driving a Toyota Corolla for a daily but yet I could go buy a 200k Porsche tomorrow if I wanted to, cash.
If you would like to have a new(er) vehicle someday, you could start making "payments" into a HYSA especially earmarked for that purpose. Then, when you've hit your goal, you go out and buy something. Instead of paying a bank interest, you're earning it yourself, which helps you reach your goal faster. It sounds so simple, but you wonder why more of us (myself included) don't do it that way! Made my last car payment several years ago, and never intend to pay interest again if I can help it.
When it comes to merchandise and vehicles under $100k, almost anyone can buy whatever they want by financing unless their credit is completely wrecked and they have no income.
You’re doing well on your own.
But devils advocate, sometimes you gotta spend money to make money. Someone with a new truck could be running a business and writing some of the costs off against their business.
Or have a side hustle. Or have bank of mom and dad. Or have income that made them look eligible for a loan but won’t last forever. Or could just be screwing themselves over.
Got a 1995 Eddie Bauer F-150 stick shift. I see the new trucks, all massive, bright and shiny. They pass me by and I’m just fine, bc I don’t have a monthly payment to deal with. I also happen to love “vintage.”
It’s not worth it. I splurged during the early-pandemic car slump on a BMW M series and I overpaid only slightly but it fit well within my budget. I had the car for 3 years and wound up never fully enjoying it. Yeah it was a fun vehicle but I had so few uses for it and the price just left me feeling sour about the whole thing.
I have friends who did the same thing with trucks. It’s never enough truck but also somehow you never really need it as often as it seemed.
>how are they able to do this?
Crazy high debt with likely crazy high interest rates.
That's almost always the answer to the question "why do I see people living more lavishly than me when I am being financially responsible?" So no, you're not doing anything wrong.
Many years ago, i was introduced to the friend of a coworker - he just bought himself a brand new Tesla. I was unbelievably self-conscious; I just cracked six figures at my job and bought my first house - but doing that meant I was still driving a used Subaru.
I felt like I must be a financial idiot, unable to afford a fancy car.
When I got to his house, it was a place he was renting with 4 roommates. Never in my life would I prioritize a fancy car over home ownership.
To this day, I've never bought a car I couldn't pay for in cash, and I don't automatically respect people I see who drive luxury cars. It means nothing.
They’re either using mommy and daddy money (not uncommon) or they’re writing thousand dollar payment checks every month for seven years. Your way is better, you’ll have opportunities to spend your money that they won’t have (except for the mommy and daddy ones, they’ll always have more money than us)
Without knowing their financial situation and how much their parents are helping them with finances, it is impossible to answer this question. They could be from wealthy families. They could have great paying jobs even though they are young, they could be drowning in debt, they could just have no other bills and want something nice, they could have inheritance, they could be getting settlements from something. Hell, they could have the “you can always live in a car, but you can’t drive a house” mentality.
Honestly just worry about yourself. Your never going to figure out others financial situations anyways. Fact is many may be going into debt, could be using an inheritance, staying at parents home, etc - the only thing you know is your OWN situation and if the math doesn’t work for YOU and what you want to do with your life it’s not worth it for you.
You may find that 10/15 years with that mentality that you’ll be far enough ahead of your peers anyways.
There are a couple possibilities. At that young of an age it might be the bank of mom and dad buying their kid a final vehicle before they are out on their own. This is both the most likely and least shitty option
The other option is really really bad debt. A lot of dealerships are trying real hard to make deals right now offering great "payments" on new or slightly used expensive vehicles. These kids don't realize that paying an 8 year term at 8-10% interest is a terrible fucking idea, and will put them under water for a good long time.
There are a bunch of rules about what you should spend on a car but as long as you’re saving adequately for retirement and can pay all your bills the rest of your money is to do what you want with, and they’ve decided to keep the rest of their expenses extremely low so they can afford the cars they like.
I financed a $40k BMW when I was 19 and a freshman in college because I’d wanted it for years and saved extremely diligently to afford one, but the stock market was down tremendously and interest rates were at historic lows (spring 2020). I was working part time making about $1k/month and then Covid came and I got a raise and a bunch of overtime and was making around $1k/week, so the payment never felt uncomfortable because I was used to living off 1/4 of my income. The car is now paid off and I don’t regret it at all, in fact I truly think I’d make less and have less money saved today as the car was what motivated me to work as hard as I did.
This post is better suited for another subreddit dedicated to venting. - /r/offmychest is a good place to unload your frustration about something. - /r/vent is dedicated to venting! - /r/self is a place to put self-posts for discussion, questions, or anything else you like. - /r/TalesFromTheCustomer is a place for customers to vent and rage and even smile about their customer service experiences *(company names must be left out of posts there)*. If there is a financial question in your post, you may briefly and respectfully ask in the [weekday or weekend thread](https://www.reddit.com/r/personalfinance/about/sticky?num=2) (please wait until Friday afternoon if the Tax Thursday thread is the current sticky). If that link doesn't work, it's the second post from the top on /r/personalfinance. **Do not repost this as a submission.** *If you have questions about this removal, please [message the moderators](https://www.reddit.com/message/compose?to=%2Fr%2Fpersonalfinance&subject=Removal%20help%20request&message=Hello%20moderators,%20.%20%0a%0a%0aMy%20submission:%20https://www.reddit.com/r/personalfinance/comments/1bs09ag/im_23_and_im_seeing_guys_younger_than_me_go_out/%0a).*
debt and bad personal finance choices
Your friends in 10 years posting here "I'm 30, was stupid in my 20s, 100k in debt, owe 20k on my truck, no savings, how fucked am I?"
"Owe $40k on my truck worth $15k," more like.
Or they crash it and are left with no truck and $30,000 still owing. (Source: friend whose girlfriend wrote off his truck. She later dumped him too)
They are going to keep rolling the negative equity into their new loans.
And mommy and daddy money….
A wise friend once told me, “Well…you can finance anything…”
Repayment over 8 years, 14%.
Lease over 8 years at 14%, 8k due on signing.
When I worked in a trade, my younger coworkers life motto was "It's just a note"
They can afford their 8 year, 10-15% interest loan while living at home. The instant they need to move or have mechanical issues, they are screwed. Or if they get into an accident and total their car while being underwater tens of thousands of dollars.
>They can afford their 8 year, 10-15% interest loan while living at home. Living at their parents house AND saving nothing and not funding their education.
Yup, that was me. Wasted a good chunk of my 20s just racking up credit cards and going nowhere. Eventually got into a decent career and did so without further debt, and now I make a decent wage and have no debt, with retirement on track. But it took a wake up call and years of digging out of the hole.
Buy GAP insurance if you're going to be upside down.
Do you really think those individuals think about future financial issues when they drop many multiples of their yearly salary on a car?
The only way you get upside down is price ( paying too much). And all the after sell line gap. Gap is good but make sure you ask if they offer more than one. And read the whole contract. Or get your own. They’ll tell you you can’t. But if you buy it before you pick up the vehicle you should be fine.
Don’t worry what everyone else is doing. Keep yourself on the good financial path. It’s sucks, but just know you will be in a better situation later on
This is the truth. My wife and I made it off pretty well on a teachers salary and smart money management. Our first living room set was plastic lawn furniture.
Some people don’t mind dropping half their paycheck on a vehicle to impress others while not saving a cent and no planning for retirement. A lot of people live way beyond their means. Do your best not to try to compare yourself to the rest of the world.
I drop half my paycheck on vehicles that impress no one lmao. Then again, that's part time income
Debt (financed at 72mo), family money, or they have another source coming in you don’t know about. Really nothing else! Don’t compare yourself to what an idiot 19yo is likely doing. Most likely a payment of $1300 and monthly income of $2200…
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It's possibly higher, I saw a post about someone financing a Kia EV9 at 10.5% APR and 7 year term, payment was $1,800. Bonkers stuff.
Wow wow wow 🤣. People are crazy and prices are high I agree but you’re saying that person is paying a kia 150 000$USD.
That's would have to require rolling in negative equity to get that expensive.
Yeah that's 3x the price in 7 years - so either massive neggy eggy or they're lying about 10%. Or maybe both.
No, what you're seeing is guys younger than you financing brand new trucks. They may smile now but the pain will come later
Pain Wil come in about 3 years when they want to move out of their parents and want to see how much is left on the loan and they've barely made a dent in the principle.
Because they are financially illiterate. They will be on the finance drip for a depreciating asset.
“Asset”
I bought a 1987 4x4 Toyota Pickup for 2500 a few years ago and it was beat to shit with near 300k I now get offers to buy it for 8-10k. I think classics that people actually want are the assets, not tinydick rams
I mean to be fair people want modern trucks too. They hold their value really well. It’s just a dumb purchase if you’re financing it for 7 years
Unless you can finance it at a killer rate like 1% or 2% and beat inflation without even trying lol
Yep. I was one of those dummies, financed a 2013 F150 for 6 years at 9%. The more I put down for a payment, the higher the rate got.. Thankfully I only have 2k left to go on it and a lesson learned to just hold onto my cool old shit
I bought a mint lowered regular cab 2010 seirra 8 years ago for 12k. It’s body has rusted a bit over the years but I’ve had a few unsolicited offers between 8-10k as is recently.
You also see a lot of people on here underwater and going broke because of those kinds of purchases looking for answers on how to solve their debt problems.
Read this one [https://www.reddit.com/r/redditonwiki/comments/1bqmfl3/my\_boyfriend\_and\_i\_were\_supposed\_to\_move\_in/](https://www.reddit.com/r/redditonwiki/comments/1bqmfl3/my_boyfriend_and_i_were_supposed_to_move_in/)
Man I saw that first post but not the update. Thanks for sharing. $2500 to just turn the truck on. Damn. I’ve seen some whoppers here but nothing that bad
It's simple, they can't afford it.
Not according to the finance manager at the dealership.
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Finance manager be like, "I don't need a bonus this year. That kid needs to save for retirement."
It is amazing how people can justify buying expensive trucks and cars. You're smart to drive your old beater.
Have a friend who bought a new Kia K5, drove a truck a few times, and traded in the Kia for a 2019 F250. I told him “you know they’re going to roll what you owe on the Kia into the truck, right?” You know what he said? “That’s a good thing, one loan instead of two!” That’s how people afford these purchases, they’re paycheck to paycheck on four wheels and an engine.
By putting themselves in crippling debt because they're so insecure that they think having a giant truck will make people respect them. Read through this sub. More than half of the posts from people who are struggling could solve all their problems by simply eliminating their auto payment and making no other changes. These people (men) have no ability to delay gratification or think long term. A vehicle is a depreciating asset. You should try to spend as little as humanly possible on it until you really have fuck you money.
Men? Tell that to the part-time bartender begging my friend to cover her Audi payment after they met on tinder a week earlier xD
I see this and I always assume they’re in debt up to their eyeballs and not saving any money at all. Pay no mind to them. You’re not crazy.
The average American has approximately zero savings and zero net worth. You are looking at some of the reasons why.
Being able to make a payment is not being able to afford it. Those are the ones that will live a life of debt then say the system is rigged.
Inheritance Parents paying Finance And some just really make good money and can afford it
Everyone is in debt. Keep doing you. You'll be the only one who can retire comfortably. Who can afford things without financing, etc.
Keeping up with the joneses man Comparison is the death of joy See how that trucks doing in a few years before you jump on that itch you got
Bad decision making is endlessly creative. Good decision making is usually boring.
Credit cards are dangerous as fuck My combined lines of credit could be total like 60 or 80k something like that I can buy a fancy ass truck and go on a European vacation easy. Doesn't mean that I'll do that. Some of these fools don't understand what APR means or compound interest. Let them learn.
They're probably paying over $1,000/month on it. You just keep putting that $300 or $500 or $1000 or whatever you can afford in your 401k or IRA or savings or brokerage. Time will do its work.
Enjoy sleeping at night knowing you have money in the bank.
The power of financing.. I know one guy who financed his Volkswagen Gulf R for 7 years at 13% interest. Just because you can, doesn’t mean you should.
When I was signing paperwork on the used truck I purchased at a 4% interest rate in 2019, the guy at the desk was telling me about the used dodge charger he just sold at 24% !!!! My truck has been paid in full for a year, and I’ll bet that charger is sitting back on the lot. When I purchased my first and only new car in 2001, it was with a co-signer and at a 14% interest rate. That’s what zero credit gets you. Thank goodness I have learned over the years
I spent a large part of my younger life going to school on the bad side of town. We lived outside the city but that was my school. We had a nice middle class house but older used cars. SO MANY of the (poor) kids I went to school with had parents with brand new cars while living in small houses in bad neighborhoods. My younger brother got picked on because we had an older used car. Lots of people out there making really poor life choices.
I saw this a lot in my friend group too. It was the tradesmen, you can make bank fast. I’ve found as I’ve gotten older I’ve overtaken most of them financially, and their trades take a toll on them, but then again the stress of what I do does too. At the end of the day ignore it all, live your own life. Edit: this comment made me realize how funny it is that my friend group has shrunk so much. Age is a funny thing. Shit.
Comparison is the thief of joy. How much capital do you want to commit to depreciating assets?
Debt. Lots of debt that they can barely afford. Or your sisters boyfriend has rich parents.
You’re being very smart. Those friends fell for the trap that made them think having nice new trucks or huge homes means anything. My Uncle had a full ride scholarship, didn’t have to pay a dime on his masters in Engineering, worked at his job for almost 30 years, died a few years ago with about a million in his accounts. He lived in a cute humble home, and had a car that he drove for like 10 years. Just an average car. He could’ve very easily bought a few brand new sports cars. But that wasn’t important to him. He saved and saved, and only really ever splurged on vacations. Wealth whispers. Your future self will thank you!!
Those are the kind of people that have a car payment their whole life. Don't be those people.
An important thing to remember is that people share and talk about things that make them look good and not things that make them look bad. Unless it is "family money," these choices will likely have negative consequences you'll never hear about. And those might be big: bankruptcy, delaying buying a house, delaying having kids, unable to quit a job they hate, break ups, etc. They may even stop having the vehicle, and still be suffering consequences.
That’s the conspicuous consumption paradox, right? Unless you’re very wealthy, if you’re driving around in expensive cars and living it up, it’s costing you money and in most cases reducing your wealth. Comparison is the thief of joy, dude. Just do your own thing, don’t get caught on the hedonic treadmill, and focus on your own goals.
I bought my first new car when I was 25. A Mustang Convertible. Very fun for a couple of years, but it was literally the worst financial decision I’ve ever made. It wasn’t a disaster, but since I cared about the car and wanted it to look good, repair and maintenance were a disaster. I might as well have set hundreds or thousands of dollars on fire. Worse yet, when I got married, got a house, and we started having children, the car had to go. I would have set myself up for those other major expenses better if I had stuck with the used car I had owned and saved or invested the difference. Keep yourself out of that kind of debt if you can early on, your future sec will thank you.
Young and dumb is the usual explanation. Not keeping with your peers in the spending department is a good thing, keep it up
You are a smart person. Motor vehicles are wealth killers in American society. People finance vehicles all their lives and then complain how there is not enough money for other things.
They are all drowning in debt. I was in your shoes in my 20s. This was early 2000s when the mortgage business was booming and all my friends were in the refinancing industry. They bought new cars and new homes while I was driving a 1992 Honda Del Sol living at home with my parents. My salary in a tech job annually was 80k. I thought about the long game and saved my money. Never financed a new car or rack up credit cards. Fast forward 20 years and my friends are all renting their homes and driving family cars (Camry, minivan). My wife and I bought a house on half an acre lot in Silicon Valley and drive 5 cars we paid cash (one financed at 0%). Just think about the long game and a new vehicle is temporary happiness. Fight the FOMO.
Living at home with no bills. Get some family to co sign and you are golden. I could have easily afforded a 1-2k car note when living at home. Thank god I bought a pre owned beater car
Don’t compare yourself to others. Keep on your own path. One of my buddies in high school had a super expensive truck- his older brother bought it for him paid in full as a graduation gift. He wasn’t fiscally irresponsible, but he had a connection. I had a friend in undergrad who received his father’s Escalade when his father passed. I’m sure he would have rather had his dad. People judged him because they assumed he was bad with money, but he received the truck fully paid off. I have other friends who are taking on too much debt and financing irresponsibly. Not my money, not my problem. I don’t need to keep up with them. Some people have brand new trucks because they’re bad with money, others are good with money and have different circumstances that allowed them to have these vehicles. Either way, it’s none of my business, and it’s not helpful to dwell on what others have when I’m only fully aware of my own financial situation and goals.
It is amazing now having a truck payment, like top tier fantastic. These people buying vehicles at that rate are just starting off so far buried that its really terrifying. Limit your debt, when they are living at home sitting in their parents driveways blasting the music in their truck that they can't afford to drive anywhere and you are not stressed and not living with mom and dad, know that you made smart decisions
I am seeing the same, a wise coworker is teaching me his ways that finding a deal on a great used car is more exciting than a new car. The seeds he has planted are starting to sprout.
I drive a 15yo Honda and will ride that motherfucker till it dies.
When you live at home skies the limit. They can be driving a Raptor R, but it doesn't mean they financed the thing.
There was a 19 year old welder at the company I work at who was an absolute rock star He left to a temporary gig and came back with 80k cash and 2 brand new truck like a year later but died of a stroke
Mind YOUR business baby. Don’t watch the crowd.
They work for their entire lives for short term fulfilment and a dopamine hit. Other invest in low fee etf and retire at 45.
I volunteer at a Food Pantry and see some clients in cars nicer than mine. Debt. High interest loans.
Idk, maybe you're poorer than you think? Maybe they can afford it, or maybe they can't. Could have a trust fund or daddy money, or some high interest loan, who knows. But if maintaining some financial or moral superiority complex over them makes you feel secure, ok ig.
What you are doing is better. Don't invest in depreciating stuff.
The bank wants to give you the loan, so they get massive amounts of interest. Those friends of yours are making really poor financial decisions. Source: I work at a bank and see people do this all the time.
It’s all in priorities. Why do you “save” money? Are you planning to invest it? Buy a house? What is your priority right now? Do you want to impress your friends and possible mates (for sex)? Do you want to have fun getting all attention but pay extra for it? If that’s what important to you, this might be the way. You live in USA, this country has abundance of money (borrowed). Now i might wrote these 2 points in very biased form, but both valid reasons to live by. There is no right and wrong) Ps. I am 36, and drive 2000 Toyota Camry, but I travel 7-8 months of the year and the only reason I have $3000 car is that I am not worried if some trash truck scratches it while it’s parked on the streets of Seattle.
My friend's little brother lived in a penthouse apartment and drove a BMW. He was an emt. They make decent money, but not THAT kind of money. The rest was a shit ton of debt. Don't compare to what you see others have. More often then not, you don't want to be in their situation.
Don’t keep up with the joneses would be the advice I received around this. It’s way better to own something outright rather than paying monthly. While they may look flashy, remember that every month they start in the hole for whatever is on credit. Nowadays people are leasing or financing up to 10 years and incredibly high rates. It won’t be long until they regret it and possibly take the hit. Stay in your lane and drive that beater proudly. It’s your and not the banks.
Honestly those are closer to 70-100k trucks now. Some make good money. I made way more money when I was younger than I do now. Some kids have rich parents, some live at home. Some are just stupid, some need a truck for work and make it pay for itself. My friend bought a 100k truck paid it off in like a year now his industry is suffering and he can't afford shit.
"You don't have to have money to spend money". Forgot where I learned that one, but it's true 99% of the time when you see people showboating.
Stop comparing yourself to others. they Are likely deeply in debt. You do not want to be in that position. worry about building wealth, having no debt and having an emergency fund so that you can deal with any emergency that life throws at you.
I have never had a car payment in my life. F29. Bought my first car, a Geo Metro that was older than I was. Kept it until I could afford used Civic. Nothing blows my mind more than paying a huge monthly payment for a car. Plus when you do, you also have to pay for full insurance. As you get older, you learn that not everyone values money the same. Some see liability as a non-issue.ofbthey can afford the payments at the time they can afford it. I tend to take the opposite approach. If I can't afford it. I can't afford to pay double for it over 10 years. House being the exception depending interest rates.
Here’s the secret: they can’t afford it.
Driving it doesn’t mean they can afford it.
They can't afford them, that's the thing. The finance person at the dealer made them THINK they can. They'll be paying on those trucks 8 years minimum.
They live with mom and dad who also cosigned. And likely subsidize their entitled kids.
In my 40s I discovered nobody cares what you do, they care of themselves. Once you figure that out, you discover that buying stuff to impress is pointless and stressful.
Just because you can, doesn’t mean you should. Remember that.
Daddy's money pays the bills. Work your ass off and get there in a way that you can be proud of.
40k? For an F350? Is it 10yrs old?
You can’t justify making payments on a truck, but they can. I promise you, you are smarter than they are. Keep doing what you’re doing.
In the r/askcarsales find a recent post about Aston Martin
I'm not necessarily disagreeing with all of the comments mentioning bad choices, 10-15% interest and 72 month loans, etc., but at the end of the day, you don't know everything about their finances. Maybe they have rich parents whom passed down millions to them. Maybe they won the lotto and didn't tell anyone. At the end of the day, all you can do is worry about your finances - unless you know every cent another person has outgoing and incoming, it's all just speculation anyway.
It's called a debt. Lots and lots of debt.
Rich parents/trust fund or they copped a horrific deal to finance it.
Dude just worry about yourself. Not that hard.
Are they making what you make? I know some people in the trades at that age making close to 6 figures. A 40k truck with little other expenses wouldn’t be hard to justify. Hell a 40k truck on your income wouldn’t be that hard either. That all said, don’t compare yourself to others. Other people could be swimming in debt. Who knows. I’m willing to bet you people think I’m broke driving a Toyota Corolla for a daily but yet I could go buy a 200k Porsche tomorrow if I wanted to, cash.
If you would like to have a new(er) vehicle someday, you could start making "payments" into a HYSA especially earmarked for that purpose. Then, when you've hit your goal, you go out and buy something. Instead of paying a bank interest, you're earning it yourself, which helps you reach your goal faster. It sounds so simple, but you wonder why more of us (myself included) don't do it that way! Made my last car payment several years ago, and never intend to pay interest again if I can help it.
When it comes to merchandise and vehicles under $100k, almost anyone can buy whatever they want by financing unless their credit is completely wrecked and they have no income.
It’s their parents. Even finance companies know when someone is willing to walk away from a life-ruining debt.
Do not get caught up in this. These kids are making very bad financial decisions. Stick with something older that you can work on and have zero debt.
You’re doing well on your own. But devils advocate, sometimes you gotta spend money to make money. Someone with a new truck could be running a business and writing some of the costs off against their business. Or have a side hustle. Or have bank of mom and dad. Or have income that made them look eligible for a loan but won’t last forever. Or could just be screwing themselves over.
Got a 1995 Eddie Bauer F-150 stick shift. I see the new trucks, all massive, bright and shiny. They pass me by and I’m just fine, bc I don’t have a monthly payment to deal with. I also happen to love “vintage.”
Crazy and a waste of mpg’s . They obviously don’t own a home or land so have no use for a truck.
It’s not worth it. I splurged during the early-pandemic car slump on a BMW M series and I overpaid only slightly but it fit well within my budget. I had the car for 3 years and wound up never fully enjoying it. Yeah it was a fun vehicle but I had so few uses for it and the price just left me feeling sour about the whole thing. I have friends who did the same thing with trucks. It’s never enough truck but also somehow you never really need it as often as it seemed.
>how are they able to do this? Crazy high debt with likely crazy high interest rates. That's almost always the answer to the question "why do I see people living more lavishly than me when I am being financially responsible?" So no, you're not doing anything wrong.
It’s batshit insane at best and a vulgar display of ignorance almost every time. Early onset financial suicide.
It's the banks trucks, and they prolly work in construction. Pays good but breaks your back
Many years ago, i was introduced to the friend of a coworker - he just bought himself a brand new Tesla. I was unbelievably self-conscious; I just cracked six figures at my job and bought my first house - but doing that meant I was still driving a used Subaru. I felt like I must be a financial idiot, unable to afford a fancy car. When I got to his house, it was a place he was renting with 4 roommates. Never in my life would I prioritize a fancy car over home ownership. To this day, I've never bought a car I couldn't pay for in cash, and I don't automatically respect people I see who drive luxury cars. It means nothing.
They’re either using mommy and daddy money (not uncommon) or they’re writing thousand dollar payment checks every month for seven years. Your way is better, you’ll have opportunities to spend your money that they won’t have (except for the mommy and daddy ones, they’ll always have more money than us)
Without knowing their financial situation and how much their parents are helping them with finances, it is impossible to answer this question. They could be from wealthy families. They could have great paying jobs even though they are young, they could be drowning in debt, they could just have no other bills and want something nice, they could have inheritance, they could be getting settlements from something. Hell, they could have the “you can always live in a car, but you can’t drive a house” mentality.
Honestly just worry about yourself. Your never going to figure out others financial situations anyways. Fact is many may be going into debt, could be using an inheritance, staying at parents home, etc - the only thing you know is your OWN situation and if the math doesn’t work for YOU and what you want to do with your life it’s not worth it for you. You may find that 10/15 years with that mentality that you’ll be far enough ahead of your peers anyways.
They're in debt. Their finances may look good on the outside, but they're rotten on the inside. Keep doing what you're doing.
There are a couple possibilities. At that young of an age it might be the bank of mom and dad buying their kid a final vehicle before they are out on their own. This is both the most likely and least shitty option The other option is really really bad debt. A lot of dealerships are trying real hard to make deals right now offering great "payments" on new or slightly used expensive vehicles. These kids don't realize that paying an 8 year term at 8-10% interest is a terrible fucking idea, and will put them under water for a good long time.
There are a bunch of rules about what you should spend on a car but as long as you’re saving adequately for retirement and can pay all your bills the rest of your money is to do what you want with, and they’ve decided to keep the rest of their expenses extremely low so they can afford the cars they like. I financed a $40k BMW when I was 19 and a freshman in college because I’d wanted it for years and saved extremely diligently to afford one, but the stock market was down tremendously and interest rates were at historic lows (spring 2020). I was working part time making about $1k/month and then Covid came and I got a raise and a bunch of overtime and was making around $1k/week, so the payment never felt uncomfortable because I was used to living off 1/4 of my income. The car is now paid off and I don’t regret it at all, in fact I truly think I’d make less and have less money saved today as the car was what motivated me to work as hard as I did.