How do so many young families have $80k SUVs?

[Anonymous]

I don't really see much of a correlation between wealth and driving nice cars/SUVs. Most high net worth people I know drive beaters or a used Corolla. They are millionaire next door types maybe worth a couple mill. I used to live in the hood and you would see lots of nice cars. Also worked many low paying jobs back in the day and coworkers had expensive cars as well. I know firefighters driving around in bad ass trucks and I know for a fact they don't make enough money to justify those purchases every few years. When I see someone with a really nice car, I just think that they are either showing off or bad with money.

[Anonymous]

My block of very expensive homes. I have one of cheaper homes. But 2-4 million homes often have old cars in the driveway.

My favorite is neighbor down the block with a 15,000 square foot house on two acres with a 25 year old Ford Employer in driveway with Georgetown, Boston College and Villanova stickers on rear window. He is more on an old money person.

But my old blue collar neighborhood was full of new leased expensive cars in front of 1,400 sf split level homes. Sometimes, Jetskis, boats in driveway while kids went to community college and house needed a new roof and oil burner. It was all for show.

I bet my old neighbor from my blue collar town would laugh at the 25 year old Ford Explorer as he drove by in his brand new GMC Denali he just leased and cant afford.

[Anonymous]

Anonymous wrote:I don't really see much of a correlation between wealth and driving nice cars/SUVs. Most high net worth people I know drive beaters or a used Corolla. They are millionaire next door types maybe worth a couple mill. I used to live in the hood and you would see lots of nice cars. Also worked many low paying jobs back in the day and coworkers had expensive cars as well. I know firefighters driving around in bad ass trucks and I know for a fact they don't make enough money to justify those purchases every few years. When I see someone with a really nice car, I just think that they are either showing off or bad with money.

Anecdotally 2 of the 3 billionaire bosses I have had drove beaters as their personal cars. One drove a 5 year old Avalon the other drove a 15 year old Taurus.

[Anonymous]

Anonymous wrote:I live in suburbia, bordering on cow country. These obnoxious SUVs are everywhere. I don't think most of these people have a decent net worth. Pissing your money way isn't how most people end up with bank as they get older.

I agree with you in concept. But I don’t see a lot of elderly financially struggling people who weren’t always struggling, if that makes sense. I would think this would catch up to them at some point if true.

[Anonymous]

Anonymous wrote:I work near a private school and the pick up line is full of these huge SUVs - Cadillacs and Rivians and more. Many driven by tiny blondes. It’s such a ridiculous sight.

Tiny blondes? Why is this ok to say? What if I said certain cars were driven by fat drab brunettes? Or POC?

[Anonymous]

Anonymous wrote:

Anonymous wrote:The cars are leased.
The husbands ear good money.
They bought houses at low interest with downpayment provided by grandparents.
They have family money so do not worry about saving for retirement.

Yup. Not having to save for retirement must be a game changer. Saving for retirement AND college is a massive drain. PLUS getting financial help to buy a home?

Not if you make enough money. We have zero family help and have saved aggressively from day 1. College is paid for (3 kids) and we have close to $9m saved outside of real estate. Everyone always yells family help but it’s not always the case.

[Anonymous]

Anonymous wrote:We are consistently underestimating how much money is in this area. Many may be leasing, but I'm not convinced there's a lot of meaningful debt in this strata driving these behemoths.

They are paid for in cash and the families don't bat an eye about it.

My daughter in law just paid cash for one of these. Not really any family help. She and my son,( both late 30s) just make a whole lot of money. Right place at the right time lucky jobs and salaries, though they work very hard. They debate going ahead and paying off the house. She wants to, but the their mortgage interest is really low.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I work near a private school and the pick up line is full of these huge SUVs - Cadillacs and Rivians and more. Many driven by tiny blondes. It’s such a ridiculous sight.

Tiny blondes? Why is this ok to say? What if I said certain cars were driven by fat drab brunettes? Or POC?

lol. it’s called jealousy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I work near a private school and the pick up line is full of these huge SUVs - Cadillacs and Rivians and more. Many driven by tiny blondes. It’s such a ridiculous sight.

Tiny blondes? Why is this ok to say? What if I said certain cars were driven by fat drab brunettes? Or POC?

fat drab brunettes: Nissan Altima
POC: Dodge Charger

Ask more, I can do more.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I work near a private school and the pick up line is full of these huge SUVs - Cadillacs and Rivians and more. Many driven by tiny blondes. It’s such a ridiculous sight.

Tiny blondes? Why is this ok to say? What if I said certain cars were driven by fat drab brunettes? Or POC?

fat drab brunettes: Nissan Altima
POC: Dodge Charger

Ask more, I can do more.

Do Asian next.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The cars are leased.
The husbands ear good money.
They bought houses at low interest with downpayment provided by grandparents.
They have family money so do not worry about saving for retirement.

Yup. Not having to save for retirement must be a game changer. Saving for retirement AND college is a massive drain. PLUS getting financial help to buy a home?

Not if you make enough money. We have zero family help and have saved aggressively from day 1. College is paid for (3 kids) and we have close to $9m saved outside of real estate. Everyone always yells family help but it’s not always the case.

+1

We have worked hard for decades. It’s not family money. We help our own parents out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I work near a private school and the pick up line is full of these huge SUVs - Cadillacs and Rivians and more. Many driven by tiny blondes. It’s such a ridiculous sight.

Tiny blondes? Why is this ok to say? What if I said certain cars were driven by fat drab brunettes? Or POC?

fat drab brunettes: Nissan Altima
POC: Dodge Charger

Ask more, I can do more.

Do Asian next.

Lexus RX. Easy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The cars are leased.
The husbands ear good money.
They bought houses at low interest with downpayment provided by grandparents.
They have family money so do not worry about saving for retirement.

Yup. Not having to save for retirement must be a game changer. Saving for retirement AND college is a massive drain. PLUS getting financial help to buy a home?

Not if you make enough money. We have zero family help and have saved aggressively from day 1. College is paid for (3 kids) and we have close to $9m saved outside of real estate. Everyone always yells family help but it’s not always the case.

Good for you for working hard and saving. A bit of humility wouldn’t hurt though. Plenty of people work hard and save aggressively.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Any financial advisor will tell you that one of the worst purchases you can make is an expensive car. These people are buying them for show. The really wealthy and smart people are buying Hondas and Toyotas for cash and keep them for ten years.

This. People who buy these luxury cars to make other think that they're high rollers are usually the ones who are financing them up to their eyeballs. People with real wealth don't need an $80,000 Lexus to show it. They stick with the $35,000 Camry and invest the rest.

OP, don't be jealous of these people.

I don't really agree with this. If someone makes $1m+ a year, buying an $80k lexus vs a $35 camry will not alter their future financial trajectory one bit. And why would someone who has obviously worked hard to get to that level want to drive around in a cheap, ugly, low-performance car like a camry? Treating yourself with a nice car that you spend a lot of time in and want to be safe and secure makes a lot of sense.

Lol, go ask any mechanic what type of car someone should buy who does not want to spend time in repair shops. Toyota is number one, and Honda is (a very distant) second.

Anyone with real money doesn’t care if the car has to go in the shop. You get a loaner when you drop it off.

I’ve even had the dealer drive my car to the service center and drop off the loaner at my house so I don’t have to bother.

Nah. I hate having to deal with mechanics and repairs on my cars. That was true when I had no money and now when we have a $800K HHI with retirement and college savings in the bank. I buy Lexus or Camry simply because I don’t want to deal with taking the car in. Audi or BMW could do a better job at building cars but they choose not to. As an engineer, it pisses me off

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I work near a private school and the pick up line is full of these huge SUVs - Cadillacs and Rivians and more. Many driven by tiny blondes. It’s such a ridiculous sight.

Tiny blondes? Why is this ok to say? What if I said certain cars were driven by fat drab brunettes? Or POC?

fat drab brunettes: Nissan Altima
POC: Dodge Charger

Ask more, I can do more.

Do Asian next.

Lexus RX. Easy.

Indians?