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

[Anonymous]

I am a teacher off for the summer. Everywhere I look there seems to be a SAHM running errands with 3+ little kids getting into a brand new looking Suburban, Tahoe, Expedition, etc. These moms look 35 or less. I see this in the dismissal car line at our public school too. How do they afford this?

[Anonymous]

1. husband makes $$$
2. Family money
3. Deep debt

[Anonymous]

Before they were a SAHM, they had a high-paying job and saved

Their spouse has a high-paying job

Their parents bought it and "passed it down" a couple years later

It's not a SAHM, it's a nanny driving the family's nice SUV

[Anonymous]

Debt, debt, and debt.

[Anonymous]

Different priorities.

The receptionist at my doctors office this morning was talking about the challenges of parking her brand new massive SUV, and then bemoaning that her child is off to college next year with no college fund.

But there’s also a lot of money out there.

[Anonymous]

You can get any of those cars a couple years used for like $40k.

[Anonymous]

HELOCS
Second mortgages or refinancing to include cost.

[Anonymous]

They have more money.

[Anonymous]

Remember that 80-85% of all new cars are wither leased or financed.

[Anonymous]

I think a lot of it is spouses with high paying jobs plus family money. My kids public school is filled with these families. We live in an old tiny house in Bethesda, and I’m always amazed at all my kids friends who live in $2.5 million plus houses, drive expensive cars, send kids to sleepover camp that’s at least $15k per kid, mom’s have multiple expensive purses, fancy vacation etc. I assume spouses are making big salaries and grandparents help too.

[Anonymous]

People spend a lot on vehicles. 10-15% of income after taxes is recommended by a lot of financial advice websites. So if you make $300K around here (prob below average for mid 30s professional in lobbying, law, tech, etc) your car payments could be up to $2625 a month.

I personally think that’s INSANE but I’ve come to realize a lot of people in the DC area spend as much as they can afford (eg they’ll go for the max 28% DTI mortgage ratio, max car payment, etc).

[Anonymous]

Anonymous wrote:I think a lot of it is spouses with high paying jobs plus family money. My kids public school is filled with these families. We live in an old tiny house in Bethesda, and I’m always amazed at all my kids friends who live in $2.5 million plus houses, drive expensive cars, send kids to sleepover camp that’s at least $15k per kid, mom’s have multiple expensive purses, fancy vacation etc. I assume spouses are making big salaries and grandparents help too.

^ This. Most families with family $ help ALSO have really high paying jobs. I know that’s hard for people who don’t have family $ to understand because it seems so unfair, but life isn’t fair and it gets so much easier once you realize that.

[Anonymous]

The average household income in NW DC is over $200,000. That's the average.

[Anonymous]

Anonymous wrote:The average household income in NW DC is over $200,000. That's the average.

But they're all still poor according to them.

[Anonymous]

I acutally think that those huge boats are often leased, not purchased. Our realtor told us she gets a tax incentive to lease a vehicle but it has to be a giant SUV; if it's fewer than X tons it doesn't qualify.