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

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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).

$2600 a MONTH on cars??! The auto lobby is insane. We make $500k and drive a Toyota and a Subaru.

Not everyone wants to drive around in crappy cars. I'm in the car for 3 hours a day. I want it to be luxurious and if anything happens, I want to push a button and have them come and help with whatever I need. If I bring it to the shop for an oil change, I want a loaner.

So save up for the next car. I drove my last luxury vehicle for 12 years before getting rid of it. It was still very nice at 12 yo. Was able to pay cash for a 100K vehicle then, because I planned (and hadn't had a car payment in 12 years since I had paid cash for previous vehicle as well). To each their own, but unless you are making 800K+, having a 1300/month car payment is ridiculous, even if you drive your car all day for business.

Technology is progressing so rapidly your 12 year car was horribly outdated probably around year 6. In today’s world, lease.

Eh, I have a 23 year old Toyota.

Is it dated? Yes.
Do I have a car payment? No
Do I get to save more and more money every year I keep it going without major repairs? Yes

[Anonymous]

Anonymous wrote:

Anonymous wrote:When one of my coworkers had a baby her parents gifted her a brand new SUV.

I went to private school, so I was accustomed to see this happening (I was on scholarship, no large SUV for me) but my fellow "regular family" coworkers were astounded and jealous.

Your coworker's mistake was admitting that the car was a gift. She easily could have kept that private.

I agree. But most of us made nearly the same salary, and I think people were curious if she got a good deal or something they could afford.

It's weird if you show up at work with an 80k+ vehicle when you don't even make that much in a year.

[Anonymous]

Some cars look nicer than they are. I drive a 14 year old GMC Denali still looks new. Only 69k miles but not worth much.

[Anonymous]

Anonymous wrote:2025 Lexus SC500 for my wife, a 2025 Lexus IS350 for my son, a 2025 Lexus LX700h for my daughter, and a 2025 Lexus NX300 for myself.

I had the SC400 coupe and SC430 convertible; Lexus does not have a model SC500.

[Anonymous]

Anonymous wrote:I recently purchased a 2025 Lexus SC500 for my wife, a 2025 Lexus IS350 for my son, a 2025 Lexus LX700h for my daughter, and a 2025 Lexus NX300 for myself. I love Lexus for its reliability and comfort. I paid cash for these cars because I do not believe in finance, and the amount for these cars is around 1% of my net worth.

Remember Pearl Harbor.

My 86 old aunt drives a Lexus. It is the Japanese Buick.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
You can get a Subaru for less than $50K.
You can get a fully loaded Honda CRV for about $40K.

The CRV is a compact SUV. I can barely take two small children to the beach in my midsize Subaru Forester. I will probably get a 3-row SUV or minivan eventually.

The average new car price is $50K, and you can pay that for a midsize 3-row Toyota Highlander, Hyundai Santa Fe, Kia Sorrento, or Honda Pilot. Lexus TX, Acura MDX, and Land Rover Discovery can cost almost $80K. BMW X7, Mercedes GLS, Porsche Cayenne, and Range Rover can cost a lot more.

Maybe you could spend your money on a course that would teach you how to pack efficiently. I have two large children and have zero problem getting them to the beach in a Honda CRV. When they were small, we had a Honda FIT, and had no problems with that either.

This, thank you. That PP was being ridiculous. Also she said she "can barely" take her kids to the beach in the Forester, which means she can do it, yet she wants more space for... reasons. Which is fine if that's what you want but then you can't complain that it's more expensive. We make do with smaller cars specifically because I don't like spending so much money on vehicles when I'd rather spend it other places. The "cost" of this is that we pack more efficiently when we travel by car and may do things like rent bikes at our destination instead of bringing ours. We are fine with that.

I get so annoyed when people act like they are burdened with the obligation of spending more money to upgrade things like houses, cars, vacations, etc., when the upgrade is always optional and sometimes a double edged sword. You don't have to do anything. If that's your mindset, it is likely driven by seeing neighbors, friends, and family with bigger and more expensive and thinking that creates an imposition for you. It doesn't.

You can always get a luggage rack or an external bike rack for stuff like that and attach that even to a compact car. People who want big cars want them because they have 4+ kids or because they like to have big cars and they like to have "stuff". For most people it's the latter.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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).

$2600 a MONTH on cars??! The auto lobby is insane. We make $500k and drive a Toyota and a Subaru.

Not everyone wants to drive around in crappy cars. I'm in the car for 3 hours a day. I want it to be luxurious and if anything happens, I want to push a button and have them come and help with whatever I need. If I bring it to the shop for an oil change, I want a loaner.

So save up for the next car. I drove my last luxury vehicle for 12 years before getting rid of it. It was still very nice at 12 yo. Was able to pay cash for a 100K vehicle then, because I planned (and hadn't had a car payment in 12 years since I had paid cash for previous vehicle as well). To each their own, but unless you are making 800K+, having a 1300/month car payment is ridiculous, even if you drive your car all day for business.

Technology is progressing so rapidly your 12 year car was horribly outdated probably around year 6. In today’s world, lease.

Eh, I have a 23 year old Toyota.

Is it dated? Yes.
Do I have a car payment? No
Do I get to save more and more money every year I keep it going without major repairs? Yes

Yep. 10 year old Nissan Armada. Not one dime paid in repairs, just maintenance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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).

$2600 a MONTH on cars??! The auto lobby is insane. We make $500k and drive a Toyota and a Subaru.

Not everyone wants to drive around in crappy cars. I'm in the car for 3 hours a day. I want it to be luxurious and if anything happens, I want to push a button and have them come and help with whatever I need. If I bring it to the shop for an oil change, I want a loaner.

So save up for the next car. I drove my last luxury vehicle for 12 years before getting rid of it. It was still very nice at 12 yo. Was able to pay cash for a 100K vehicle then, because I planned (and hadn't had a car payment in 12 years since I had paid cash for previous vehicle as well). To each their own, but unless you are making 800K+, having a 1300/month car payment is ridiculous, even if you drive your car all day for business.

Paying 100,000 for a car is ridiculous too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When one of my coworkers had a baby her parents gifted her a brand new SUV.

I went to private school, so I was accustomed to see this happening (I was on scholarship, no large SUV for me) but my fellow "regular family" coworkers were astounded and jealous.

Your coworker's mistake was admitting that the car was a gift. She easily could have kept that private.

I agree. But most of us made nearly the same salary, and I think people were curious if she got a good deal or something they could afford.

It's weird if you show up at work with an 80k+ vehicle when you don't even make that much in a year.

Traditional sexism - people would just assume her husband is the bread winner and she needs to be laid off because someone else is supporting her.

[Anonymous]

Anonymous wrote:I recently purchased a 2025 Lexus SC500 for my wife, a 2025 Lexus IS350 for my son, a 2025 Lexus LX700h for my daughter, and a 2025 Lexus NX300 for myself. I love Lexus for its reliability and comfort. I paid cash for these cars because I do not believe in finance, and the amount for these cars is around 1% of my net worth.

Did they give you a wholesale discount from the dealer?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I assume it's family money or debt if they are 35 and driving an $85k SUV.

And I assume you are poor.

DP

I assume you're an a$$

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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).

$2600 a MONTH on cars??! The auto lobby is insane. We make $500k and drive a Toyota and a Subaru.

Not everyone wants to drive around in crappy cars. I'm in the car for 3 hours a day. I want it to be luxurious and if anything happens, I want to push a button and have them come and help with whatever I need. If I bring it to the shop for an oil change, I want a loaner.

So save up for the next car. I drove my last luxury vehicle for 12 years before getting rid of it. It was still very nice at 12 yo. Was able to pay cash for a 100K vehicle then, because I planned (and hadn't had a car payment in 12 years since I had paid cash for previous vehicle as well). To each their own, but unless you are making 800K+, having a 1300/month car payment is ridiculous, even if you drive your car all day for business.

Paying 100,000 for a car is ridiculous too.

For most people yes.

But we are retired, uhnw, own two homes outright (worth over $6 M combined) and can live the life we want for 30+ years and not touch any principal and still leave wealth in the uhnw range.

So why wouldn't we spend it for our enjoyment.
It's a luxury EV and fits our lifestyle

Also key is we paid cash. Have been doing that for 25 years. So if you find a way to save for a luxury car and can pay cash (and are still saving for college and retirement why not treat yourself?

[Anonymous]

Anonymous wrote:Some cars look nicer than they are. I drive a 14 year old GMC Denali still looks new. Only 69k miles but not worth much.

No one is impressed by your 14 year old Denali.

[Anonymous]

Anonymous wrote: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?

They aren't teachers. Also, $Parent$

[Anonymous]

We own 4 cars outright. Two are 2 years old and we paid $120k each for, 2 are 4 years old we paid between 70-30k for.