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

[Anonymous]

Anonymous wrote: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

+1

Lots of people with high-paying jobs around here - lawyers, IT, etc.

[Anonymous]

have you seen the cars lined up to get free food handouts? almost all of them drive nice cars. it's all for show

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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

not true at all.

DP, but he is essentially correct.

https://caredge.com/chevrolet/tahoe/depreciation

he said a couple years. a couple is two. your link shows depreciation of roughly 50% after 5 years. that i can agree with.

[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?

In our household DH makes a lot of money.

[Anonymous]

We make $350k and are thinking of getting one of these suvs but pre-owned. Been looking and you can find some as low as in the $40k range with OK mileage and unless your really into cars you can't tell the difference from the outside. We'll never buy new since they lose value the second you drive it off the lot. I think a lot of these folks just make a lot of money. No shame in that.

[Anonymous]

Anonymous wrote:

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.

I also see very few families with these cars in Bethesda. It's all the giant Volvos, Audis, teslas, Rivians, Land Rovers.

Some don’t like big cars because of parking in close-in DC. Further out that’s not a big problem. When I visit relatives in the Midwest, I get so jealous of their enormous grocery store parking spaces. Even my 80-yo parents can park big cars easily in those babies.

[Anonymous]

Tahoe starts below $60K. And older cars look nice at a glance from outside if they've been detailed

[Anonymous]

Many are leased. Like a mortgage it comes down to making monthly payments. Those giant SUVs are awful! Gas Guzzlers that jam parking spaces.

[Anonymous]

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?

[Anonymous]

I also see this and think it's wild. But I think it's often family money. I think this is how a lot of families, even higher earners, in this area afford 3 or more kids. Because otherwise even with a larger income, you will have to be frugal to make housing, education, transportation, and travel work with a family of 5 or 6.

Sometimes a family we a friends with and who we know has a similar income to ours will make some purchase or go on a vacation that is just jaw dropping for us -- not just a bit spendy but like a 40k vacation or renovate a not particularly dated kitchen with all top of the line everything -- and I always assume some family money around. At least I hope that's what it is because if it's debt I worry for them.

[Anonymous]

Anonymous wrote:have you seen the cars lined up to get free food handouts? almost all of them drive nice cars. it's all for show

I thought I was alone in noticing this, thank you!

[Anonymous]

Anonymous wrote:1. husband makes $$$
2. Family money
3. Deep debt

That's it! One of those options!

[Anonymous]

Here is the list of “work vehicles” over 6000lbs that qualify for the big tax deduction:
https://www.taxfyle.com/blog/list-of-vehicles-over-6000-lbs

Quite a few big luxury SUV’s are on the list as well as even a few mini-vans.

[Anonymous]

Anonymous wrote:Here is the list of “work vehicles” over 6000lbs that qualify for the big tax deduction:
https://www.taxfyle.com/blog/list-of-vehicles-over-6000-lbs

Quite a few big luxury SUV’s are on the list as well as even a few mini-vans.

Seems like manufactures design SUVs to hit just past that 6,000lb threshold to increase sales.

[Anonymous]

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.