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

[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.

[Anonymous]

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.

[Anonymous]

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.

+1

We make over $1M and I just buy whatever car I like the most. Sometimes it's >$100k and sometimes it's closer to $50k. I don't worry about the price; I worry about the function and comfort. I wouldn't intentionally buy a cheaper car to save a few bucks. And I wouldn't intentionally buy a $$$$$ to impress anyone else.

[Anonymous]

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.

+1

We make over $1M and I just buy whatever car I like the most. Sometimes it's >$100k and sometimes it's closer to $50k. I don't worry about the price; I worry about the function and comfort. I wouldn't intentionally buy a cheaper car to save a few bucks. And I wouldn't intentionally buy a $$$$$ to impress anyone else.

you must buy a lot of cars

[Anonymous]

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.

The Camry is one of the best selling cars on the planet, so clearly millions of people aren't bothered by driving this "cheap, ugly, low-performance car".

[Anonymous]

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.

Because only $80,000+ cars are safe...

[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?

Easy. Money in the driveway instead of in the bank

[Anonymous]

LEASE. They lease the cars.

[Anonymous]

Everyone who doesn't live that lifestyle thinks its just debt. But i really think the whole DC Metro area is disproportionately wealthy compared to most of the country. Some of it is high income and some is passed down through family.

I think ive met one person in my life who tried to over leverage debt to live a luxurious lifestyle and ended up bankrupt. Its more common I see poor people living like their poor and wealthy people living like they're wealthy.

[Anonymous]

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.

The point is that most of the people in this scenario are NOT the $1m earners.