How are there so many $60, $70, $80+ thousand dollar cars on the road??

[Anonymous]

Anonymous wrote:We make a very good living - HHI over $600k. We have three kids in public school and a modest, but nice house. It's expensive of course given the area. Life in general is expensive in this area, as we all know! Apart from the house, we are pretty frugal.

I've been looking into a buying new car and initially aspired to something in the luxury area - a BMW, Audi, or something like that. But I was blown away by the prices. Cars are crazy expensive! There's just no way I can justify spending 60k or 70k on a vehicle. But when I drive around, it seems like every other car is BMW, Tesla, MB, Range Rover, etc - all of which cost $$$$.

So how is it possible that SO many people are buying super expensive cars? At my current income level - which I'm quite happy with - I would never feel comfortable spending that much on a vehicle. Who are all these people???

You make 600K and cant figure how someone purchases a car for $60k?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We make a very good living - HHI over $600k. We have three kids in public school and a modest, but nice house. It's expensive of course given the area. Life in general is expensive in this area, as we all know! Apart from the house, we are pretty frugal.

I've been looking into a buying new car and initially aspired to something in the luxury area - a BMW, Audi, or something like that. But I was blown away by the prices. Cars are crazy expensive! There's just no way I can justify spending 60k or 70k on a vehicle. But when I drive around, it seems like every other car is BMW, Tesla, MB, Range Rover, etc - all of which cost $$$$.

So how is it possible that SO many people are buying super expensive cars? At my current income level - which I'm quite happy with - I would never feel comfortable spending that much on a vehicle. Who are all these people???

You make 600K and cant figure how someone purchases a car for $60k?

Yeah that's OP's post. Do you want a cookie for having reading comprehension skills?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When I saw a fancy, expensive new car on the road I used to think that person must be really good with money. Now I know that they are pretty stupid with money.

Precisely. Cars are depreciating assets and false shields that weak people hide behind.

There is a lot of money around DC. I do mean *a lot of money*. You'd be foolish to think people with fancy cars are struggling with loans and debts. The reality is simply that there are a lot of high earning households around the DMV and in Maryland and Virginia. People have a lot of money. How many times do I need to drive home this point.

Disappointing that all this money translates into the driving of luxury cars for personal satisfaction as opposed to the opening of charitable foundations for the betterment of society. DH and I have an HHI of $3.6M, yet $2.8M of that goes right out the door and into our own foundation to fund scholarships for kids (girls and minorities, especially) pursuing STEM fields in college. We drive a 2021 Hyundai Elantra and a 2017 Toyota Corolla. Guess we’re just cut from a different cloth.

Oh my god. You are so amazing. Allow me to cup your balls and feed you cookies.

[Anonymous]

Maybe it’s the 179 tax write off car thing?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We make a very good living - HHI over $600k. We have three kids in public school and a modest, but nice house. It's expensive of course given the area. Life in general is expensive in this area, as we all know! Apart from the house, we are pretty frugal.

I've been looking into a buying new car and initially aspired to something in the luxury area - a BMW, Audi, or something like that. But I was blown away by the prices. Cars are crazy expensive! There's just no way I can justify spending 60k or 70k on a vehicle. But when I drive around, it seems like every other car is BMW, Tesla, MB, Range Rover, etc - all of which cost $$$$.

So how is it possible that SO many people are buying super expensive cars? At my current income level - which I'm quite happy with - I would never feel comfortable spending that much on a vehicle. Who are all these people???

You make 600K and cant figure how someone purchases a car for $60k?

Yeah that's OP's post. Do you want a cookie for having reading comprehension skills?

It’s ok OP. You only make $60k. Extra zero matters. This explains everything.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When I saw a fancy, expensive new car on the road I used to think that person must be really good with money. Now I know that they are pretty stupid with money.

Precisely. Cars are depreciating assets and false shields that weak people hide behind.

There is a lot of money around DC. I do mean *a lot of money*. You'd be foolish to think people with fancy cars are struggling with loans and debts. The reality is simply that there are a lot of high earning households around the DMV and in Maryland and Virginia. People have a lot of money. How many times do I need to drive home this point.

Disappointing that all this money translates into the driving of luxury cars for personal satisfaction as opposed to the opening of charitable foundations for the betterment of society. DH and I have an HHI of $3.6M, yet $2.8M of that goes right out the door and into our own foundation to fund scholarships for kids (girls and minorities, especially) pursuing STEM fields in college. We drive a 2021 Hyundai Elantra and a 2017 Toyota Corolla. Guess we’re just cut from a different cloth.

Disappointing that you are only giving to girls and minorities.
You could do better.

[Anonymous]

60k for a car is nothing.
We eat out at restaurants once a week and spend on average $200 for 4 people. Multiply by 52 weeks and that’s 10k per year. $50k over 5 years. Restaurants are always busy, so we aren’t the only ones eating out.

Is eating out dumb? Wasteful? Maybe, but we enjoy it. A family who is not eating out could spend that money on a fancy car instead.

Do what you enjoy. Life is short.

[Anonymous]

OP here - appreciate all the comments. Sounds like I'm just on the cautious-side with money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have one kid in college and one in high school. I’m 44, we make a variable income, but usually around 500-650k/yr. After my mega roth, both our 401ks, his ESPP and our HSA straight out of our checks go 96k towards employer based retirement/investments. we then have another 48k that goes into taxable brokerage.

our mortgage is low (we’ve been homeowners since 2001 so have traded up and up[b]), we have a couple of cash flow positive rentals, and did 529 so we don’t have college expenses.

this leaves so so much money left over. Maybe you save more than us, but we should retire with 6M in equities, and a few more million in real estate. It’s not a stretch for my Genesis., which I just spend 80k on. we had kids early and had to get serious early so we are smooth sailing at this point in our lives.

How did you buy a house at age 20?

I graduated high school in 1996, and graduated college in 2000.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have one kid in college and one in high school. I’m 44, we make a variable income, but usually around 500-650k/yr. After my mega roth, both our 401ks, his ESPP and our HSA straight out of our checks go 96k towards employer based retirement/investments. we then have another 48k that goes into taxable brokerage.

our mortgage is low (we’ve been homeowners since 2001 so have traded up and up), we have a couple of cash flow positive rentals, and did 529 so we don’t have college expenses.

this leaves so so much money left over. Maybe you save more than us, but we should retire with 6M in equities, and a few more million in real estate. It’s not a stretch for my Genesis., which I just spend 80k on. we had kids early and had to get serious early so we are smooth sailing at this point in our lives.

No one asked to hear your brag.

then don’t ask the question of people making a high income.

[Anonymous]

Literally everyone who leases a car is dumb.

Actually, anyone who believes this is the one lacking financial acumen. We leased a car last summer and prepaid the 36 month lease. It is a luxury electric vehicle that was under a manufacturer subsidized lease, plus the dealer matched the federal tax deduction being offered for other electric care but not the one we bought. So - we saved roughly 10k on the price we would have paid had we bought the vehicle outright, leaving that money for us to invest. We will buy the car at the end of the lease but kept 50% of the cost and the use of our cash for an extra three years.

[Anonymous]

Disappointing that all this money translates into the driving of luxury cars for personal satisfaction as opposed to the opening of charitable foundations for the betterment of society. DH and I have an HHI of $3.6M, yet $2.8M of that goes right out the door and into our own foundation to fund scholarships for kids (girls and minorities, especially) pursuing STEM fields in college. We drive a 2021 Hyundai Elantra and a 2017 Toyota Corolla. Guess we’re just cut from a different cloth.

Please explain how your HHI is 3.6 and you have 2.8 to donate. I would love to know how you aren’t paying federal and state taxes/SS/insurances, etc. that would total closer to 50% of your income, and then you would still have living expenses, college savings/tuition, health care, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When I saw a fancy, expensive new car on the road I used to think that person must be really good with money. Now I know that they are pretty stupid with money.

Precisely. Cars are depreciating assets and false shields that weak people hide behind.

There is a lot of money around DC. I do mean *a lot of money*. You'd be foolish to think people with fancy cars are struggling with loans and debts. The reality is simply that there are a lot of high earning households around the DMV and in Maryland and Virginia. People have a lot of money. How many times do I need to drive home this point.

Disappointing that all this money translates into the driving of luxury cars for personal satisfaction as opposed to the opening of charitable foundations for the betterment of society. DH and I have an HHI of $3.6M, yet $2.8M of that goes right out the door and into our own foundation to fund scholarships for kids (girls and minorities, especially) pursuing STEM fields in college. We drive a 2021 Hyundai Elantra and a 2017 Toyota Corolla. Guess we’re just cut from a different cloth.

Disappointing that you are only giving to girls and minorities.
You could do better.

NP. Do better? They are donating money to a great cause and it’s not good enough? What foundation do you run?

[Anonymous]

[img]

Anonymous wrote:I have one kid in college and one in high school. I’m 44, we make a variable income, but usually around 500-650k/yr. After my mega roth, both our 401ks, his ESPP and our HSA straight out of our checks go 96k towards employer based retirement/investments. we then have another 48k that goes into taxable brokerage.

our mortgage is low (we’ve been homeowners since 2001 so have traded up and up), we have a couple of cash flow positive rentals, and did 529 so we don’t have college expenses.

this leaves so so much money left over. Maybe you save more than us, but we should retire with 6M in equities, and a few more million in real estate. It’s not a stretch for my Genesis., which I just spend 80k on. we had kids early and had to get serious early so we are smooth sailing at this point in our lives.

LOL

[Anonymous]

Anonymous wrote:

Disappointing that all this money translates into the driving of luxury cars for personal satisfaction as opposed to the opening of charitable foundations for the betterment of society. DH and I have an HHI of $3.6M, yet $2.8M of that goes right out the door and into our own foundation to fund scholarships for kids (girls and minorities, especially) pursuing STEM fields in college. We drive a 2021 Hyundai Elantra and a 2017 Toyota Corolla. Guess we’re just cut from a different cloth.

Please explain how your HHI is 3.6 and you have 2.8 to donate. I would love to know how you aren’t paying federal and state taxes/SS/insurances, etc. that would total closer to 50% of your income, and then you would still have living expenses, college savings/tuition, health care, etc.

It’s called making sacrifices. We don’t all need to live in suburban McMansions, take flashy vacations, or wear designer clothing. For some of us, the thrill in life is knowing that we’re one of the select few responsible for driving society forward in a positive way.