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

[Anonymous]

Debt. Or gift from parent.

[Anonymous]

THEY ARE LEASING THEIR CARS

[Anonymous]

I work near a private school and the pick up line is full of these huge SUVs - Cadillacs and Rivians and more. Many driven by tiny blondes. It’s such a ridiculous sight.

[Anonymous]

Anonymous wrote:I live in suburbia, bordering on cow country. These obnoxious SUVs are everywhere. I don't think most of these people have a decent net worth. Pissing your money way isn't how most people end up with bank as they get older.

I live in NWDC. The big ones are almost always government vehicles, for hire with Va tags, or MD/Va parents driving their kids to school in DC.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I live in suburbia, bordering on cow country. These obnoxious SUVs are everywhere. I don't think most of these people have a decent net worth. Pissing your money way isn't how most people end up with bank as they get older.

I live in NWDC. The big ones are almost always government vehicles, for hire with Va tags, or MD/Va parents driving their kids to school in DC.

I drop off in DC too, and yes, the big ones are for hire or government. And they just park in the primo drop off zone spots. So irritating. Local parents with big cars usually get minivans.

[Anonymous]

We are consistently underestimating how much money is in this area. Many may be leasing, but I'm not convinced there's a lot of meaningful debt in this strata driving these behemoths.

They are paid for in cash and the families don't bat an eye about it.

[Anonymous]

Anonymous wrote:We are consistently underestimating how much money is in this area. Many may be leasing, but I'm not convinced there's a lot of meaningful debt in this strata driving these behemoths.

They are paid for in cash and the families don't bat an eye about it.

A lot of people have money and spend it and then spend MORE than they have to keep up with the joneses.

[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.

Lol, go ask any mechanic what type of car someone should buy who does not want to spend time in repair shops. Toyota is number one, and Honda is (a very distant) second.

[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.

Lol, go ask any mechanic what type of car someone should buy who does not want to spend time in repair shops. Toyota is number one, and Honda is (a very distant) second.

Anyone with real money doesn’t care if the car has to go in the shop. You get a loaner when you drop it off.

I’ve even had the dealer drive my car to the service center and drop off the loaner at my house so I don’t have to bother.

[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.

Correct! For people who are truly wealthy (and not hanging on to it by a thread) dropping $80k for a car is a drop in the bucket.

Why in the world would they drive a camry! Yes, i understand there are some families that have a frugal psychology that’s been passed down - I do think it’s because they’re living off inherited wealth that they want to preserve and they’re not generating new wealth.

But in most cases, wealthy people spend money on cars.

[Anonymous]

I don't really see much of a correlation between wealth and driving nice cars/SUVs. Most high net worth people I know drive beaters or a used Corolla. They are millionaire next door types maybe worth a couple mill. I used to live in the hood and you would see lots of nice cars. Also worked many low paying jobs back in the day and coworkers had expensive cars as well. I know firefighters driving around in bad ass trucks and I know for a fact they don't make enough money to justify those purchases every few years. When I see someone with a really nice car, I just think that they are either showing off or bad with money.

[Anonymous]

My block of very expensive homes. I have one of cheaper homes. But 2-4 million homes often have old cars in the driveway.

My favorite is neighbor down the block with a 15,000 square foot house on two acres with a 25 year old Ford Employer in driveway with Georgetown, Boston College and Villanova stickers on rear window. He is more on an old money person.

But my old blue collar neighborhood was full of new leased expensive cars in front of 1,400 sf split level homes. Sometimes, Jetskis, boats in driveway while kids went to community college and house needed a new roof and oil burner. It was all for show.

I bet my old neighbor from my blue collar town would laugh at the 25 year old Ford Explorer as he drove by in his brand new GMC Denali he just leased and cant afford.

[Anonymous]

Anonymous wrote:I don't really see much of a correlation between wealth and driving nice cars/SUVs. Most high net worth people I know drive beaters or a used Corolla. They are millionaire next door types maybe worth a couple mill. I used to live in the hood and you would see lots of nice cars. Also worked many low paying jobs back in the day and coworkers had expensive cars as well. I know firefighters driving around in bad ass trucks and I know for a fact they don't make enough money to justify those purchases every few years. When I see someone with a really nice car, I just think that they are either showing off or bad with money.

Anecdotally 2 of the 3 billionaire bosses I have had drove beaters as their personal cars. One drove a 5 year old Avalon the other drove a 15 year old Taurus.