The average monthly car payment in the US is $733

[therealdope]

He told us that he was working with a couple that was trying to buy a house and they both had car payments that were close to $1000. For a Mercedes and an Escalade.

.

I think this is a lot more common than most people think. Maybe not at the median household income of the US but above that, it would not surprise me if it was a high percentage.

I have seen so many dumb purchases based on someone looking at what their neighbors or friends have and saying, "hey, how come he has XYZ? I'm just as good as that guy ... so I'll just go ahead and buy something that doesn't really mean anything to me". It's an affirmation security blanket.

I'm sure I've posted this before but I'll go one more time. We live in an area where a large percentage of homes are owned by physicians working at two close by teaching hospitals. Medical specialists are the lighten rod for dumb purchases. When we moved to the area I noticed an unusual portion of houoses having 2 BMWs. Two, never just one. Usually a 5- or 7 series and X5 or X3. Over the next 4 years they slowly converted to mercedes. I don't know why, but it happened. So I'm watching the Seahawks-Broncos SB and Mercedes is pushing car ads frequently during the game and I decide to check the prices.

At that moment I realize the cars that are in these driveways are $75-110k. There is no way that each of these houses are dropping $200k in cash to buy cars. You can bet they are all leased. Go online and see what a Mercedes lease goes for.

 

[therealdope]

There are a lot of posters here saying, "I only buy used" or "leasing is dumb" or "I buy with cash" ... but there are a lot of regular posters not jumping into this discussion.

Is there an anonymous poll tool that we could use to find out how many people have leases above $500/month?

 

[wildchild88]

dude I had a 3rd generation Honda Prelude and a 5th generation in 1998

I love preludes.. never got the love they deserved

 

[Oblivian]

Our van was nearly $500 at .9% interest. Some of the financial advice that I see on this forum is absolutely nuts. "Pay off your house immediately OMG!". Right, rush to pay off that 4% mortgage rather than pump some more money into your IRA or 401k. Not all debt is bad debt.

 

[TeTe]

There are a lot of posters here saying, "I only buy used" or "leasing is dumb" or "I buy with cash" ... but there are a lot of regular posters not jumping into this discussion.

Is there an anonymous poll tool that we could use to find out how many people have leases above $500/month?

Not sure about leases, but I'm sure a lot of poster have payments that are high that won't admit it.

My payment is about $400 a month. Which really isn't bad considering how much I paid for my car. But at the end of day... I'm a car guy and value what I drive way more than the average person. Sometimes I wish I could buy a car to get me from A to B and that's all that matters.... but I'm not. I value the driving experience. Money well spent and I can more than afford it.

 

[chardog]

Our van was nearly $500 at .9% interest. Some of the financial advice that I see on this forum is absolutely nuts. "Pay off your house immediately OMG!". Right, rush to pay off that 4% mortgage rather than pump some more money into your IRA or 401k. Not all debt is bad debt.

well, paying off debt is a sure thing, even if interest is low, and it's a worthy goal. My 401 is losing a lot, my stocks sure as hell are.......

as long as your money goes towards an asset, in general, you're paying in the right direction.

 

[AGGAMEMNON66]

Our van was nearly $500 at .9% interest. Some of the financial advice that I see on this forum is absolutely nuts. "Pay off your house immediately OMG!". Right, rush to pay off that 4% mortgage rather than pump some more money into your IRA or 401k. Not all debt is bad debt.

Thing is you’re dealing with a lot of people that don’t actually have anything when in these discussions, and a lot that lie about what they do have. That’s the internet for you tho

 

[AGGAMEMNON66]

Not sure about leases, but I'm sure a lot of poster have payments that are high that won't admit it.

My payment is about $400 a month. Which really isn't bad considering how much I paid for my car. But at the end of day... I'm a car guy and value what I drive way more than the average person. Sometimes I wish I could buy a car to get me from A to B and that's all that matters.... but I'm not. I value the driving experience. Money well spent and I can more than afford it.

Yep. It all comes down to what are your personal interests and what are you ultimately working for in the 1st place. Guys like you and I will spend money on a car because we’re into it -it’s a hobby/interest. Others won’t because it’s nothing more than a means to an end for them, and that’s fine too.

 

[method115]

I have a hard time believing that statistic is true. I don't know anyone who pays $700 a month in car payments.

Generally $300-500.

For the record I do not make car payments I always buy cash cars, but I have been burned doing this before.

Same having a really hard time believing this. Maybe if they only asked people who live in NY and California. I wont go over $300 for car payments. The last car I got was a brand new Corolla 2020 for 18.5k not including taxes and all that. I only buy new if it's a Corolla and Civic because I know I can drive those things for a decade +.

 

[PG29 red0 Jr]

I just bought a new car last night, and the payment is $1300 a month.

Those $700 a month numbers are for rookies.

 

[HYBRID_CFC]

Just trying to normalize high payments. None of those dealership employees pay anywhere near that for their car. All staged bullshit.

Also, $190 a month car payment gang FTW!

 

[chimpoehurricane]

I think this is a lot more common than most people think. Maybe not at the median household income of the US but above that, it would not surprise me if it was a high percentage.

I have seen so many dumb purchases based on someone looking at what their neighbors or friends have and saying, "hey, how come he has XYZ? I'm just as good as that guy ... so I'll just go ahead and buy something that doesn't really mean anything to me". It's an affirmation security blanket.

I'm sure I've posted this before but I'll go one more time. We live in an area where a large percentage of homes are owned by physicians working at two close by teaching hospitals. Medical specialists are the lighten rod for dumb purchases. When we moved to the area I noticed an unusual portion of houoses having 2 BMWs. Two, never just one. Usually a 5- or 7 series and X5 or X3. Over the next 4 years they slowly converted to mercedes. I don't know why, but it happened. So I'm watching the Seahawks-Broncos SB and Mercedes is pushing car ads frequently during the game and I decide to check the prices.

At that moment I realize the cars that are in these driveways are $75-110k. There is no way that each of these houses are dropping $200k in cash to buy cars. You can bet they are all leased. Go online and see what a Mercedes lease goes for.

It's true. It's very common for this. I know 1 who went through the divorce blender. He has 3 jobs. Looks like shit. Works nonstop. Miserable af. Has title of doctor. Has nothing to show for. Taken to the cleaners.

Wifey poo needs a new range rover and mcmansion. Intelligent MD but lacking common sense.

This isn't everyone of course. Still very common. Like if 1 bad purchase wasn't good enough.

 

[chimpoehurricane]

Just trying to normalize high payments. None of those dealership employees pay anywhere near that for their car. All staged bullshit.

Also, $190 a month car payment gang FTW!

I prefer Asian imports and 0 payments but I digress.

My buddy works for a large dealership as a sales manager. Pick a car on the lot. He drives it. Pays nothing but gas. He gets bored fast. It all loses its appeal with time.

 

[Anung Un Rama]

There are a lot of posters here saying, "I only buy used" or "leasing is dumb" or "I buy with cash" ... but there are a lot of regular posters not jumping into this discussion.

Is there an anonymous poll tool that we could use to find out how many people have leases above $500/month?

I've never leased, I always thought they were less expensive than financing, but they seem more expensive. Buying cars is scary to me because I tend to be a mark, so the leasing word is confusing to me. I'm getting ready to buy a new, you heard that right SD, NEW, 4Runner. My current baby is 18yo and its time.