People with new cars aren't fooling anybody: they're making payments and they're poor. I just can't seem to comprehend why people think it is so important to drive a new car. It makes no sense whatsoever.
Most new cars people drive usually cost around $20 - $30k. But people don't BUY new cars -- they lease them or make payments on them. And with new cars comes full insurance coverage. So when people buy new cars they are really making payments and then paying another $100+/mo for insurance. Moreover, as soon as you drive a new car off the lot it drops at least 10 - 20% in value. Every way you look at driving a new car is a loss. Does this sound like something a rich person would do?
But for some reason people still think that a new car is a sign of being successful, special, intelligent or rich. It means none of these things. When I see somebody driving a new car I immediately know they are poor. I know this because most people are poor. And if everybody is driving new cars then these people are poor. If you're like most people you're not special. Most people make payments on cars they can't afford. Congratulations, you're average making below average decisions. Everybody on the road also has a new car that they can't afford. Way to stand out and be different.
Now sure, there are a few people who might buy a Ferrari or Rolls Royce cash who aren't poor. I'm not talking about these people. I'm talking about the serfs who drive bank-owned property thinking they are special -- the people who get the ego boost doing what everyone else is doing thinking they are unique. Way to go guys. You might fool the other poor people but you don't fool me.
8 Comments
Yep, it's ridiculous. When I see someone with a new mid-range BMW 5-series, I immediately know that's a person making below average decisions. If he could actually afford a new car, he would have gone for top of the range - or a 7-series. My rich uncle (yes, really) hasn't bought a new car in his life - secondhand one year old quality cars are good enough for him, and he saves a major amount as compared to buying a new car. But that's what rich people do. Is that why they are rich in the first place, perhaps?
Yep, you're right. They always go for the 3 series or 5 series because they're entry level. Or they go for the C300 Benz. And it's funny if you think about it.
If they really had 30 or 40k cash they could skip the 3 series and just buy a few year old S550, A8 or 7 Series with low miles for about the same price. But they can't because they're poor and can only afford entry level new vehicles with payments.
These are exactly my thoughts. This is how most people in America get their cars and it's pathetic. I honestly believe until Americans learn to appreciate the value of money this country isn't going to be turned around.
Buying off credit and making payments makes it seem as money is cheap and easy to get, when in reality it isn't.
I know plenty of people who bought really expensive cars while they are barely making it with their home mortgage payments in time. I have never understood what's the point in all this, they care too much about what strangers might think about them, they prefer to pretend to be wealthy thinking they might be envied by everybody else . If they were smarter they would go for a pre-owned car and start saving money instead.
I had to file for chapter 13 just to get out from my car payment. This article is EXACTLY on the money, I used to have this giant ego, I had a new 2010 Mustang, but after continual $400 monthly payments plus $120 insurance on a $1,500 take home, I had to take payday loans just to pay my other bills. Part of it was not my fault, since my company got bought out and they reduced the size of my paychecks due to revised payday schedules, so it would take me 6 months(1) to recoup what I would have gotten over the bi-monthly method. So, I gave the Mustang back to Ford Credit AFTER (keyword) I had filed for chapter 13, putting a stay of execution in place so it did not count as a repo. I didn't pay anything out of pocket, but I do have to pay $69 every two weeks for another 30 months to get out of the deal, and I'm glad I did, because now I have a good running little car that I own that gets 40 MPG, and NO PAYMENTS! I tossed out the ego, and took on some humility, the car doesn't turn heads but it gets me from A to B and everything works great and it feels new. But what feels good is having one paycheck every two weeks that's just for me and not Ford Credit or any other lender. Screw new, I say, if you don't have the cash, forget it!
The worse thing to do is pay cash for a car. If cash is king then why would anyone part with their hard-earned money on a depreciating asset? Cars don't run forever. I have an old BMW 540i and I just dropped $3500 in a new transmission. That's a pretty good car payment for 18 months, alone. Leasing might not make sense for everyone, but it certainly doesn't make us poor. Shopping for reasonable cash is king makes a lot of sense when you do it for the right reason and with a car that fits your monthly budget.
When you make a reasonable deal on a car lease, you save money on a car that will never have a repair issue and is much safer and reliable to drive than that 15 year old beater.
If you run the numbers cash almost always comes out as the better deal on a car purchase. Cars are leased because it's a good business model for the dealer.
It's all about the ego isn't it. We need a new car to look good and impress other human beings. Some are impressed but those that matter really don't care. If that isn't enough we take on a persoonlijke lening for all our other expenses, because we don't have any money left at the end of the month because all of our loans.
