"LJ909" (lj909)
03/06/2018 at 14:05 • Filed to: None
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"LJ909" (lj909)
03/06/2018 at 14:05 • Filed to: None | 0
| 40 |
Ok here’s the last one for you guys since I’m going to be changing jobs I wont really get to see how broke people are anymore. Here we have a 27 year old girl making about $5500 a month (gross). Pulled up in a weird yellow Lexus RC350 F Sport that I didn’t even know came in that color. Now its loaded. Her report puts the car at damn near 51 grand meaning she got most if not all options. Her terms? 89 months @ $799 a month. Meaning shes going to be paying a little over $72 thousand bucks for $50 thousand dollar Lexus coupe.
Captain of the Enterprise
> LJ909
03/06/2018 at 14:22 |
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Oh my, I’m so glad I just bought my corolla for $3,500 I don’t know if I’ll ever be able to afford a new better than beater status car. It’s just so expensive and I’ll be trying to pay off my student loans and paying for my housing and etcetera. I can’t believe that people are taking these loans and that they are allowed to be offered.
KingT- 60% of the time, it works every time
> LJ909
03/06/2018 at 14:28 |
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I got a mini heart-attack just from reading that. Financial education 101 should be mandatory in High school and College IMO. Although I will admit it’s a nice Yellow
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LJ909
> Captain of the Enterprise
03/06/2018 at 14:29 |
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Many of us Millennials that can afford stuff dont make good decisions with the money that we do have.
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LJ909
> KingT- 60% of the time, it works every time
03/06/2018 at 14:30 |
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Ive been pushing teaching financials being taught in high school since I started college. Never understood how its all thrust upon people.
But yea I do have to say the color looked damn good in person. Its almost like a honey mustard.
functionoverfashion
> LJ909
03/06/2018 at 14:31 |
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Thanks for sharing these, and Great Googly Moogly that’s insane.
Milky
> LJ909
03/06/2018 at 14:31 |
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So she makes $66k a year and thought she could afford a car thats almost that much. No.
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LJ909
> Milky
03/06/2018 at 14:32 |
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Its simple math. I never got why people never thought about it that way “Ok I make $50 grand a year, maybe I shouldnt buy a $45 thousand dollar car”.
Neil drives a beetle and a fancy beetle
> LJ909
03/06/2018 at 14:35 |
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I think I got kinja’d but my point was basically; come on why not a modest 2 series? Still too much car for her income(maybe) but it would give the same image. Also, it seems like no or lo down payment was involved.
fintail
> LJ909
03/06/2018 at 14:35 |
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And using simple interest, that’s only a marginally high rate of like 5.5% or so, right? Long term financing, you pay to play.
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LJ909
> Neil drives a beetle and a fancy beetle
03/06/2018 at 14:38 |
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She could have gone 2. Hell she could have gone used for an RC and saved herself $15-$20 grand. But some people just have to have a new car. I also assumed she didn’t put much down. The amount of people that are willing to do a low down payment and be ok with a high monthly has always baffled me.
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LJ909
> fintail
03/06/2018 at 14:39 |
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Right. But she cant afford the car and the dealer knows this which is why they probably pushed the 89 months on her. A standard 60 or hell even 72 month term would see those payments be pushing a grand.
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fintail
> LJ909
03/06/2018 at 14:43 |
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I’m assuming little to nothing down, too. I often look at the “can’t afford it” rule also including if you can’t put a good 10% down - or more.
Regarding financial literacy classes, I strongly suspect the FIRE cabal has lobbied to keep these out of schools.
SPAMBot - Horse Doctor
> LJ909
03/06/2018 at 15:19 |
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Jeeze, that is insane. I can’t imagine paying nearly 15% of my gross for over 7 years. She will never be shiny side up on that loan. Maybe save that $800/month, for even just a year, and have a yourself a decent down-payment. Hopefully she has roommates or still lives with her parents.
I’m not necessary opposed to someone buying a car worth their annual salary, but you should have a huge down-payment so you are not financing your annual salary. At least it’s a nice car and not $800/mo for a Dodge Journey ¯\_()_/¯
shop-teacher
> LJ909
03/06/2018 at 15:36 |
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Eighty .... Nine .... Months .....
Eight ..... Hundred ..... Dollars .....
For Eighty .... Nine ... Months .....
How in the hell does one fool themselves into thinking they can actually afford that?
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LJ909
> shop-teacher
03/06/2018 at 15:38 |
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Being young. And making over 60 grand a year and being young.
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Neil drives a beetle and a fancy beetle
> LJ909
03/06/2018 at 15:38 |
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Who wants to sit on someone else’s flatulence?
But seriously, I almost get more dismayed when these stories are about people who have the means and (presumably) the education to not do this. If you make 66k a year you should understand the basics behind financing and budgeting; if you never received a high school education and you desperately need a car, I understand how you got in the crappy situation.
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LJ909
> Neil drives a beetle and a fancy beetle
03/06/2018 at 15:41 |
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With money comes stupidly, especially at a young (below 35) age.
Eric @ opposite-lock.com
> shop-teacher
03/06/2018 at 16:15 |
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That is a ridiculous loan, but I pay more than that every month for personal training. It all depends on where you live and what you make.
But making 66k, that’s pretty ridiculous. They can certainly afford to pay it, but it’s a big chunk of their income.
Also not an uncommon situation in SoCal to live in squalor and spend almost as much as a reasonable place would cost on car payments. Your car is your life down there.
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Eric @ opposite-lock.com
> LJ909
03/06/2018 at 16:21 |
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I didn’t put anything down on my car. 60 month loan at 0%, I figured I might as well keep the capital since all the incentives/rebates were the same.
Another funny fact is that the incentive I was given for my ex’s 2004 Chevy Malibu being registered at my address was greater than the value of the car itself.
ZHP Sparky, the 5th
> LJ909
03/06/2018 at 16:23 |
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Yikes, people are crazy. Making a decent bit above that, but still any car payment over say $300-350 and 48 months really makes me feel nervous.
At least in some sense it’s comforting knowing that a good portion of those Joneses out there who seem to be “pulling ahead” of us in life are in reality just making supremely bad decisions.
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Eric @ opposite-lock.com
> LJ909
03/06/2018 at 16:23 |
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Not on the test? Not in the curriculum.
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ZHP Sparky, the 5th
> LJ909
03/06/2018 at 16:25 |
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I’d say it’s also a matter of knowing jack shit about cars. At one point I was young and making $65k starting my career and wanted a fun car too. So I bought a pre-owned S2000 for $18K.
There is literally zero need to drop that kind of money on a car – especially if all you care about is image, as I suspect is the case with this buyer. There are plenty of cars out there that look expensive and grab attention but only cost a fraction of that amount.
themanwithsauce - has as many vehicles as job titles
> LJ909
03/06/2018 at 16:26 |
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OOOOOOOOOOOOOOOOOOUUUUUUUUUUUUUUUUUUUCCCCCCCCCCCCCHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
If that’s pre-tax 5500, I make a touch less than that. 20 grand was my target. 25k was an absolute hard limit and only if I planned to save for a bit longer for a bigger down payment.
WTF gets into people that they just have to have things they can’t remotely afford?
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Eric @ opposite-lock.com
> SPAMBot - Horse Doctor
03/06/2018 at 16:28 |
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Or rolling negative equity from repeated stupid purchases into a Dodge Dart. The dude I got my winter wheels from did exactly this. It was like his 4th or 5th negative equity trade in the last couple years prior to that. The penultimate car was a 2013 Focus ST with 35k miles that he got used in 2015 with a 10% loan for more than I paid for my brand new one (with effectively the same specs). I got the wheels cheap when he swapped on some ugly aftermarket ones. About 6 months later he realized that he couldn’t afford that one the $25k or so he was making and traded it in for a used Dodge Dart.
My mind is still boggled. Last I checked, he was basically trapped in that car because it depreciated so much faster than previous cars.
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shop-teacher
> LJ909
03/06/2018 at 16:34 |
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I was young. I was young and single and making decent money ($50k a year by 27). I did some dumb financial stuff too. Nothing even approaching that level though!
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SPAMBot - Horse Doctor
> Eric @ opposite-lock.com
03/06/2018 at 16:41 |
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Just reading that stresses me out!
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LJ909
> ZHP Sparky, the 5th
03/06/2018 at 17:02 |
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And in the line of work I have been in seeing this stuff, a lot and I mean A LOT of people are making some down right bad financial decision. From $125k tax liens to having -$350 in the bank account of someone making 8 grand a month, a lot of people are bad with money.
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LJ909
> ZHP Sparky, the 5th
03/06/2018 at 17:04 |
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Exactly. But its all for show. Its why people are content in paying $500 bucks a month for 80 months on a base BMW 420i GC but wont drive a Kia Stinger which is a better car for less.
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LJ909
> themanwithsauce - has as many vehicles as job titles
03/06/2018 at 17:06 |
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People see a badge and perception because of that badge before anything. And when it comes to cars that alone cancels out any rationality.
promoted by the color red
> LJ909
03/06/2018 at 17:19 |
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Good God...
I make about that much pre-tax and I had to save up for a year & think about my finances very carefully before buying a Miata. I still think it’s shocking how some people will miss the forest for the trees when they buy on monthly payments.
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shop-teacher
> Eric @ opposite-lock.com
03/06/2018 at 17:35 |
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You can buy very nice cars to spend your time in, for much less money.
Bman76 (hates WS6 hoods, is on his phone and has 4 burners now)
> LJ909
03/06/2018 at 19:01 |
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But that would end the debt cycle and we can’t have that...
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themanwithsauce - has as many vehicles as job titles
> ZHP Sparky, the 5th
03/06/2018 at 19:20 |
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I love to brag about my deal cause it’s so good - brand new focus ST for 17k. I’m rolling on brand new wheels for under 300$/mo on the 60 month loan. Insurance and gas make it out to about 450$/mo for a brand new 250hp hot hatch. I said in a previous comment, I make a few grand less a year than this case. This car fits my life and budget like a glove.
I’m with you - you can have some sweet wheels while staying in budget if you just take some time to think about it.
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themanwithsauce - has as many vehicles as job titles
> LJ909
03/06/2018 at 19:21 |
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Oh god, I can’t imagine insurance and gas on that beast is cheap either.
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ZHP Sparky, the 5th
> themanwithsauce - has as many vehicles as job titles
03/06/2018 at 19:35 |
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That sounds like a fantastic deal. As a jalop that’s the problem though...with so many really great cars that are affordable for so little, it’s going to make it really difficult for me to ever justify a truly expensive car unless I become filthy rich to the point where money loses all meaning.
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Eric @ opposite-lock.com
> shop-teacher
03/06/2018 at 21:06 |
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Perhaps, but many people spend hours on end in their cars. I don’t blame them.
My uncle used to buy new cars because he drove them for hundreds of thousands of miles (over 50k a year) and needed them to be reliable for as long as possible.
wafflesnfalafel
> LJ909
03/06/2018 at 21:19 |
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That is my boss... she’s got a BMW, a Range Rover and a big, new house but hocked up to her eyeballs...
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LJ909
> wafflesnfalafel
03/06/2018 at 21:22 |
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Yep thats why people that appear to have money usually dont.
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shop-teacher
> Eric @ opposite-lock.com
03/06/2018 at 22:31 |
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I prefer to buy new as well. She could have bought a very nice brand new car for much less money. And clearly she should have, because she can’t afford it.
pip bip - choose Corrour
> LJ909
03/07/2018 at 05:09 |
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but girls have to have the latest status symbol