> Honestly hard to feel too sorry for people that "need" a $30k+ car/truck/suv.
Your $1600 car was once someone's new car. Without people buying new cars, you wouldn't have used cars to purchase.
Does a server at a restaurant need a new car? That depends on a number of factors including salary and budget. But to say no one needs a new car is bs.
You need someone else to buy a new car so that you can buy a used car.
As the used car market dries up, the price of used cars goes up. This increases the resale value of new cars, which lowers the net cost of buying a new car (because you will get more when you resell it). And the reality is, there's no shortage of used cars in America.
Which is interesting because US automakers pushed planned obsolescence as a way to reduce the used car market to lower the net cost of buying a new car.
That's a relatively new phenomena, quite the opposite was true until about a decade ago.
It started in the 80s.
You were doin' good there until "My primary vehicle is a $1600 motorcycle,". I wont hire anyone who drives a motorcycle --it's something you can get out of your system in your late teens and if you survive you can join the world of responsibility, but as far as grown men riding them around what with the statistics being as they are (not to mention the cost burden to society when they are not fully killed while commuting), it sends a real signal to steer clear.
> 'I wont hire anyone who drives a motorcycle'
> 'it sends a real signal to steer clear.'
I'm sure the feeling is mutual. Or at least I hope that it is.
That's partly how I feel too. I bought a car out of college and took out a loan for it, and my goal with that car was to be able to pay off the loan AND save up enough money that I could buy my next car in cash. I have achieved that goal, but my original car still runs fine after 10 years, and most people are incredibly surprised when I tell them the age and the mileage. I really feel no need to buy a new car, but I am happy to know I am able to buy a car in cash when the time comes.
The difference between 0% (paying cash) or 0.9% (mfr incentive rate) or %3 (preferred rate) isn't that significant on a sub-$50K vehicle over 5-7 years. When the vehicle goes back to the used car lot, there will be a hit taken and you either absorbed it upfront (by paying cash) or will absorb it at the end (by being upside down on the loan) or some combination so that it balances out. As far as driving your next car for 10+ years, the vehicles being manufactured today are almost designed not to last (because the auto industry fell on hard times a while back and vowed never again).
Yup. My "daily driver" (I work from home) is a 1999 Suburban with a 454. It gets absolutely abysmal fuel economy, but for the < 10k miles per year and only $4500 I paid to purchase it six years ago, the math simply doesn't add up to replace it with a new $60k truck or even a $25k sedan.
Heck, I make substantially more money now, and still have a pretty long 45-minute each way commute, with a lot of traffic. My primary vehicle is a $1600 motorcycle, and I _just_ added a truck as a backup (and to tow a track car). Spent $17k on the truck, it's perfectly fine, even looks good. Most I've ever spent on a vehicle by far, and I assume I'll have it for the next decade, at least. I'm driving it 4 hours out into the middle of the desert later today, and I have no worries about reliability.
Bought the truck and every other vehicle I've ever owned in cash. I think that's the big difference between some others and myself. When I could afford only a few grand cash, that's the kind of car I bought.
Honestly hard to feel too sorry for people that "need" a $30k+ car/truck/suv. I think these articles will always ring hollow for anyone that's been in the same situation and opted for a cheap car. Why on earth would you take out that long of a loan on a car that costs you a full year's salary or more?