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We cannot afford car loans not because car loans are expensive, but because we cannot afford anything.
Why not both?
The average American spends $1k a month per car on auto loans, insurance, gas, and other car-related expenses, and the average family has 2.5 cars per household.
Maybe cutting those down or out completely would make people more financially resilient. Of course, businesses should pay people better, too, but decades of studies have shown us that planning our cities in a way that increases car dependency is more expensive and unsustainable for everyone.
Not having a car in a city is feasible. It's much less feasible if you live in a rural or even sub urban location.
Inb4 "just move to the city then!?" Living in a city is typically significantly more expensive than rural or suburban areas. If they're already struggling financially, moving to the city probably isn't the answer.
I'm not saying everyone should move to the city, nor am I saying that we should get rid of all the cars. I'm saying the way we build our cities needs to change. We can't afford not to.
I live in a rural area; we could still have better public transit and less sprawl to help those who shouldn't own a car for financial reasons.
Those numbers seem fishy or out of context, at the least. We have something like 300 million vehicles on the road in the US so there's no way the average car owner is spending $1k a month on loans. I'm assuming that statistic is only for new car buyers which make up a tiny fraction of drivers.
I didn't say it was just on loans, that's closer to $500-700.
On average, drivers are spending over $700 and $500 each month for new and used vehicles, respectively... https://www.bankrate.com/loans/auto-loans/average-monthly-car-payment/
When you then include insurance, gas, oil changes/tires/other maintenance, registration, and driver's licensing, this over $1k.
Car loans kinda stupid. Like, if you can't afford a car now, and the only option for you get it is to finance It, then just get a used Toyota from a private seller.
This is as short sighted as saying purchasing on a credit card is stupid. There's a whole slew of reasons why financing something makes more sense than paying cash. Sure there's plenty of situations where financing is a poor choice, but to make that as a blanket statement is simply incorrect.
Boo-fucken-hoo
The transaction price for new car purchases keeps on going up. All these young people think they deserve some $50k luxury SUV on their near minimum wage barista salary. No one wants to live within their budget.
Just over $48k is the average price of a new car right now. To realistically be able to afford that much car, you should be making well over $130k. Are you making that much money? So why the fuck do you think you can afford a nearly $50k car??
There are plenty of cars that sell for way less than $48k, but everyone these days thinks they deserve luxury thanks to brainwashing by influencers and FOMO.
I think a big part of it is also financial literacy. No eduction on how to manage your finances whatsoever and people make dumb mistakes when paired up with predatory dealers/financing.
Considering millenials are reaching middle age now, I can't help but read this like the boomer "avocado toast" memes when you call us "young people."
You should do some more research on new car buyer demographics. Young people, if buying new, are buying the cheap little econoboxes while every other segment is being purchased by 55-60 year olds. Those are the people buying $50k-$100k vehicles.
You’re assuming these car loans taken out are exclusively for new vehicles - new car purchases have been increasingly the domain of the “rich” who will continue to skew the “average” up and up. Bentley just celebrated the best financial results earlier this year and will do a lot to push up the average even with what Gen Z that can afford new on their own hypothetically buying Mirages and Versas.
Something something Bill Gates walking into a bar and everyone inside becoming a billionaire on average.
And certain job sectors being hit en masse probably doesn’t help those who did buy new but that’s pure speculation on my part.
That's a whole lot of yapping for "I don't want to live within my means". Could have saved you a bunch of typing.
I think that you shouldn't finance a car in the first place. If yoy can't afford new buy maybe a couple years old but a car is think not worth financing. Especially because it loses value so quickly
I agree that you shouldn't finance a car, but unless you've got ten grand saved up you can't afford one, and most people in the US need them to get around due to our shitty public transit.
Public transport is shitty in Belgium too but 10K for a simple car? People who can't afford a new car should imo buy a used shitbox and not fonance something(unless it's some rare car/oldtimer as investment).
Buying used cars is even more eco friendly. Much of the car pollution in the lifetime comes from creating it. Ideally you should use it until it dies on the streets to be eco friendly
Much of the car pollution in the lifetime comes from creating it.
That's simply not true, but I am guessing you will continue to regurgitate it as if it is fact.
this post was submitted on 17 Jul 2023
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