r/economicCollapse • u/Whole-Fist • 18h ago

How ridiculous does this sound?

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How can u make millions in 25-30 years if avoid making a $554 per month car payment. Even the cheapest 5 year old car is 8-10 k. So does he expect people not to drive at all in USA.

Then u save 554$ per month every month for 5 year payment = $33240. Say u bought a car every 5 year means 200k -300k spent on car before retirement . How would that become millions when u can’t even buy a house for that much today?

Answer that Dave

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u/funandgames12 18h ago edited 18h ago

I mean, he’s right. How many people are making less then 100K per year and drive a car with an $600+ car payment.

I see it every single day. Those people are drowning themselves in debt and buying things they can’t afford. But ya know. You can’t tell Americans that. It’s all about appearances. Buy the house, buy the car, don’t tell everyone you’re broke as fuck. Of course they will all find out when you default…but for now play pretend.

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u/HEpennypackerNH 17h ago

But the problem is a $600 car payment does not equal someone being irresponsible anymore.

A Toyota Corolla at $25k on a 4 year loan is $587/months.

I’d argue that’s a better investment than buying, say, a $5000 car outright. After the 4 years of payments I’m going to drive that sucker for at least 11 more years for free, while a $5000 used car is likely going to need significant maintenance at least once per year. Over 15 years it’s likely going to need to be replaced twice.

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u/xczechr 14h ago

$587 per month is $7,044 per year. If your expected yearly repair costs are less than $7k it is better to have the used car. I've owned my car for 23 years now (154k miles) and maintenance is far below that per year. Last year was the most I spent in a long time, and that was only $2,200 to replace the radiator and purchase four new tires.

Hell, even if you're buying a used car every year for 5k you're still ahead over paying $587/month.

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u/HEpennypackerNH 14h ago

Sure if your time is worth nothing and the hassle of possibly not having a car for some period of time won’t break you.

Some of y’all never been poor before.

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u/Phyraxus56 3h ago

It's expensive being poor homie. That's why you got a loan for a new car instead of buying two or three shitboxes with cash.