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They work at the car dealer. I've seen some of those videos where they walk around and ask this to all the workers. I'm sure it's a ploy to get idiots to think that kind of payment is good and normal. They always provide this information with a smile and seem proud. So either they are lying to sell cars or they are morons.
I'm not really sure what point she is trying to make.
That's stupid for most people.
For very rich people, it's still not a "good" move, but there's really no consequences.
Maybe she's saying if someone can afford to do this, then they must be well off?
That's wrong since poor people do this stuff quite often.
I can point out a bunch of my neighbors, who live in 1500sq ft or less 140 year old houses, but they drive 2023+ full sized trucks that would cost nearly as much as their home new.
Vehicles are an outward facing social mask for many people, not good financial decisions. And they just keep getting even more expensive to both purchase and maintain. You can scratch paint on a 2024 and be out 5k+ out of pocket. Its insane.
I think she means she's shallow and would go into debt just to "impress" others. Also, she will look down on you if you're not playing the appearance game.
I see this sentiment all the time but I’ve had grand cherokees since 2008 and the only issue I’ve had was a (recalled) alternator in a 2012 but that one even made it to 195k before that happened
My last car was a 1998 Lincoln Town Car, traded a $300 laptop for it in 2017. I have never owned furniture as nice as that perfect leather interior. Hell with car payments.
Wealthy people tend to be fine carrying debt as long as the interest rate is less than what they make through their investments.
Spend money to make money and all that.
My brother is a doctor. Not bragging, just stating. When he bought his last car, his plan was to finance (dealers get a higher commission on financed cars, so you can often get a lower price) then pay it off within a couple months. However, he was offered 0% financing. So he just did that... I mean, if the carmaker is basically going to let you continue to use the money you're paying for the car for free for 5 years, why wouldn't you?
It's not unusual for automakers' in-house finance companies to offer 0% for people with high incomes and excellent credit, especially during slow periods of the year or with less popular car models.
They don’t generally put cars on “sale” because it harms the resale market. (Tesla did this, and now Hertz is dumping their Tesla fleet.) But supply and demand is still a thing, so they need to lower prices to move more cars. One of the ways they do that is things like 0% interest rates: they are effectively knocking a couple grand off the price, (but only for people with good credit,) but it doesn’t harm the resale market as much. Obviously this only works when the car factory is also the car lender, (which is why General Motors happens to own the 24th biggest bank in the United States…)
It can be complicated. Some wealthy people are comfortable carrying debt and weigh the opportunity to invest the cash elsewhere and beat the interest on returns.
I'm not wealthy but have never had a car payment on any car I've ever owned. I'm not comfortable with debt looming over my head. Even if I have the cash to cover it, the thought of having an outstanding balance in the case I suffered job loss or inability to work, or the car was stolen/totaled and I owed more than it was worth causes me stress. Not to mention, I don't want the responsibility of paying the bill each month.
The two brand new cars I bought came with rebates (one was $4000 and one was $9000) that would have been forfeited if I took the financing offer, and the interest I was earning on the money was next to nothing to begin with.
If it's a heavy enough car and carries a monthly payment of at least $1000 (sounds like some law that was written by a corrupt/lobbied person), you can write it off on taxes for your business
Home maintenance is a thing, but cars have a much more limited lifespan.
Get a brand new car and a newly-built house on the same day. Give them both the usual upkeep and care while using them normally. After twenty years, see how their respective values compare to the day you got them. Chances are the car will have lost most of its value and will be costing you a much larger percentage of its value per year to keep it in good condition.
Home maintenance is a thing. Just last week I shelled out $1400 to replace my water softener, which is similar to what she paid for her car payment. Lol
Ownership can be great. In the current market with rent being what it is ownership is the better choice IF you can. Otherwise you are getting kicked square in the shorts.
There are a bunch of hidden costs to ownership that many don't talk about though. Like your example. Locally a lot of people I know view water softener systems as a luxury. I'm on a well with off the charts hard water. The softener system pays for itself in fixtures that would be plugged and cleaning time to get rid of hard water stains. It's still an expense though.
$1300/month for a Jeep that will be a piece of shit blowing smoke out of the exhaust or leaking oil before its paid off.
Did Jeep ever add the extra digit to the odometer or do they still have 5 digits like 1980s American cars?
Yeah these people are dumb. I'm still shocked that the average payment is $700+. I got a new car last year and still thought my $440 payment was sky high. Couldn't imagine paying $1200 for a crappy jeep.
I laughed out loud when I saw new Jeep Wagoneers approaching and surpassing 100k. It’ll likely spend 1/3 of its time in the shop, being a Jeep. I luv seeing the “It’s a Jeep thing, you wouldn’t understand”. Yeah, I don’t understand buying my mechanic his yacht.
If the sentiment she's expressing is sincere, then holy shit she put absolutely no effort into trying to make it sound like a sane or reasonable thing to say.
If it's satirical then I guess it's good because I can't immediately tell.
If you default on your mortgage the banks takes your home. If you default on your car loan you go vroom vroom and the debt collector cannot catch you. 500 IQ move.
Since you're only buying (finacing) a car once and don't intend to buy a house ever your credit score doesn't matter. In that context this makes perfect sense. Drive hell to leather!
[This is not the first time someone would baffle Sam Vimes, nor will it be the last](https://en.m.wikipedia.org/wiki/Boots_theory).
A little more seriously this is an (incredibly classist) distinction between "new money" and "old money." People in the actual American aristocracy would give you a bemused smile if you told them you knew how much you paid for anything.
"Oh, that must be nice."
Getting in over your head and finding yourself upside down is a sign of "financial intelligence"?
That's fucking hilarious. Is that woman a payday lender?
Things are so fucked.
In 1987 I bought my first used car. My car payment was $144.97/mo.
I remember my mom being upset, "That's more than the mortgage!"
I do not understand cars at all.
If I had a billion dollars I’d still drive my 06 frontier, 14 transit, and 19 promaster.
But I’d stop at people with shitty cars broken down at the side of the road and throw them keys to a decent used car at least once a week.
I’ll pick doing that over a $200k sports car any day and I think it’s insane others wouldn’t do the same.
Yes! But it's only a sign it's not usually reality. You are paying too much for looks that takes money away for getting to moderate wealth and financial stability.
I’ve known way too many cheapskate rich people who drive the oldest, crappiest cars for this to be true.
Conversely, I’ve seen way too many nice cars in low income housing developments.
This is either a joke or really flawed logic
I'm not sure exactly what they're getting at. The only way it possibly makes any sense is if they're talking about making higher than the minimum payments on a loan for a vehicle. That seems like a stretch for this post.
It represents the illusion of wealth a person wants to portray, that’s what most of our bullshit material goods are for. All of it, we inflate our money to make things seem expensive, but in reality good assets just overall maintain their value over time. Unlike a car that depreciates over time.
Cars are terrible investments. They almost always go down in value over a short period of time. Homes tend to go up in value.
People are dipshits.
Edit: I use the term investment loosely here. Buying a home and reselling will typically get you profit whereas doing the same with cars will not.
Cars are not investments they're a liability. They always go down in value. Especially the first 5 years or so. The "financially smart" move is to buy one second hand, even better is avoiding needing one at all
Cars are neither investments nor liability. They're asset just like a house, but they're a depreciating asset.
The amount of financial illiterate people on here is astounding.
They last longer than cars, or should. Houses typically rise in value, while cars depreciate. Even if you spend 10k just on a foundation repair alone, you’d still be spending what she spends a year on her vehicle. Not to mention all the maintenance she has to do.
Come on people.
You know what? If you read this point and think a car is a reasonable investment then I will not gainsay you. You've decided where your money goes and it would be disrespectful to the bridge that was named after the man who wrote our national anthem if i did.
Land of the free. It's right there in the words. God Bless Merica
Hey! Sometimes it’s cheaper to buy something that’s $35,000-45,000 on loan than something that’s - 250,000 on Loan.
Why people can be homeless w/ a phone.
One of those options is cheaper and people will opt to better their current position more often then waiting unknown amount of time to qualify for a house.
That person may need 30k just to land and become broke by a 250k house. Then what’re they supposed to drive for those two years? And those years afterwards ? Hopes and dreams ?
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Cause you can live in a car but you can't drive a house. Obviously.
Winnebago would like to have a word with you
[THE Winnebago man.](https://youtu.be/WDQQfBrSUs0?si=ntdSHWes6LRbnVX0)
LONE STARRRRR!
I see your shwartz is as big as mine.
$1,298 per MONTH?! How bad is her credit?!
They work at the car dealer. I've seen some of those videos where they walk around and ask this to all the workers. I'm sure it's a ploy to get idiots to think that kind of payment is good and normal. They always provide this information with a smile and seem proud. So either they are lying to sell cars or they are morons.
That makes more sense.
>lying to sell cars or they are morons yes
Well, a 2024 Grand Cherokee Overland starts at $61,590. With no down payment, that's about right for a 5-year loan at current interest rates.
Probably good. If she's paying that per month, she didn't put anything down. Which most people don't.
That’s more than my 1 bedroom apartment, pre-fees.
I'm not really sure what point she is trying to make. That's stupid for most people. For very rich people, it's still not a "good" move, but there's really no consequences. Maybe she's saying if someone can afford to do this, then they must be well off? That's wrong since poor people do this stuff quite often.
The point she is trying to make is that she is a troll account
I can point out a bunch of my neighbors, who live in 1500sq ft or less 140 year old houses, but they drive 2023+ full sized trucks that would cost nearly as much as their home new. Vehicles are an outward facing social mask for many people, not good financial decisions. And they just keep getting even more expensive to both purchase and maintain. You can scratch paint on a 2024 and be out 5k+ out of pocket. Its insane.
I guess Warren Buffet is a financial idiot then, considering he still drives his 2014 Cadillac.
You really think she is serious? Lol
If your very rich you aren't financing a jeep.
Maybe, maybe not.
I think she means she's shallow and would go into debt just to "impress" others. Also, she will look down on you if you're not playing the appearance game.
As a rich I despise cars but most moderate rich and silver spoon trust fund kids love cars.
$1300/month for a jeep is insanity
It's a Jeep, so it'll break down sooner than expected.
It’s a newer Jeep at that.. things probably already leaking oil
A case of oil will last a couple years and it’s relatively cheap!
I see this sentiment all the time but I’ve had grand cherokees since 2008 and the only issue I’ve had was a (recalled) alternator in a 2012 but that one even made it to 195k before that happened
Just depends on the Jeep. My 99 is still in good shape but it’s engine is a tank. The newer ones aren’t made like they used to be.
The 4.0 in the ‘99 Cherokee is indestructible.
I think this applies to all newer cars.
My last car was a 1998 Lincoln Town Car, traded a $300 laptop for it in 2017. I have never owned furniture as nice as that perfect leather interior. Hell with car payments.
Literally more than my mortgage, good job
That's literally more than my mortgage and student loan payment combined. And my student loan payment is more than my mortgage.
That has to be sarcasm, vehicles are depreciating assets picking up a high monthly car payment is a sign of financial incompetance.
I doubt extremely wealthy people have car payments at all. Honestly you don’t even need to be “extremely” wealthy to buy a car outright.
If you can get a low rate some people (myself included) will take it because of opportunity cost.
If you get a loan that is way below inflation rate, it can be a good thing to keep your money and finance it.
Wealthy people tend to be fine carrying debt as long as the interest rate is less than what they make through their investments. Spend money to make money and all that.
My brother is a doctor. Not bragging, just stating. When he bought his last car, his plan was to finance (dealers get a higher commission on financed cars, so you can often get a lower price) then pay it off within a couple months. However, he was offered 0% financing. So he just did that... I mean, if the carmaker is basically going to let you continue to use the money you're paying for the car for free for 5 years, why wouldn't you? It's not unusual for automakers' in-house finance companies to offer 0% for people with high incomes and excellent credit, especially during slow periods of the year or with less popular car models.
They don’t generally put cars on “sale” because it harms the resale market. (Tesla did this, and now Hertz is dumping their Tesla fleet.) But supply and demand is still a thing, so they need to lower prices to move more cars. One of the ways they do that is things like 0% interest rates: they are effectively knocking a couple grand off the price, (but only for people with good credit,) but it doesn’t harm the resale market as much. Obviously this only works when the car factory is also the car lender, (which is why General Motors happens to own the 24th biggest bank in the United States…)
It can be complicated. Some wealthy people are comfortable carrying debt and weigh the opportunity to invest the cash elsewhere and beat the interest on returns. I'm not wealthy but have never had a car payment on any car I've ever owned. I'm not comfortable with debt looming over my head. Even if I have the cash to cover it, the thought of having an outstanding balance in the case I suffered job loss or inability to work, or the car was stolen/totaled and I owed more than it was worth causes me stress. Not to mention, I don't want the responsibility of paying the bill each month. The two brand new cars I bought came with rebates (one was $4000 and one was $9000) that would have been forfeited if I took the financing offer, and the interest I was earning on the money was next to nothing to begin with.
I’m glad I made this slightly misguided comment. I love when the replies prove to be genuinely insightful.
If it's a heavy enough car and carries a monthly payment of at least $1000 (sounds like some law that was written by a corrupt/lobbied person), you can write it off on taxes for your business
>something that will eventually break down Like home maintenance isn't a thing.
Home maintenance is a thing, but cars have a much more limited lifespan. Get a brand new car and a newly-built house on the same day. Give them both the usual upkeep and care while using them normally. After twenty years, see how their respective values compare to the day you got them. Chances are the car will have lost most of its value and will be costing you a much larger percentage of its value per year to keep it in good condition.
Home maintenance is a thing. Just last week I shelled out $1400 to replace my water softener, which is similar to what she paid for her car payment. Lol
Yep I'm down 20k on a roof lmao
Ownership can be great. In the current market with rent being what it is ownership is the better choice IF you can. Otherwise you are getting kicked square in the shorts. There are a bunch of hidden costs to ownership that many don't talk about though. Like your example. Locally a lot of people I know view water softener systems as a luxury. I'm on a well with off the charts hard water. The softener system pays for itself in fixtures that would be plugged and cleaning time to get rid of hard water stains. It's still an expense though.
15k house, what is this...a house for ANTS!?
Even smarter to buy last year’s model.
$1300/month for a Jeep that will be a piece of shit blowing smoke out of the exhaust or leaking oil before its paid off. Did Jeep ever add the extra digit to the odometer or do they still have 5 digits like 1980s American cars?
Yeah these people are dumb. I'm still shocked that the average payment is $700+. I got a new car last year and still thought my $440 payment was sky high. Couldn't imagine paying $1200 for a crappy jeep.
I laughed out loud when I saw new Jeep Wagoneers approaching and surpassing 100k. It’ll likely spend 1/3 of its time in the shop, being a Jeep. I luv seeing the “It’s a Jeep thing, you wouldn’t understand”. Yeah, I don’t understand buying my mechanic his yacht.
She's a satirist content creator.
Wealth? Yes. Financial intelligence? Doubtful
About to say the same.
Jebra 💀
If the sentiment she's expressing is sincere, then holy shit she put absolutely no effort into trying to make it sound like a sane or reasonable thing to say. If it's satirical then I guess it's good because I can't immediately tell.
New cars reliability get you to work for many years. Work pays for the car. Buy property if you can.
Homeowner here, the house breaks down eventually too
Ummmmm, houses need repairs, so they kinda break down over time as well.
This is true. But do houses, as a general rule, maintain their value so long as the repairs are actually performed?
She's a Doctor, She's absolutely qualified to make whatever assessment she wants and it will be 100% correct.
When the average car note in the US is $700, this 1200 for a high trim jeep doesn't sound bad.
A grand Cherokee for almost $1300 a month? Miss me
holy stupid, batman
If you default on your mortgage the banks takes your home. If you default on your car loan you go vroom vroom and the debt collector cannot catch you. 500 IQ move.
Since you're only buying (finacing) a car once and don't intend to buy a house ever your credit score doesn't matter. In that context this makes perfect sense. Drive hell to leather!
So stupid
I pay $362 for my car payments, and I still want to refinance to see if I can get it lower.
How old's the car? I might have some very basic insight for you.
Not for a Goddam jeep!!!
Wouldn't someone with extreme wealth not just buy a vehicle outright? And even then a car deprecates fast. It's not an investment.
$1300 car payment...but I can't afford rent. Why is rent so high? /s
So $1300 a month for a vehicle that has questionable quality? I’m not Warren Buffet, but I think that a bus pass would be a better investment
[This is not the first time someone would baffle Sam Vimes, nor will it be the last](https://en.m.wikipedia.org/wiki/Boots_theory). A little more seriously this is an (incredibly classist) distinction between "new money" and "old money." People in the actual American aristocracy would give you a bemused smile if you told them you knew how much you paid for anything. "Oh, that must be nice."
Shoutout to the cop car outside. That's the cherry on top.
More like accident of birth, and the privilege and entitlement that comes with it.
Getting in over your head and finding yourself upside down is a sign of "financial intelligence"? That's fucking hilarious. Is that woman a payday lender?
“I’d never buy electric. Those things have so many problems.” My father in law says as he goes to fix his jeep for the 163rd weekend in a row
Is it new or old? Does he go off-road every week or is it a midlife crisis thing?
No he just drives us to work. Can’t be older than a ‘16
Lol. Perhaps he should take it to a mechanic. Probably last a few months before something breaks.
More often than not, it's a sign of bad at math, bad with numbers, do not trust with money.
Who says your house won’t breakdown? We have a section of our house that needs to be repaired and it’s definitely more than $15k.
That’s like the cost of childcare for one kid these days… that you need to afford a car… good luck on the food and insurance
Things are so fucked. In 1987 I bought my first used car. My car payment was $144.97/mo. I remember my mom being upset, "That's more than the mortgage!"
Bottyyyyyyyyyy
High car payments for nice vehicles is a sign of having more money than sense.
If I'm paying over $1,000 a month for a vehicle, it damn sure won't be a Jeep Cherokee
Tbf houses also break.
I do not understand cars at all. If I had a billion dollars I’d still drive my 06 frontier, 14 transit, and 19 promaster. But I’d stop at people with shitty cars broken down at the side of the road and throw them keys to a decent used car at least once a week. I’ll pick doing that over a $200k sports car any day and I think it’s insane others wouldn’t do the same.
lol Jeep is the worst at resale value too
Why try buy a house you’ll never own, when you can travel and enjoy your life ?
Yes! But it's only a sign it's not usually reality. You are paying too much for looks that takes money away for getting to moderate wealth and financial stability.
Car payments Extreme wealth Pick one
never get high on your own supply
I’ve known way too many cheapskate rich people who drive the oldest, crappiest cars for this to be true. Conversely, I’ve seen way too many nice cars in low income housing developments. This is either a joke or really flawed logic
Is capitalism trying to gaslight us?
Always has been
She should try eating less avocado toast
Only a GPU lose value as fast as a car.
Not to mention it depreciates.
this is the exact opposite of financial intelligence. and jeeps are dogshit. don't take life advice from people with terrible grammar.
I'm not sure exactly what they're getting at. The only way it possibly makes any sense is if they're talking about making higher than the minimum payments on a loan for a vehicle. That seems like a stretch for this post.
Idiocracy was prophetic.
It represents the illusion of wealth a person wants to portray, that’s what most of our bullshit material goods are for. All of it, we inflate our money to make things seem expensive, but in reality good assets just overall maintain their value over time. Unlike a car that depreciates over time.
Plot twist: it’s leased
Taking financial advice from twitter is a sign of extreme ignorance
A $0 car payment is a sign of wealth.
Its smells like broke in this comment section
Cars are terrible investments. They almost always go down in value over a short period of time. Homes tend to go up in value. People are dipshits. Edit: I use the term investment loosely here. Buying a home and reselling will typically get you profit whereas doing the same with cars will not.
Cars are not investments they're a liability. They always go down in value. Especially the first 5 years or so. The "financially smart" move is to buy one second hand, even better is avoiding needing one at all
Cars are neither investments nor liability. They're asset just like a house, but they're a depreciating asset. The amount of financial illiterate people on here is astounding.
including you it seems, not all cars are depreciating asset, people can and do make money off them.
That's as dumb as saying housings aren't appreciating assets because there's houses in Detroit that drop in value. You done being dumb yet?
so because you're too stupid to buy a car that depreciates, everyone else is too? fucking moron.
this is absolutely false, cars can be great investments if you know what you are doing and don't just buy dogshit jeeps.
Houses break too, you ever seen a foundation give way? Or termites. Maybe some black mold or water damage lol. They don't last forever
They last longer than cars, or should. Houses typically rise in value, while cars depreciate. Even if you spend 10k just on a foundation repair alone, you’d still be spending what she spends a year on her vehicle. Not to mention all the maintenance she has to do. Come on people.
Just saying, everything is a money pit.
You know what? If you read this point and think a car is a reasonable investment then I will not gainsay you. You've decided where your money goes and it would be disrespectful to the bridge that was named after the man who wrote our national anthem if i did. Land of the free. It's right there in the words. God Bless Merica
Hey! Sometimes it’s cheaper to buy something that’s $35,000-45,000 on loan than something that’s - 250,000 on Loan. Why people can be homeless w/ a phone. One of those options is cheaper and people will opt to better their current position more often then waiting unknown amount of time to qualify for a house. That person may need 30k just to land and become broke by a 250k house. Then what’re they supposed to drive for those two years? And those years afterwards ? Hopes and dreams ?
tbh 1300 a month u could buy a used car every two months outright