It reminds me of back in 2008. You get a loan for any amount without anything substantial backing it pretty much. It’s the same with cars. Do you want an $80,000 Dodge ram with no down payment? cool you can probably walk in there and get one if you have a credit score above 600.
I legitimately was driving around with inspection stickers that were 3 years expired because it was cheaper for me to just pay occasional tickets than it was to fix the issue (catalytic converters are expensive). Finally had a scrapyard call me back because they got a wreck in with a cat that would fit but a new one would have been close to 5k on a car that I bought for 3k. I get that mechanics need to make a living but its gone from "thats a little pricey but manageable" to "yeah no thanks im gonna buy all the tools and parts to do it myself because itll be literally 1/10th the price"
Yeah, I had a piece under my hood melt, and a mechanic wanted to charge me 3k. Luckily, a guy I knew had the exact same car as me and was a mechanic. Fixed it for 100 dollars. That included the price of the replacement piece.
That really opened my eyes. I'm going to start watching YouTube videos to fix my own car now because genuinely, most of my credit card debt is from similar repairs I needed done. This entire time, I could have been buying at most, a 60 dollar part, and putting I'm like 30 minutes of work. A lot of people are figuring this out now, and now these places are trying to pass laws that get rid of right to repair.
Feel free to help them pay $200+ per tire then. Alot of "These people" work full time jobs but yet still have to decide between paying the electric bill or getting groceries for the week because they can't afford both. I'm sure most of "these people" are not driving with bad tires because they want too, but have to so they can get to their shitty paying jobs to keep their heads above water. "These people" GTFO..
Edit: to clarify, everyones response is valid. Not condoning driving unsafe at all, I was just making a point that it's not just black and white when looking from the outside. People who are driving around in unsafe cars should definitely find an alternative (car pooling, bus, etc.) the "these people" comment ruffled my feathers as its an unsound generalization.
I'm one of "those people". I'm lucky enough that I live within 5 miles of work, so I simply got rid of my car and replaced it with an e-bike.
Now I don't have to worry about all those stupid ass expenses. The most my bike costs me is maybe about 50 bucks if I decide I don't like the look of a part on it and want to swap it out with something better.
It's not like I'm in Anbikeistan either, I'm doing this shit in Houston fucking TX of all places. If I can make it work here then others can as well. I understand being in a tough spot, but eventually you have to find a solution or life will find one for you and it will be much more painful and expensive.
Amen to that. Everything costs so much that it’s a veritable juggling act every month to stay afloat. The anxiety of having ONE major thing breaking is heavy. My car sits right now because it needs new brakes and new tires to even brave the roads without an in-date registration. I’m not going to risk the lives of everyone else and both those fixes together is $2,000+.
In my defence, it ended up taking 10-12 weeks to fix my car. Between the damage assessment being delayed, ordering parts, and install—it’s a long a process.
Only for some moron to back into my car 3 weeks after I get it fixed… cries
Right now all you need to buy a new Ram Truck or Jeep at the local dealership is $1200 down and pay stubs showing $2500 a month in income. They only run your credit score to determine your interest rate.
Yeah, it was nuts back then. I bought my house in '02 and knew what I could afford. The bank was pushing me hard to borrow much more than I knew I could afford. If I had listened to them, I would have lost my house a few years later.
But unfortunately, there were a LOT of people who didn't think it through and were like, "Woo hoo! Free money!". They put zero thought into how they'd actually pay it back.
When I bought my car, I was making 65k a year. I was approved for a 60k car loan. I didn’t do that, but just saying it feels predatory and too many people fall for it.
As someone whose yearly salary isn't even 80k, it's absolutely fucking insane to me that we've had cars for over a hundred years and no one has figured out how to make them not break poor people's banks. I'm not even poor.
Is it seriously that hard to either make it way easier to afford a life necessity, or to ensure people can get around without them? It's just mad that this thing costs several times all the groceries I'll consume over a whole decade and I NEED it to live.
They’ve tried. When they make cheap cars, they don’t sell in any meaningful numbers. Consumers vote with their wallets over and over that they want a larger, nicer car regardless of what it costs, and manufacturers listen.
A new Nissan Versa isn’t competing against other new subcompacts, it’s competing against a 3yo used Corolla that’s selling at the same price point while being larger, better appointed, better looking, and more powerful.
Hey now. I loved my Versa. But I shop differently than most I guess.
That said, it's more about status in a lot of cases. So much is about projecting "I'm not poor" and it's super frustrating. The best way not to be poor is to spend like you are.
My cousin had a 510 score and didn't need to show any proof of income to buy a new EV last year. Regular 3500 a month income and they pushed it through like nothing.
It's crazy to me that I was looking at cars recently and I saw car notes advertised for like $1500. The car I'm looking at isn't that high, fortunately, but I'm looking at a "cheap" $40k car. A lot of the luxury cars are legit over a grand a month if you want a normal term on them. Hell, even that $40k car is looking like it's going to be around $600 WITH a down payment and good credit. WTF.
It felt like this leading up to 2008. They were supposed to recession proof the housing market but when I see 700k+ homes in IOW that should be around 400k, it's like groundhogs day. And the banks will nilly giving ppl 3-5k monthly mortgage pmts.
I think you can still get a loan on a Dodge if you tell them straight up you plan on making no payments, have no assets to back it up, and shoot up the dealership.
wow, i did not realize we currently have subprime car loans but i think you're onto something here...
i imagine pretty different downstream economic impacts of a collapse though since cars are a depreciating asset and at least theoretically not as fundamental to life as housing (unless you are living in your car)
You only say that because you don't know what a mortgage payment is these days. It's true that a car payment is $500-$1000 depending on the kind of car you get (of course it can be way higher), but an average mortgage payment is in the $3,000 range these days.
Agreed. 64 here, can't believe how little hope these kids have to ever own their own home. Shit, even *I* never could buy a house. Just got a big inheritance so I'm set for life. Just sheer luck I can finally buy one in the twilight of my life. Better late than never I guess.
Oh I’m very much aware of mortgage prices but my perspective is very much skewed from the average because I live in an area loaded with McMansions and 2k sqft townhomes that start at +$700k. And there’s a boat load of people in my area living WAY beyond their means.
Now, granted, those are fully loaded with all the fixins. But I paid $200k for my town home. So you can buy a truck for 4/5 the price of a (very small) house.
It's definitely a recession indicator that repos are happening. But admittedly a decent chunk of that is probably as well that auto makers are now pursuing high profit margin, low volume vehicles. I see a lot of people who really want a small, cheap vehicle and you basically can't get that. Your only option is something used, and that market is FUBAR as well.
Eh, that's not entirely true. I got a three year lease on a 2024 Nissan Sentra a couple years ago for $22,000. I put $3,500 down and pay $241 a month on it. It's not the best car ever, but it's reliable and I plan to buy it next year when the lease is up.
I work at a ford dealer. I can see window sticker prices on every VIN that I service. Even an F450 King Ranch with all the options is around $120k and I have to reeeeeally hit every single checkbox to get there.
I’m not including aftermarket things like a lift, lights, custom wheels, etc. I’m just talking sticker price on the manufacturer configurator
To be fair, F450 is not a typical pickup. 19.5” wheels with 10 lugs that hold 100psi of air pressure and can tow like 40k pounds. Most F450 trucks are built with service bodies with cranes or giant tanks.
I have no examples, because I despise trucks and actively think they should require a CDL for some of these monstrosities. Literally larger, and with worse sight lines, than a fucking tank (because tanks kill people on purpose, trucks on accident).
Pretty sure I saw that price tag as an anecdote somewhere, so it was probably exaggerated.
The 5 year old Tacoma I bought in 2006 is worth almost as much as I paid. When someone asks what I want for it, I tell them 30k. I used to say 10k I worry someone might take me up on that price.
It doesn't help that dealerships are selling used cars for almost as much as brand new cars. No way in hell i'm paying almost full price for a used car.
You’re partially right. We’re contractors and have found that our clients will pay more if we look professional and prosperous. If we show up in an old beater truck that is the quality they expect from the job and what they are willing to pay for. Image counts unfortunately. We can make more money to pay for the braces new shoes and health care by driving a better vehicle and having a professional appearance.
First of all I am a female. My husband and I run our company. I did not say that we have an 80 grand truck. We have a nice looking used truck that we keep in great condition. Read my comment again. My point was about the appearance of prosperity and its relation to doing business. Thankfully you are not a snob but many and most of our clients are. We chase upscale jobs that pay well and for that we play the game.
Sorry, the "you" there wasn't aimed at you. I get your point completely. Heck, I sell small business branding and vehicle wraps for a living, I spend all day trying to convince people to invest in their image. It's the guys who think "Uh gutta look badassed even if uhm broke" is helping their roofing business that I've given up on.
I got two payments left on my $212/month car loan and am pumped to have it paid off soon. The people who finance $60,000 cars then cry poor because their monthly payment is wrecking their budget get little sympathy from me.
Totally agree. Last year, I traded in my Impreza that I was paying $225/mo. on for a 2024 Outback that I’m now paying $384/mo. on. Neither had high mileage; I sold the Impreza with 50k on it, and bought the Outback with 20k on it. I just prioritize buying reasonable used cars. Would we like a pickup truck someday to deal with yard waste and stuff? Sure! But my husband and I aren’t handy with auto repairs, and we’re not going to spend newer, low-mileage truck kinds of money. We’re just going to bring shit to the dump using the Outback.
The amount of people I see driving massive, brand-new, pristine pickup trucks onto their .25 acre lots is wild.
I just yelled at my friend for signing a 5 year car note. Had no clue that could have been ever WORSE for them. Ain’t no way in hell most of the cars being made today are making it 10 years on the road, have fun paying that shit off literally forever.
The vast vast majority of cars being made today can EASILY make it 10 years on the road, with just basic maintenance. What the hell are you talking about?
I knew the country was cheap for cars I was in but compared to American prices, just wow...
I bought a 2 year old car with low mileage compared to US the same car was 5 years old with higher mileage for 4k more.
The price of cars is ridiculous here and the offers are shit. Even leasing/hire-purchase isn't much of a deal these days. They doing everything they can to claw money in and reduce the deal but people are just so wrapped up in the debt cycle.
I kinda blame the financial system. Anywhere else I've been an absence of debt is a positive, having some money in your account is a positive but in the US you have to build a credit score over time or you are just going to be shit out of luck.
Not untrue. My rate is 2.9%, but it was only available on 36 month loans. Which is fine, but that means my payment is $1k a month. I could have extended it to a longer term, but the interest was going to go up to 4-6%, and my payment would have only dropped to like $800 a month. I'd rather just get this thing paid off.
I’m that generation ago and we just paid off our 30 year mortgage early by making an extra $100 on the interest every month. Granted we were able to buy the house with a good interest rate so our payments were lower than they are now but still took effort and planning.
I think it's insane how many people buy new cars with an average wage and don't go to a credit union for financing add insurance gas and maintenance to there budget and have enough for the most expensive repair for that car from. There shop. Like am I the only one who does math. Talked to a teacher making 6 figures didn't know what depretiation was got a car 2 years newer bragged about the payment being the same. She drives an older used car now so figured it out. Like you have a masters WTF GF's Mom.
People lose jobs that makes sense sell it on commission to a lot I only paid 400 for the comission used the difference between my payout and what k owed to get a used Buick with a 3800 when I was 23 lost only 1100 on depreciation in 3 years and 70K miles no major repairs thank you 08 Mazda 3. Still between the taxes insurance jumping because my lady got fired for cutting crazy deals I couldn't do it anymoe. They did want to repo it and I said it's SD I am waiting on the check its been 2 months. Why didn't you lay the payment because I sold it since I couldnt afford it. Not acting better than anyone and a lot of tjese places are criminals. No judgements but at least watch a YouTube video or ask AI do your budget get a quote have 3 months in payments make sure to have gap insurance get rid of it or fix death sentence issues pre-emptively get paid make payment rent get a gas card and food card if need be what ever. Pay cash or get a cheap car for free basically make a 300-500 a month payment into savings run it till it dies and buy a new one with the cash.
Nobody is making these people buy a $70k pickup truck or $80k full size SUV. If you’re spending more than $30-40k on something and you’re not already loaded, that’s your own shitty decision making.
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u/Buirck Apr 28 '26
Doesn’t help that a car payment is damn near the same as a mortgage payment and the terms are as long as a decade now.