Spotted on the internal classifieds at work:
Anybody want to bail this guy out of his car so he can "afford" his condo? Only $18,500! Better act fast!I recently bought a condo and after doing my budget realized hitch-hiking will be more financially plausible.Ok, it's not really that bad, but I definitely can't afford this car payment.
Comments
If you must make your grocery-getter look mean, at least get an ARB, which has built-in crumple zones and are crash-tested for airbag compatibility.
It goes with that SUV like a Hummer goes with a McMansion.
Itzallgood!
Now just $16,700!
Sounds like he is getting desperate! Let us know when it hits $12,500. Then I might want his #...
I have never been a huge car guy, as I only view them as depreciating assets(some of you view land and housing this way.) Well a car is guaranteed to go down.
When I recently moved closer into Seattle, I sold our 2001 E430 Mercedes(which I bought at a great price to begin with) for only a couple thousand less than I had paid 2 years earlier.
That large sum of money was far better going to pay down my house, than it was sitting and losing money in my driveway.(I paid cash for the car by the way.)
Now I drive a 12 year old 525 BMW and couldnt be happier. It's paid off, not too expensive to keep up, and decent.
I don't think it's a bad move for someone to drive a less flashy car, or not have a car at all if they can do that. I am 3 blocks away from where I work, my wife is 5 blocks away...and I think it's crazy when people spend huge sums of money for a vehicle.
I learned my lesson with the Benz. The last straw was my 1200.00 in maintenance, and projected 1800.00 for the next year. IN MAINTENANCE.
Just curious here, but I'm sure that most people at work know about your blog by now. Don't they get a little pissed at you for basically making light of their situation? I remember not too far back you were talking about a conversation you overheard in your break room. There must be a lot of people at your office who have no idea who you are...but still. Don't you get worried that someone from work will see you posting about them?
But what if they're driving in the middle of the desert and a kangaroo jumps out in front of them? I mean, it's not likely, but better to be prepared just in case, no?
Back on topic: Unlike last year, it is now difficult to refinance and roll your 5-year auto loan into a 30 year mortgage or HELOC courtesy of "instant equity". Pre-credit crunch this guy would have not only rolled in the SUV but probably picked up a boat along with it.
Ah yes, the "30 year car loan" as it was known during that brief period of time when it was in vogue.
Seriously, dealers for Audi, 3-series BMW, and GMC Tahoe must be sweating the next several quarters, due to the sudden contraction of credit availability for young wage-slaves. The HELOC "income" stream must have been nice for them while it lasted.
Please point out to me anyone who has suggested that land is a depreciating asset. As far as I can tell, land is the only part of real estate which is generally not a depreciating asset. Here's why housing is. Expect 1%-2% annual maintenance, stir in annual appreciation of 4.5%, and then remove annual inflation of 4%. Housing in general depreciates about .5%-1% annually, even though the land is probably appreciating in value.
But in general, cars depreciate much more quickly. That we can all agree on.