How can you afford the cost of a new SUV?

[Doubeleive]

But there is a lot of money out there. I mean a lot. It's just not in my hands or in that of most Americans. Local Caddy dealers haven't had a new Esky on the lot for years. All are presold before they arrive at the dealer.....

i'm sure there is...
however the OP was questioning whether or not if they could really afford a new vehicle, based on NOT having a LOT of money
I have 4 GM vehicles (all used) 3 full size suv's and 1 full size pickup. a 2018, 2016, 2012, 2005
the price that I paid for all 4 combined "almost" equal's the cost of 1 new one off the lot
if I had bought all 4 of those new my net loss would be over $100k already, as it stands now it's somewhere around $30k
that's $70k I didn't have to throw out the window

 

[fozzi58]

I really have no idea how people are doing it. I LOVE the Esky V but there's no way I could justify (let alone afford) spending $150k on a new whatever.

My wife and I do pretty well for ourselves (not as well as @Geotrash !!!) but its getting more difficult to maintain current lifestyle, let alone save, with 1 in college and another a year away. NJ isn't the cheapest place to live but the salaries are usually decent enough.

I'll keep my $50k (at the time) 17 Burb LS, base model, no options, and keep adding to it and/or upgrading it. It will be "new to me" for however long I can keep it.

 

[dukbludvl]

Hi everyone,

Apologies for the sort of asinine question. It's on my mind and this might be more of a way to convince myself to pull the trigger.

I'm looking at an almost brand new Tahoe for my wife and I'm having a hard time pulling the trigger. Outside of it not having captain's chairs (just posted a question regarding that), something else is knawing at me. I've never spent more than $40,000 on a car, and that was for a sports car before I was married and had kids. I know hyper inflation has caused a good bit of the cost, but some of these SUVs are costing 6 figures and I can't pull the trigger for something that costs as much as some people's houses. I make a good wage and I'm well in the middle class area of my income (around 120k). My wife works as well, but it's a negligible amount since it's only once a week typically. I don't want to go into our finances and I suppose I'm getting distracted from the question at this point...

We can 100% afford the car. Sure we'll have to cut down on some other luxuries but I suppose the question is, should we? With the exception of things like old project cars, cars lose their value and it's a quick slope to worthless. I live in a city where morons rule the streets. My car has been hit 4 times and has gone from perfect and superb where I took it to car shows to now, I don't care about it, it gets me from A to B. So I'm asking is spending around $80,000 for a car I know is only going to depreciate over time worth the sticker price.

I don't want to buy used past '21 mostly because I want the 3.0L for economic and maintenance purposes. Plus the used market is insane right now and seems like buying new is a better idea.

I’m with B-train. We haven’t had a car payment in 20 years. My wife and I combined make roughly a half mil a year, and we drive:

2007 Accord (wife’s daily driver)
2012 Tahoe (travel vehicle)
2003 Yukon (my daily)
2002 Yukon (backup daily)

All our vehicles have roughly 250k miles on them (except the 2002 Yukon at 175k), were bought used for 5-10k, and are great mechanically and decent cosmetically. The wife is due for a replacement (not new) car soon.

We’ll probably never buy new again even though we can easily afford to. I actually prefer driving the 00-06 Yukons/Hoes. Way more comfortable and fun to drive.

I’m not telling you what to do, but if you’re making 120k a year or thereabouts, I’d argue you can’t really afford an 80k or 100k vehicle. Even if you CAN pay for it, you shouldn’t because you’re just throwing money away on something that’ll decline rapidly in value and will be worth nearly nothing in 10 years.

Nowadays, car loans are years longer than theyve ever been (7 or 8 years, crazy), and car payments are on oar with house payments. Insane, and not financially smart.

For the average middle class family, buying these vehicles new is a wealth destroyer.

 

[GBF1]

Hi everyone,

Apologies for the sort of asinine question. It's on my mind and this might be more of a way to convince myself to pull the trigger.

I'm looking at an almost brand new Tahoe for my wife and I'm having a hard time pulling the trigger. Outside of it not having captain's chairs (just posted a question regarding that), something else is knawing at me. I've never spent more than $40,000 on a car, and that was for a sports car before I was married and had kids. I know hyper inflation has caused a good bit of the cost, but some of these SUVs are costing 6 figures and I can't pull the trigger for something that costs as much as some people's houses. I make a good wage and I'm well in the middle class area of my income (around 120k). My wife works as well, but it's a negligible amount since it's only once a week typically. I don't want to go into our finances and I suppose I'm getting distracted from the question at this point...

We can 100% afford the car. Sure we'll have to cut down on some other luxuries but I suppose the question is, should we? With the exception of things like old project cars, cars lose their value and it's a quick slope to worthless. I live in a city where morons rule the streets. My car has been hit 4 times and has gone from perfect and superb where I took it to car shows to now, I don't care about it, it gets me from A to B. So I'm asking is spending around $80,000 for a car I know is only going to depreciate over time worth the sticker price.

I don't want to buy used past '21 mostly because I want the 3.0L for economic and maintenance purposes. Plus the used market is insane right now and seems like buying new is a better idea.

Your question makes a lot of sense. Our `06 Yukon Denali has 193K miles on it. It`s been mostly trouble free but we are looking at some big repairs ahead, and looking at late model used GM SUV`s. This would be my 4th. We are fortunate financially but I still am incredulous at the pricing on these rigs. My advice is only buy what you feel comfortable making payments on. You will end up with a nice ride any way, and feel better about it in the long run.

 

[B-train]

I'd like to thank all who have added their input. It's cool to see other successful people be miserly and realistic. Realistic talks about money, life, problems, etc is a benefit to all who read or participate. Keeping things hidden, or manipulation of facts, to get the 'right' outcome is never good in the long run.

Great question and thread!!

 

[DuraYuk]

Another thing to keep in mind is rate of inflation:

$50,000 in 2013 → 2023 | Inflation Calculator

The 2.82% inflation rate means $50,000 in 2013 is equivalent to $66,036.01 today. This inflation calculator uses the official US consumer price index published by the Department of Labor.

www.in2013dollars.com

 

[vcode]

i'm sure there is...
however the OP was questioning whether or not if they could really afford a new vehicle, based on NOT having a LOT of money
I have 4 GM vehicles (all used) 3 full size suv's and 1 full size pickup. a 2018, 2016, 2012, 2005
the price that I paid for all 4 combined "almost" equal's the cost of 1 new one off the lot
if I had bought all 4 of those new my net loss would be over $100k already, as it stands now it's somewhere around $30k
that's $70k I didn't have to throw out the window

Just a response to your buying a new car is like throwing money out the window...... I agree. But I'm just saying there is a lot of money out there and those people are happy to spend $100K on a new truck. Many pay over MSRP and that is driving the price up for used ones as demand is great. I still drive a 2010 Tahoe and my wife has a 2011 Malibu. I would drive my Tahoe another 10 years but rust issues are starting to appear, thanks to salty Wisconsin winters.... :-(

 

[AlexMahon]

By way of example only, last year I sold my 2001 Ford F250 Platinum Edition (Lariat) 7.3L diesel after owning it for 17 years, which I bought in Houston, TX with 114K miles on it. I bought it for $21K and sold it for $18K (267K miles). Yes, I had spent a bit keeping it up, but I could and did take it all over the U.S., putting 150+K miles on it. In its place I bought a 2008 Yukon 1500XL SLT 6.0L with 142K for $12K. Since then I have put about $9K into it (new shocks, new AirRide compressor, new battery, auxilliary battery, window tint, headlights, a bit of chrome, internal and external detail, refreshed the paint, tie rods, auxilliary trans cooler, sheepskin seat covers, plugs, wires, coils, all mechanical fluids, belts, and hoses. Other than its obvious year series, it looks and runs like new. It had been used in Arizona only - no rust/perfect undercarriage. I plan and anticipate that I will keep it for no less than 10 years, probably 15. Lots of great CA, AZ, NM, and TX SUVs with no rust and low mileage available. There's one on the market in Tucson now - a 2007 XL SLT with all the options, 102K, for $14K. And a 2015 Denali with 75K for $29K. Check out Craigslist for Tucson, Phoenix, El Paso, Albuquerque, etc. For a $200 plane ticket, a $250 independent inspection, and a weekend on the road you could have a great Yukon, Suburban, etc., for less than 20K.

 

[BrentS]

2016 Yukon Denali. Dropped $3500 into suspension recently. Looked at new and newer used, trade-in also, but it makes no sense to make a change with how expensive these have become. Haven’t had a car payment in years and can’t go back to one unless can pay off quickly. I too can’t figure up who is paying $100k for a new one to replace what we have. Cheaper to fix current Yukon.

 

[DuraYuk]

Just a response to your buying a new car is like throwing money out the window...... I agree. But I'm just saying there is a lot of money out there and those people are happy to spend $100K on a new truck. Many pay over MSRP and that is driving the price up for used ones as demand is great. I still drive a 2010 Tahoe and my wife has a 2011 Malibu. I would drive my Tahoe another 10 years but rust issues are starting to appear, thanks to salty Wisconsin winters.... :-(

Past few years if you bought right you could make money/drive your car for free (no depreciation even when trading)

Many people have no idea when buying and get hosed with markups and fees.

For me and my family we travel a lot and spend a lot of time in our family vehicle so we want safety and options. Many could care less. It's all about the individual and their needs/wants.

I'm thinking of ordering a new z06. Why? Cuz I want one built to my spec. Sure I could put 130k into a single family home and rent it and make some residual income (already do that) but where's the enjoyment? Lol