Quote:
Originally Posted by I-Hate-Hulse
I find cars are the single biggest wealth killer amongst my friend group. So many subscribe to the "you are what you drive" theory.
For example - single income family living on his professional 6 figure salary. They have 2 toddler kids and are looking to upsize to a 3 row SUV from a 5 yr old 2 row. They could muddle through with the current vehicle, but are looking at a $60K 3 row. Frankly a $40K new minivan (let alone a used) would address their needs but its not even being considered as they "just can't do it" from an image point of view.
Then there's the flippers. Lease a new car every 3-4 years, not realizing you are paying through the nose eating the depreciation on these high end German cars. But they do this to be able to afford the latest and greatest that supports their image.
To fund all of this of course, means living in the far burbs so that they can get their 2,500sq ft house (complete with the latest Jillian Harris approved designer kitchen with quartz countertops). Which means their yearly km's driven approaches 15-20k km a year meaning they need new cars more often.
It's a vicious cycle with cars and wealth.
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Can they afford it though? If so I don't see the problem. I trade in and get a brand new fully loaded diesel truck about every 11-14 months, and they
make me money, but I still get judged over it with people scoffing at the idea