BEAR-AvHistory

So $160K income for a TLX & $550K income for a S 560 4MATIC

I don't think so. The average price of a new car in the US is about $34K. At the 4X rate of $136K in income there would be no auto industry to have magazines & web sites for.

Majofo

Being prudent is not the American way bear.
Mike is absolutely right, but like OP, most people want to live for now.
That's why the average American has nearly 20k in credit card debt, 30k in car loans, and 50k in student loans.

Majofo

Throw in mortgages and misc debt.. no wonder nearly 70% of Americans have less than $1k in savings.

Flipster23

iTrader: (15)

Stack dem dividends.


Buy 1991 Camry
Don't go to school
Don't buy house, live with parents..... inherent parents house.

BEAR-AvHistory

The housing crash proved that point, lesson was not learned.

I said quick & dirty. Think my numbers hold up at to what is, not what a prudent person might think it should be. Think I remember reading the median income for luxury car was around $100K. That's half over & half under $100K in income to buy a luxury brand.

The list included all the usual suspects + Acura & Infiniti. I would expect the half that are under $100K are buying things like the entry C class, 320/330, A3/4 etc.

The median household income in the US was $56,516 in 2015, That number will price over half of all families in the entire country out of anything other than a city bus for transportation at 4X salary to MSRP. Be interesting to see the 3/4-1/4 level income number is.

fiatlux

If I were making $56K a year, you can bet that I wouldn't be buying a new car. Used Camry or Accord for $10K would be a much more reasonable purchase, and it's what they should be doing. Just because most people don't go down that route doesn't mean it's not the financially correct route.

fiatlux

At least with a mortgage, the amount you pay (minus the interest) accrues directly to you (and the interest is tax-deductible). Of course, that assumes the house you bought is one that you can actually afford and you don't get the house foreclosed (which is probably too tall of an order for most people who overestimate how much they can actually afford).

But I agree, overspending on a depreciating asset like a car is why these people don't have more money. You don't get rich by sandbagging your finances when you're young by carrying debt on depreciating assets.

Flipster23

iTrader: (15)

Tell that too the people buying houses in California right now. I see a market crash coming again. People spending 650k+ on box shaped homes that all look the same.

fiatlux

People have been predicting a housing crash for years now. Honestly, I don't think it's a big deal, which is why I bought in California (in San Francisco no less). Eventually a crash will happen, but because it's a cyclical market it'll eventually go back up, and as long as you don't need to liquidate your house it really doesn't matter too much in the long run. From a microeconomic standpoint, of course you want to buy-low and sell-high, but if you consider the macroeconomic situation, if you sell-high you'll also buy-high for the next cycle. Conversely, if you buy-high and sell-low, you'd also buy-low for the next cycle. As long as you don't go underwater (which again harkens back to being able to "really" afford what you buy), then in the long run the cyclical nature of the market is a non-factor.

Flipster23

iTrader: (15)

I bought low, sold high, bought low again and now I'm staying where I'm at.

Damn SF living, I give you props on that.

Anyway, don't want to thread jack.

OP, when you going to buy that Aspec?

BEAR-AvHistory

Once again, its not what someones opinion is of whats right or wrong its an expression of what is. If everyone adhered to whats "right" about buying a car the country would be in an economic depression that would make 1929 look like loosing your lunch money.

In 2016 17.5 million cars were sold in the US. Cut that number by say 30% to get more in line with prudent car buying based on income. Most US based car manufacturing would cease because the companies could not afford to keep the factories open. Auto workers would be left go, the support industries would collapse & their workers let go.

Fully 50% of the Dow Jones industrial derive income from the auto industry.

Like it or not the US is hooked on the new car drug & the withdrawal pain is not something anyone wants to deal with.

pyrodan007

Should be a little easier to get a TLX right now, just saw a Canadian TV ad which mentioned $2500 plus an additional $1000 off on certain models, offer ends Oct 1. I think sells must be that bad, to be confirmed on Monday.

FLYGUY31

Wait until the embargo gets lifted I think this weekend on the Accord. Should be able to get the TLX at a nice discount this holiday.

iforyou

iTrader: (1)

It's about time but still nothing compared to the pre-MMC. My colleague got his 2016 TLX 2.4 Tech for CAD$8k off.

The new accord looks really good inside and out. It's packed with features. I'm really digging the interior.

KTDJ

Still waiting, haven't decided exactly on when, but before the new year for sure. I've been transferring my future payment amount to a separate account for a while now, so I'm already used to the monthly payment. I'll just use it as a bigger down payment when the time comes. Dealership keeps calling every couple of days, but I'll but when I'm ready and the deal comes together.

KTDJ

I wonder if they will drop further below the 2,500 last month. Do you know if that chart that is posted is just US sales or is it entire North America?

pyrodan007

Pretty sure that table shows both US and Canadian sales for the month. More info can be found on www.goodcarbadcar.net

svtmike

It is what I have done in my life, and it has served me well. And that is without limiting myself to appliances. There are satisfying cars across a wide price spectrum.