How can you afford the cost of a new SUV?

[Doubeleive]

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.... :-(

yes there is plenty of rich people and business's out there that can afford to throw money out the window, I have have a housefull of stuff people toss out because they can afford too. i resell it and make a living off of them.
I will just never be one of them........

 

[StephenPT]

At the end of the day, it's only money. I don't say that to mean live frivolously - but don't let it control your life. Max out your retirement accounts, focus on paying off your house (if it isn't already) and with what money is left over, enjoy life - build memories you and your kids will have the rest of their lives.

 

[DuraYuk]

At the end of the day, it's only money. I don't say that to mean live frivolously - but don't let it control your life. Max out your retirement accounts, focus on paying off your house (if it isn't already) and with what money is left over, enjoy life - build memories you and your kids will have the rest of their lives.

Absolutely. Be debt free. That's the key. Retirement accounts are great assuming the market works in your favor when you retire.

I'm all about living it to the fullest. I know plenty who never did and never get to enjoy the fruits of their work.

 

[B-train]

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.... :-(

When you find a clean one from out west or down south to replace it, hit me up as a local WI resident and let's rust proof it for long term good looks

 

[mountie]

I have a savings account to cover future repair costs ( '5 Yukon XL )..... Or improvements....

I'd rather do that, than a monthly $500 payment, on a SUV that is nearly like my '05, then the warranty runs out on the one I have been making payments.

In the past, when I just had my wonderful '88 GMC truck, I would rent a Tahoe for a long-fun trip.

 

[the 18th letter]

My answer is simple I can’t afford the cost of a new one of these SUV’s. To make it worse, I doubt I would spend the money on one if I could.

 

[Saltydog]

In response to the OP, when we purchased our 2021 Yukon it by far was the most expensive vehicle purchase for us but we wanted something we liked, room for the kids and hopefully last us a good 10 yrs.

As for affording it, my wife runs a business and it pays for the Yukon, plus it helped with tax liability when we purchased.

 

[mountie]

My answer is simple I can’t afford the cost of a new one of these SUV’s. To make it worse, I doubt I would spend the money on one if I could.

Some years ago, I was at the 24 Hours at Daytona. Near our pit-garage, there was a GM tent. Later I checked out the new Tahoe. Holy crap !! $78,000 ?? It was not a Surburban..

 

[Miami-Dade]

This thread is about people spending money on brand new vehicles...NOT ABOUT MONEY GOING TO UNIONS...I cleaned up a post on here about that. Next time someone will be on vacation.

 

[mrrairai]

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

This right here is the post!! Its all about the individual. I make over $200K and I will have a 25 Escalade because it is what I want and have worked many years for. There must be some enjoyment in life. I'm all for saving money and I applaud it but there has to be a balance. I never understood people that save their whole lives just to die and pass it on to someone else. Honestly makes no sense to me. Not saying that's the case in this forum but I've seen it all too often where people don't enjoy the fruits of their labor.

 

[mountie]

This thread is about people spending money on brand new vehicles...NOT ABOUT MONEY GOING TO UNIONS...I cleaned up a post on here about that. Next time someone will be on vacation.

It's about what you are paying for the SUV vehicle, and how much the stuff inside and out side the SUV actually costs. The 'higher' (?) price may be paying for non-vehicle costs. ( Bang for your buck)
( No intention to be political )
BUT..... I understand your "warning".

 

[Geotrash]

This right here is the post!! Its all about the individual. I make over $200K and I will have a 25 Escalade because it is what I want and have worked many years for. There must be some enjoyment in life. I'm all for saving money and I applaud it but there has to be a balance. I never understood people that save their whole lives just to die and pass it on to someone else. Honestly makes no sense to me. Not saying that's the case in this forum but I've seen it all too often where people don't enjoy the fruits of their labor.

I get it, trust me. I felt the exact same way until retirement was visible in my headlights. When we retire we want to travel and hope to have enough money left over to live comfortably well into our 80's. If we can do that, there won't be much left. If I had saved an extra $100K by age 35, it would be worth $500K today given the average rate of return on my investments, and $1.7M when I retire at 65. I could buy a fleet of Escalades with that money.

That's not to say we don't spend money right now. We're spending $15K to take the kids (13 and 16) to France, Monaco and Italy next summer, and we travel all over the place in our camper today. All I'm saying is that I'm happier with a loaded '07 Yukon XL than I would be with a new Escalade ESV. I know this because every time I spent a small fortune on a new car (Land Rovers, BMW's), the feeling wore off in a matter of months. And I absolutely love squeezing every bit of value out of my Yukon now. My neighbors all have cars less than 2 years old and they compliment me all the time on how well I keep our Yukons (we have two).

And I know that's just me, and it's not for everybody, but aging and having friends with money has changed my perspective. My friend Charlie is a partner in a law firm at 60 and makes bank. He buys used cars and drives them into the ground. He currently has an '04 Isuzu Rodeo he bought when it was 10 years old and loves it. Before that was a '95 Nissan Maxima he drove for 15 years. My friend Scotty was a sales rep for telco equipment and retired with several million in the bank a few years ago at 60. He drives '06 and '09 Suburbans. My friend Bill is an investor with millions and drives an old Subaru. The two things they all have in common is total freedom to spend their time however they want traveling, and they don't spend money on depreciating assets.

 

[Jocko PDX]

This is a complicated issue that has to be answered by each individual facing the question. Some key points to consider: How much actual value/enjoyment do you derive from vehicles? How much stress do you feel when finances are tight? If you spend the $ on this vehicle, what other things in your life will you be going without. A couple moths ago I spent $92K for a loaded Denali. I paid cash for it and I have no debt, but this $92K is still haunting me. I am actually still mostly driving my 2003 Z71 suburban most days that just won't seem to die, and still drives great (just leaks a lot of oil). I am struggling with my decision to spend this much on a vehicle. And its not because I can't afford it, but more because deep down I know that I am probably not going to derive $92000 of pleasure out of any vehicle. Part of the reason that I paid that much was because this will likely be the last vehicle I will ever buy. (As I said I am still driving my 03, so we don't get new ones often), so again its complicated. As some folks have stated above, they like to live in the moment. I applaud that, if you can do it without being concerned about the $. I am just a bit of a stress case so no matter how much I have I will always worry a bit. I had originally planned to buy a used Z71 Tahoe or AT4, but when I looked around almost all of the ones that had low miles were going for close to or above actual sticker price, and this time around I did want a fairly new one.. Anyway I am rambling and there are a lot of opinions on here to consider. Good luck with your decision.

 

[steiny93]

Back on the 'how can you afford' topic
A typical measure is not to exceed 1/2 annual income being tied up in depreciating assets.

I haven't really given that angle much thought, I've more so been; don't borrow money for cars / toys.
But the more I think about it, the more I'm liking the consideration of not being heavy with depreciating assets. Owning a depreciating asset is worse then the cost of borrowing in most cases (ie, it costs more to take the depreciation hit then to pay interest).

 

[mountie]

I get it, trust me. I felt the exact same way until retirement was visible in my headlights. When we retire we want to travel and hope to have enough money left over to live comfortably well into our 80's. If we can do that, there won't be much left. If I had saved an extra $100K by age 35, it would be worth $500K today given the average rate of return on my investments, and $1.7M when I retire at 65. I could buy a fleet of Escalades with that money.

That's not to say we don't spend money right now. We're spending $15K to take the kids (13 and 16) to France, Monaco and Italy next summer, and we travel all over the place in our camper today. All I'm saying is that I'm happier with a loaded '07 Yukon XL than I would be with a new Escalade ESV. I know this because every time I spent a small fortune on a new car (Land Rovers, BMW's), the feeling wore off in a matter of months. And I absolutely love squeezing every bit of value out of my Yukon now. My neighbors all have cars less than 2 years old and they compliment me all the time on how well I keep our Yukons (we have two).

And I know that's just me, and it's not for everybody, but aging and having friends with money has changed my perspective. My friend Charlie is a partner in a law firm at 60 and makes bank. He buys used cars and drives them into the ground. He currently has an '04 Isuzu Rodeo he bought when it was 10 years old and loves it. Before that was a '95 Nissan Maxima he drove for 15 years. My friend Scotty was a sales rep for telco equipment and retired with several million in the bank a few years ago at 60. He drives '06 and '09 Suburbans. My friend Bill is an investor with millions and drives an old Subaru. The two things they all have in common is total freedom to spend their time however they want traveling, and they don't spend money on depreciating assets.

I traveled that area back in 1997. In Nice, be sure to visit the "Old Town"...... In Monaco, be SURE to drive up the hill to ancient Eze. ( Google it and a wild view above Monaco , it is a fabulous walk around the tiny stone city and shops - Picasso lived there) .......( Drive west from Nice, to... Cann and San Tropez ( nice drive and cute coastal shops / food).
Oh, yea..... the beaches in Nice are top-less - friendly !! But wear beach shoes.... stones, not sand.

 

[mountie]

Geotrash...... I went to Europe a couple weeks after Europe's vacation/ tourist season. Most all hotels had a ton of rooms available. ( End of September ).... But that may interfere with your kid's school, unfortunately..... ( Italy )..... If you visit Milan..... DO NOT TAKE YOUR EYES OFF YOUR LUGGAGE FOR A SECOND....... Plus, the city needs a powerwash.. It was very dirty. ( And I was there in '97 )
We then drove up to Switzerland... The tunnels are miles long! Pretty amazing !!

 

[mountie]

We should thread vacation driving experiences in Member's Only, or someplace, ??

Places I'd like to go ( North of Florida, etc ) but no clue for when or where....

 

[tooleyondeck]

If I was considering spending 80K+ on a car I would personally buy a ZL1 1LE and keep my ole reliable GMT800s for towing and hauling the kiddos, but I'm the exception, not the norm. All depends on what you value in a vehicle and your driving experience.

If you are an SUV fan and you enjoy that driving experience of sitting up higher with all the latest bells and whistles, then absolutely go for that new Hoe/Yuk/Esky.

 

[mountie]

For our in-state trips in Florida, we have an Infiniti QX50. I love it.... and it's got 325 -rear wheel drive HP!

 

[IEATZ28]

I have a similar income. After taxes, retirement, and insurance I’m probably bringing home around $85k a year. The thought of working for an entire year for something that sits in my garage makes me cringe… and I absolutely love vehicles! At some point you have to decide why you go to work everyday. If your income was double what mine is I’d say go for it, but if we are step for step you would be better off getting a used 2015+ rig with decent miles. Those can be found $40-$45k all day where I live, and you won’t have so much tied up in that depreciating asset everyone has mentioned.