So $3300 a month just for having two tesla’s? And other debts too? I wonder what debts, since you prioritize the tesla’s over them.
Did you skip economics class or did you miss education in general? That this is unsustainable must have been crystal clear long ago
He likely owns a contracting company that thrives off hiring illegal immigrants and his idea of “struggling” is sometimes a big-ticket customer doesn’t pay in cash so he has to pay taxes.
IE: every conservative with money in the entire fucking country.
Lol economics class. Skipped by 100% of US high school kids since it doesn’t exist.
Yeah this is less annoying Tesla and more real sad American economics. We aren’t taught how to manage debt, and this poor fool has ruined at least the next decade because he wanted two new shiny things and the bank said sure.
In 2008 the banks were to blame for sure for giving out bad debt and then gambling on it, but for me it showed how financially illiterate so many Americans are. The simple difference of seeing what the bank says you can borrow, vs what you should borrow are very very very different things.
It never needed to be this complicated. The working class shouldn’t be expected to trust some faraway stranger to invest their money, and then be called illiterate if they pick the wrong stranger or invest poorly themselves. It’s always been to set us up for failure and blame.
The only business that the average person knows more than average about is the one at which they work. But heaven forbid we start voting/betting on what would be best for our own workplaces.
We aren’t taught how to manage debt,
Do people need to explicitly be taught “You bring home $5,000 after taxes. You spend $2000 on rent, $1000 on fixed bills, $1000 on semi-fixed expenses, and $500 on fun. Do not buy a thing that raises your fixed expenses by $2000”?
I guess so.
I mean, I think a lot about a guy I worked with years ago. He said as soon as he turned 18 he got a credit card and maxed it out. No plans to pay it. Just enjoyed having a new TV, clothes, xbox, shoes. And then he got in a lot of trouble, which should have surprised no one. But at least he was getting his life together, ten years after the fact. Though we haven’t talked in years. I worry he’s a trumper, despite him being hispanic.
Youre assuming people put in the effort to know where there money actually goes. A lot of americans have never made a budget. They get to the end of the month/pay period, see how much money they have left, and go spend it.
And like someone else mentioned, its not always consistent. Different months have different needs and income can fluctuate. And they certainly never account for that
Well, economics is a mandated class in my city (not sure about state), so yes, we did the basic “never spend more than what you have” and “calculate plan A vs plan B vs buying something outright” and showing how by-now-pay-later/credit is always worse than just spending what you own, but try to at least get something with low APR when you do have to get loans. Like I looked at whoever had the best APR rates when choosing a credit card for college students, although I always pay the full balance every statement.
But like the other comment said, it’s the fact that it’s hard to teach an 18 year old not to be impulsive with their money, especially if said 18 year old’s parents never really emphasized frugality to their kid. Some people are just crazy and learn only by being burnt, so while I feel negative spending any kind of money outside of bare necessities (gas, lunch), some people max their card out buying Gucci and a PS5 Pro.
We’re taught debt is a scary bad thing, but we also need to learn how to turn your life back around when you start going into debt, or when you’re deep in. Gen Z is already experiencing far more debt than any previous generation, and we have no idea how to get out.
A poll by Talker Research for Newsweek revealed that Gen Z—born 1997-2012—carries the highest average personal debt when compared to older counterparts. Gen Z carries the highest average personal debt, at $94,101—far above millennials ($59,181) and Gen X ($53,255)
Economic reports, including recent findings from the New York Federal Reserve, confirm that Gen Z is falling behind on debt payments at increasing rates, with more than 90-day delinquencies at their highest level in three years.
In your over simplified example I still say yes they should. However we both know it’s more complex than that. Loans, interest rates, interest types, payoff schedules, taxes, credit cards, other types of financing - to a huge chunk of people it is overwhelming. Most Americans go into buy a car or get financing and don’t even ask about interest rates, most only want to know what the monthly payment is.
American society tries to force debt on you and they try to hook you as soon as you can legally sign a contract. . When you get into college, you are inundated with offers from tons of CC companies with seemingly good terms but they’re actually horrible. It’ll say something like 12.9% interest rate, but in the fine print it tells you that it jump to 23.9% if you’re late on a payment. One brain fart or patch of bad luck and you’re fucked for as long as they can keep you under their foot.
If you’re fortunate, you had parents who taught you how to avoid the worst of them and to manage debt. But even so, it’s not easy because there are so many traps. Worse still, you have to do it. If you don’t get a credit card, you will have a very bad credit rating. That means when you go to buy a car or anything else that has to be financed you will get shit terms. It even makes it harder to get an apartment because the manager will check your credit before offering you a lease.
If you’re fortunate, you had parents who taught you how to avoid the worst of them and to manage debt.
My parents didn’t especially go out of their way to teach me to be frugal, but I guess I learned from watching them. The idea of buying something I can’t actually afford on a high interest credit card makes my skin crawl.
I don’t get why they were approved for 72k when they still owed 44k on the other car. Unless they had a rich cosigner the financial company is partially to blame for seeing their outstanding debt and still trusting them with another 70k.
They’ll approve way more than they should, but also they probably quoted high interest rates to make up for the risk. People need to see high interest rates as a red flag that the bank really doesn’t believe you but are just feeding you rope while you tie your own noose.
Technically there’s a plus in that this is how people with marginal finances get any credit, have access to any car (and yes cars are unfortunately necessary in too many places). But I’m not sure we’re doing them any favors
Oh you can be approved for a ton of debt that you can’t actually afford. Banks take the position that it’s your debt and you can do what you want so long as you can make the payments. They don’t care if you spend 90% of your income on your debt payments. (Remember they get money from the interest so the worse you are at repaying the better it is for them).
When I got my mortgage they approved us for 2.5 times what we asked for it. It was asinine. We took a much more modest house and have been happy with that.
Because it’s probably an 8 year loan which has a six year overlap with the other 8 year loan. This shit makes lenders rich because the interest is all front loaded so 4 years in when the idiot defaults on the second loan they’ve already gotten like 80% of that amortization and can then just repo the vehicle and do it all over again.
He has TWO luxury cars and then he’s “scraping by for too long”?
Why did you finance two luxury cars when you need only a means of transportation?
Part of our decay in America is we’re so isolated from discomfort and the world’s problems that our idea of “struggling” is wildly removed from the rest of the world.
dont worry, america as a whole will be getting a wakeup on that soon enough
Psh. “As a whole” if there’s any justice.
Chances are it’ll just disproportionately affect all of us who have to drag ourselves outta bed at 6AM to clock in at 8, and our crippled wages will afford less bread.
And our commuter shitboxes will start to make funny noises and we’ll hope it will roll another week, while they’ll be more costly to insure and keep fueled.
And these people crying about their inconvenient luxuries will definitely be heard the loudest.
“Muh property tax on muh second house went up 0.5%! NOT FAIR!”
“Charging my personal fleet of Rivians and Teslas has gotten more expensive! Everyone else must be a communist and the immigrants did this!”
Or however that sort of brain works.
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If I can remind you of history, for a few years used teslas kept up prices with new. You couldn’t go wrong.
What everyone forgot then and seem to have forgotten now, is its mostly supply and demand. It has almost nothing to do with the actual car
- For a while there was ridiculous growth and the manufacturer couldn’t keep up with demand, so used car prices stayed high
- now growth has slowed, there are other manufacturers and we’re in an adjustment period where supply is ahead of demand. Of course used prices are low.
Basic supply and demand kiddos
I’m not going to bother pointing out all of Musk’s comments regarding teslas being an appreciating asset, there is no point. The Musk fans who won’t change their opinion based on new information anyway are basically Trump voting soy bean farmers and cattle ranchers.
Best to agree to disagree and move on.
Level 7 susceptible in real life.
Why would anyone take two loans to buy two cars? Is this normal in America?
Many new vehicles are financed, it’s why most ads here (Canada) will give you the biweekly price. Annoyingly, when you do go to a dealer, they are usually able to give a better deal when you finance compared to if you buy outright. The nice thing is though legally we can’t be penalized for paying it down early, so there’s nothing to stop you from financing and then paying it off.
Car payments are a pretty common thing, $1400 monthly in car payments not so much.
they are usually able to give a better deal when you finance compared to if you buy outright.
Which is why I have not, nor will ever buy a new car in my life. Regardles of any “deal”, you piss away 20% of value just driving it around the block.
Agreed. The closest thing to “new” I’ve gotten is 2 years old after a lease has expired.
I’ve purchased two cars new. Still own both of them.
One is a Chevy Sonic that is a reliable little stick-shift hatchback that was inexpensive when I bought it, and have used for over a decade. The design had hardly changed between years and was known to be reliable. It probably didn’t drop in value nearly as much as most other cars - I admittedly wouldn’t know because I’ve had no interest in selling it.
The other is a Toyota RAV4 plug-in hybrid, which essentially didn’t exist used when I got it. They continue to be challenging to acquire. I wouldn’t be surprised if I could sell it for more than I still owe on it, and I got it on a lease-to-own with zero interest (the dealership wants the opportunity to upsell me when the lease is over).
It’s possible to buy new and not get screwed over. It’s not common, though.
No, it’s not. At least for less than multi-millionaires with 10+ figures of income a year. And most banks are smart enough to not lend people that kind of money for more than one showy vehicle like that. Banks understand the depreciation involved.
Car loans are depressingly common. It’s like normal people haven’t heard of second hand vehicles.
Two loans is pants on head territory though, even for the US.
Car loans are depressingly common. It’s like normal people haven’t heard of second hand vehicles.
I have heard of them. That’s why I take loans for secondhand cars.
IDK, have you tried sports betting?
Stupid chode.
Holy shit, how is this so readable? We really can talk this way
A man of taste and discernment
Jesus fuckin christ, so many layers of memes!
Based on the fact that made perfect sense, I am now certain human language is undergoing a radical transformation.
J. Jonah Jameson, laughing maniacally.
$110k in two cars that aren’t even speciality cars. I mean, if one were a Porsche and the other some kind of Super Splat Pack Snakebite Gangrene Edition of an American muscle car I could see those prices, but at least with the latter two you’re paying for your ego and not Musk’s.
Exactly. That kind of cash could get you a gently-used supercar, and you’d still have enough money to fix it up and do it all a second time.
It’s called the “Super Splat Pack ScorpionSting Gangrene Edition” and in 30 years it’ll be worth almost exactly what I paid for it minus 90% depreciation thank you very much
NO LOWBALLERS…I KNOW WHAT I GOT.
I ate ramen for breakfast today.
I want these people off my planet entirely.
1400 USD is about 8900 DKK.
This person spends more money on his cars per month than my rent. And he’s complaining about being stuck in a financial bind.
hes paying 3300 USD, 1400 per car(x2) + 500 INS, so even worse
3300$ is about 2800€. After taxes, I earn 2600€ a month and live very comfortably on that (50k in savings/etfs, never taken a loan in my life).
Really hope that guy doesn’t do anything with numbers for work, I would not trust his math skills.America is a country where people drive Lexus and Mercedes home to trailer parks.
Jesus.
Fucking.
Christ.
Imagine having all that money, then making such an absurd and horrible financial decision just because you’re a Musk fanboy.
You mispronounced fascist. That’s what all cybertruck owners are.
Absolutely insane. More than my mortgage. Really curious how much this person makes. Is it 50% of their net income? 70%? The sheer logicistics seem insane unless you’re making a shitload of money (over 200k).
Americans spend stupid money they don’t have on the stupidest shit, all because they want to impress people.
Is this bait?
Going into debt to buy not only one, but two teslas? I’ll call it bad investment.
You never know, maybe they’ll become classics in the future holds back laughter
he needs a third so he has a better chance of having one that isn’t in the shop.
Thats so dumb its hard to believe lol. I wonder how he knows where to sign papers
Uh, looks like 1 cyber truck and 1 model Y. Still appropriate for debt ridiculousness.
This dude is paying >50% more on fucking car payments than I do on my mortgage, on top of other debts. Who is lending these people money? Like I make okay money, but I’m still driving a 13 year old vehicle and not feeling like I’m in a position to take on a car payment in this economy.
I think people who shouldn’t are just taking higher interest loans that the dealerships are pushing on them because they are higher risk. They want status symbols and are too dumb to realize they can’t afford them. The car dealer pushes it through because there’s not really any risk for them.
I heard they’re doing ten year loans now for some cars that are around $100k, so I think people are falling for that, then wanting the next new thing and rolling the negative equity into their next one.
… What I can’t grasp is how he still owes $44k on a 3 to 4 year old vehicle that was around $60k to start when his payments are that high. Unless he misspoke and meant $1400 combined and has some long-ass financing term it doesn’t make sense.
You can always find someone willing to offer a loan but they’ll set a higher interest rate for the extra risk.
Just another way the guy should have realized he was being an idiot
when you learn just how easy $ is to get (once you have starting capital), most quickly lose respect for how hard getting that initial amount is
even moreso for the people born into wealth, who have never truly had to fight for anything in their lives
there’s this massive international casino called the stock market, where all the richest degenerates love to throw their $ around trying to make their line go up faster than someone elses. most have zero plans to ever spend any of that $ in the real world unless forced to.
when you learn the rules to that casino it’s effectively infinite $ (to a point, there are scaling/effort-reward issues past like… 500k or so)
This person does not sound like they got to the point where they have much money to throw around. They just do it anyway
sounds like they’re one of those born into wealth to me
If that were true, you’d expect them to have some…
This isn’t a cybertruck or Tesla issue. This is a stupidity issue.
But they’re posting to Cybertruck Owners Only in order to hear from someone with good judgement.
He’s hoping for a clever solution, like mining Dogecoin with the Cybertruck battery for free heating.
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He could get the tent dlc and save on rent. Also doesn’t look out of place under a bridge.
