Uber expensive pickups...how much of a trend ?

[Lessmore]

Very expensive pickups...loaded, beautiful interiors, etc. Is this a harbinger of the future...or just a temporary trend ?

How much luxury do people want and perhaps more to the point can they afford ?

Deluxe, albeit it pricey Ford pickups introduced.

[Jarlaxle]

1stgenfarmboy wrote:

Samsonsworld wrote:
I think there are better things in life to spend money on than a $70K truck...like booze, gambling and loose women for example. But since my wife won't let me have those, guess I'm stuck with a truck.

Yes and I need to also have money for motorcycles, guns, and motorcycles.

Fortunately, used motorcycles are cheap! (Though many MC dealers are delusional, price-wise.)

[Grit_dog]

4x4ord wrote:

Skid Row Joe wrote:

fj12ryder wrote:
I guess if you make several hundred thousand dollars a year it's no big deal to spend that kind of money and watch it disappear in depreciation over the next couple years. I just don't have that kind of discretionary income I guess.

There's more to consider than the incomes of those that buy expensive pickups. There have been some very productive savers among American workers, past and present, regardless their incomes. Income, isn't wealth. Assets are wealth. Depreciation isn't as important as some think it is to many prodigious savers and wealth accumulators.

I read some financial guru claim that you shouldn't spend more than 10% of your annual income or 5% of your net worth on a vehicle. If he was right you'd have to make $700k per year or have a net worth of $1,400,000 before you should purchase a new $70k truck. I think he is full of poo. A retired person with a net worth of $1,400,000 might not feel he can afford a $70k truck but something is wrong if a person making $700k annually isn't able to afford a new diesel pick up.

But does that consider the salvage value? Lol

[Lessmore]

1stgenfarmboy wrote:

Samsonsworld wrote:
I think there are better things in life to spend money on than a $70K truck...like booze, gambling and loose women for example. But since my wife won't let me have those, guess I'm stuck with a truck.

Yes and I need to also have money for motorcycles, guns, and motorcycles.

I used to say in my 20's that I spent my money on motorcycles and cars...the rest I wasted. 😄

[1stgenfarmboy]

Samsonsworld wrote:
I think there are better things in life to spend money on than a $70K truck...like booze, gambling and loose women for example. But since my wife won't let me have those, guess I'm stuck with a truck.

Yes and I need to also have money for motorcycles, guns, and motorcycles.

[transamz9]

Bedlam wrote:
I look at spending less than a year’s take home pay on a vehicle. Since I plan on a 10 year ownership or longer, that works out to less than 10 percent per year.

My wife only spent about 50% of her yearly bring home for her car. Do you think I should try and talk her into letting me take her left over 50% and add it to mine yearly for my next truck? LOL! I can seen a Pete 379 coming baby! HAHAHA!!!

[Samsonsworld]

I think there are better things in life to spend money on than a $70K truck...like booze, gambling and loose women for example. But since my wife won't let me have those, guess I'm stuck with a truck.

[Bedlam]

I look at spending less than a year’s take home pay on a vehicle. Since I plan on a 10 year ownership or longer, that works out to less than 10 percent per year.

[4x4ord]

time2roll wrote:

4x4ord wrote:
I read some financial guru claim that you shouldn't spend more than 10% of your annual income or 5% of your net worth on a vehicle. If he was right you'd have to make $700k per year or have a net worth of $1,400,000 before you should purchase a new $70k truck. I think he is full of poo. A retired person with a net worth of $1,400,000 might not feel he can afford a $70k truck but something is wrong if a person making $700k annually isn't able to afford a new diesel pick up.

was that the full price or the payment?
10k / month earned = 1k truck payment.

The "rule" is: pay no more than 10% of your income on the purchase price of a car. You can google 10% rule for car purchases and you'll see many people preach it.....I don't.

I wouldn't limit myself to 10% of my income to purchase a new vehicle nor would I be willing to spend 5% of my net worth on a new ride. However, when I had nothing 50% of my net worth wasn't enough to cover the cost of my truck.

[time2roll]

4x4ord wrote:
I read some financial guru claim that you shouldn't spend more than 10% of your annual income or 5% of your net worth on a vehicle. If he was right you'd have to make $700k per year or have a net worth of $1,400,000 before you should purchase a new $70k truck. I think he is full of poo. A retired person with a net worth of $1,400,000 might not feel he can afford a $70k truck but something is wrong if a person making $700k annually isn't able to afford a new diesel pick up.

was that the full price or the payment?
10k / month earned = 1k truck payment.

[4x4ord]

Skid Row Joe wrote:

fj12ryder wrote:
I guess if you make several hundred thousand dollars a year it's no big deal to spend that kind of money and watch it disappear in depreciation over the next couple years. I just don't have that kind of discretionary income I guess.

There's more to consider than the incomes of those that buy expensive pickups. There have been some very productive savers among American workers, past and present, regardless their incomes. Income, isn't wealth. Assets are wealth. Depreciation isn't as important as some think it is to many prodigious savers and wealth accumulators.

I read some financial guru claim that you shouldn't spend more than 10% of your annual income or 5% of your net worth on a vehicle. If he was right you'd have to make $700k per year or have a net worth of $1,400,000 before you should purchase a new $70k truck. I think he is full of poo. A retired person with a net worth of $1,400,000 might not feel he can afford a $70k truck but something is wrong if a person making $700k annually isn't able to afford a new diesel pick up.

[JAC1982]

So I thought of this post today. My husband is out buying a new 2017 F-350 King Ranch dually right now. "It's such a good deal". :R

[Charlie_D_]

JAC1982 wrote:
With interest rates at practically zero, why wouldn't you finance them and then invest your cash in something that will give an actual return?

Most of the people I know have nothing or very little to invest. That's why they finance 6 plus years and remain upside when they trade for something else in a few years.

[Charlie_D_]

ksss wrote:
According to my commercial salesman, largely the only people that walk in and buy a 70K plus diesel pickup are farmers (on the good years) and contractors. The average person making an average wage with average credit are buying used. There is no question that the prices have over shot the rise in wages.

If they are buying used why are the sales reaching new records almost every month? I see people buying new outrageously expensive cars and trucks because they view them as a status symbol of which few can really afford. See 1-2 year old loaded trucks on dealer lots that were traded in on newer more expensive vehicles. Guy posted on Facebook the other day wanting to sell his 2017 Ford King Ranch because he wanted a 2018. Insane. Those average persons of average wages and average credit can buy anything they want and finance for 72-76 months and no payments for 90 days. They then tire of it and wake up one morning wondering how they are going to pay for it.
A credit rating of 580 will get you the home of your dreams with little down. I see homes being for sale that have been sold previously 6-12 months ago. I envision another housing crisis and MOST of these buyers are millennials. They want it and they want it NOW!

[Skid_Row_Joe]

fj12ryder wrote:
I guess if you make several hundred thousand dollars a year it's no big deal to spend that kind of money and watch it disappear in depreciation over the next couple years. I just don't have that kind of discretionary income I guess.

There's more to consider than the incomes of those that buy expensive pickups. There have been some very productive savers among American workers, past and present, regardless their incomes. Income, isn't wealth. Assets are wealth. Depreciation isn't as important as some think it is to many prodigious savers and wealth accumulators.