Comments on: Driving Too Much Car: Not Millionaire Next Door

By: k374

k374 — Fri, 18 May 2007 22:05:11 +0000

People here in SoCal buy Lexuses, BMWs and Mercedeses like it's nothing. Where does all the money come from you ask? It's Real Estate!! People's homes have appreciated 130-200% over the last 7-8yrs. For a lot of those people who bought in 1998 or 1999 they have locked in a serious amount of gains totalling hundreds of thousands of dollars. A large number of people have become permanently rich due to this. A car is a small gift to themselves for the jackpot they have struck with their homes. Even if home prices go down a bit, which I think they will, many of these people who bought prior to 2000 will still be flush with cash due to staggering appreciation of their homes.

Current score: 0 (to vote for this comment, please visit the site)

By: Queercents » Almost Debt Free: Good Debt vs. Bad Debt

Queercents » Almost Debt Free: Good Debt vs. Bad Debt — Tue, 15 May 2007 15:58:51 +0000

[...] Good debt falls into a bit more of a gray area. Take current real estate market conditions, for example. Nina pointed out that many sub-prime borrowers are hurting significantly from their home loans, while I discussed that home values are stagnating or even depreciating in some parts of the country. Auto loans are another gray area. It's a necessary expenditure for some, but there is risk for driving too much car. I'll talk more about managing good and gray debts later in this series. [...]

Current score: 0 (to vote for this comment, please visit the site)

By: FrugalZen

FrugalZen — Fri, 11 May 2007 22:00:45 +0000

I have to admit I have a different look on Vehicles than most...but then my Father owned a Car Dealership and when I was 16 I had a choice of 500 on the lot to pick from....and still wish I had that first car...sigh... But cars a a Commodity to me not a prized possession as they are to most....and the choice when I go out with friends is you ride in the 82 Chevy truck or we take yours.. But at 50 I've never had a Car Payment....

Current score: 0 (to vote for this comment, please visit the site)

By: Ronia

Ronia — Wed, 09 May 2007 12:14:42 +0000

I drive an 11 year old Honda Civic. It is very reliable, and I figure that I'll probably get another Civic (hybrid) in a few years. The funny thing is, my co-workers drive very expensive luxury cars, and while they like to talk about owning such-and-such brand, they also frequently talk about how their luxury cars are back in the repair shop - again. And their car payments.

Current score: 0 (to vote for this comment, please visit the site)

By: DivaJean

DivaJean — Tue, 08 May 2007 17:56:07 +0000

I hate that America (in general) has this dependancy on the belief that each man woman & child *needs* their own car. I work in a cubicle downtown and parking costs more than taking the city bus. Yet I am the only person around who does so! Why?!? One day out of the year, I may need to borrow or rent a car to go to an annual training. Otherwise, I just have to plan ahead. Why would I ever want to open up the can of worms of another car payment, another insurance payment, extras for upkeep, and rising gas costs?!? The sad thing is, my workplace is seeking out buildings more in the "business parks". Which would mean the end of bussing in and needing to either get a ride everyday or a car. I can't believe the continued urban sprawl and desire to use car gas for no good reason. And this would also be the death knell for my city's downtown with the relocation of 1200 jobs. None of the noontime pizza places, coffee shops, and delis would be able to sustain themselves if we really do go. And what's our main reason for moving? NO PARKING available. The lamest story ever. I would think that our employer could incentivize bussing to eliminate the need for the expensive move and save major money in the long haul. As for what the family has, we bought a new mini van last June, cash on the table (well, actually a cashier check), before my partner quit her job to become the stay at home mom. The dealer hardly knew how to handle the transaction! We moved where we knew things would be convenient- walking kids to school in the morning, picking them up in the afternoon- a hardware store, pharmacy in walking distance & a grocery store not too much further than that (could be nice woalk. Sometimes our car doesn't get used for 3 or 4 days at a clip- but we do need it to travel to visit relatives, vacations, etc.

Current score: 0 (to vote for this comment, please visit the site)