Why do Americans buy so much stuff they can't afford? Like buying a $40,000 car when you have only $5000 in your bank account?
- Anonymous8 months ago
Most of us don't. I was lucky. My parents taught me at a young age the value of money. I still remember going with my Dad to purchase a brand new vehicle. The salesman would ask if my Dad was financing. My Dad responds that he was paying cash for the car. Always loved seeing that salesman's dopey smirk disappear.
No, my parents weren't rich. They managed money properly, did their research before going to purchase a vehicle. Meanwhile, our neighbors/friends were taking out massive loans for the top of the line vehicles. Only a few months later seeing a tow truck outside repoing the car.
- 8 months ago
not all of us do.. Actually my car is a 98 and I paid 4 grand for it in 2010.
- TheRealLv 68 months ago
Why does the rest of the world worry about what we do?
- What do you think of the answers? You can sign in to give your opinion on the answer.
- curtisports2Lv 78 months ago
Many people operate on a principal called cash flow. They budget their expenses. They finance vehicles and houses and other major expenses. If their monthly income will allow them to make the payments on a financed vehicle and everything else they need - food. clothing, a place to live, heat and lights and etc etc etc, and they happen to have some money left over to put into savings, that is called positive cash flow. They can afford the vehicle.
Businesses operate the same way. They borrow for their major capital expenditures and pay for them out of their business revenues.
I would have never owned a home if I had to save until I paid cash for one, because at the same time, I would have had to pay rent to live somewhere. I have financed vehicles but I follow the rule that you shouldn't finance one for more than three years. If you have to stretch it out to five, six or seven years to make the payments fit your budget, you can't afford that vehicle. A lot of people don't follow that rule and I always have. But then, I've never paid more than $18,000 for a new car. Our cars are paid for but they are 8 and 10 years old. We keep them in good repair, and as soon as we paid the loans off we banked the monthly payments we were making and have now saved almost enough to pay cash for a $25k car.
- Pearl LLv 78 months ago
cause they want it
- Trump 2020Lv 78 months ago
To many people, it's important to appear better off than they are.
- TomalochkLv 68 months ago
They bought Alaska once
- jimanddottaylorLv 78 months ago
And they end up paying $80,000 for that car.
- 8 months ago
because they buy it on credit because their wants override their needs