So, why is GM big oversized SUV’s so darn expensive?

[wr]

They are selling at a loss to get you wrapped up in financing. They get their kickbacks when they move inventory. Not off sales price. Just like the cell phone stores.

 

[beacon ave south]

Financial management should be a mandatory class in high school

They teach sex ed in hs and you still got ppl raw doggin having unplanned kids and catching stds.

Cant help people that know the consequences but want that temporary satisfaction.

 

[plansb]

you got a 2.5% mortgage with no money down? How much you paying in PMI? I didnt even know you could get a mortgage with no money down, i thought minimum was 3% via FHA.

 

[atlsfinest]

I don't get, how do they even approve people for that even on cheap vehicles?

you just walk in and say yea I want that Honda Civic but 120 months please

The American financial system is based on debt and we never learn. This is the exact same thing that happened in 2008 and led to the financial crisis. Because the economy was doing well, companies began taking more risks and giving out loans to people they knew wouldn't qualify. People making the minimum wage were being qualified for $500k home loans, it was nuts.

It's the same thing here, a guy on minimum wage can afford a $50k car If you stretch it out for a decade.

 

[sharpshooter718]

I drove a 2020 Tahoe.... It drives as smooth as my mdx...was surprised at the handling and suspension... It drove like a luxury suv to me....

 

[wr]

The American financial system is based on debt and we never learn. This is the exact same thing that happened in 2008 and led to the financial crisis. Because the economy was doing well, companies began taking more risks and giving out loans to people they knew wouldn't qualify. People making the minimum wage were being qualified for $500k home loans, it was nuts.

It's the same thing here, a guy on minimum wage can afford a $50k car If you stretch it out for a decade.

Word.
They consider growth the disbursement of debt. This system needs an upgrade. They play this game where we are always chasing some unattainable debt free balanced budget but the system is not designed that way.

 

[vood99]

General rule of thumb is that you NEVER pay MSRP on a GM product as they are known to offer massive discounts and 0% financing (if you qualify).

Their full size, BoF trucks tend to have great longevity so if anything it's the driver that will get tired of them and sell them after a few years. Probably one of the few vehicles on the road that could in theory warrant a longer term financing strategy.

 

[uncalled4boy]

Not to mention almost all car not payments are around $500 and up. That's for cars, trucks and SUVs.

Some of these tote the note second chance finance places got poor folks making 2 car payments a month with low jack kill switches for when the payment is late.

Knew A Girl That Had One Of These. Had To Make A Payment Weekly And They'd Send Her The Code So She Could Start The Car.

Literally The Wildest Thing I've Ever Seen. Had Never Even Seen/Heard Of Such.

 

[atlsfinest]

Word.
They consider growth the disbursement of debt. This system needs an upgrade. They play this game where we are always chasing some unattainable debt free balanced budget but the system is not designed that way.

I'll admit that the deck is stacked against the average person but it's up to the individual to have a certain level of personal responsibility and restraint. When I bought my house, I was approved for $750k (which is nuts, given my income at the time) on a 30 year mortgage but I ended up spending $450k on a 15 year mortgage. When I bought my last car, I could have gotten a brand new fully loaded Benz but I got a certified pre-owned Toyota Avalon. Lenders will try and trap you with lower monthly payments and incredibly long financing terms (and higher interest rates). It's up to you to show restraint and say no

If you have a stable job, a debt-free/near debt-free lifestyle is attainable. You just need to change your mindset. What do you really need and what are you willing to sacrifice? Do you need a new car every 4-5 years? Do you need new clothes and shoes all the time? Do you need to drop $1000 on a new phone every year? If you feel like you do, ask yourself why?

People go into debt trying to impress others and prove that "they've made it". This is why the average American is so deep in debt. Living a debt-free lifestyle is as much a mental change as it is a financial change

 

[vood99]

I'll admit that the deck is stacked against the average person but it's up to the individual to have a certain level of personal responsibility and restraint. When I bought my house, I was approved for $750k (which is nuts, given my income at the time) on a 30 year mortgage but I ended up spending $450k on a 15 year mortgage. When I bought my last car, I could have gotten a brand new fully loaded Benz but I got a certified pre-owned Toyota Avalon. Lenders will try and trap you with lower monthly payments and incredibly long financing terms (and higher interest rates). It's up to you to show restraint and say no

You're living diligently - most people want to stunt/flex and it catches up to them eventually.

 

[NToweG]

the longer the better as they make money on interest charged... but yeah, I've never seen anything like that or have even been offered something like that. Then again, I have excellent credit and wouldn't even entertain something like that. In fact, when I went in to buy my Impala a few months ago I went in and told them what I wanted my interest rate to be and they called GM Financial and made it happen. Same thing with the home loan I am about to get. No money down (outside of closing costs) on either loan as well, and the interest rates are low on both (3.25% and 2.5%, respectively).

My car payment is under $300/mo... over $60 less than my previous car. Hell the insurance is even cheaper. I made sure I was in a much better position this time around before buying this car. Last time I paid off and closed 2 credit cards right before financing, which I later learned was a mistake. Interest rate is almost half of what it was last time.

2 questions. What type of home loan are you getting?


Did you just pay off those credit cards or did pay them off AND deliberately follow up with having the account closed?

 

[beacon ave south]

I'll admit that the deck is stacked against the average person but it's up to the individual to have a certain level of personal responsibility and restraint. When I bought my house, I was approved for $750k (which is nuts, given my income at the time) on a 30 year mortgage but I ended up spending $450k on a 15 year mortgage. When I bought my last car, I could have gotten a brand new fully loaded Benz but I got a certified pre-owned Toyota Avalon. Lenders will try and trap you with lower monthly payments and incredibly long financing terms (and higher interest rates). It's up to you to show restraint and say no

If you have a stable job, a debt-free/near debt-free lifestyle is attainable. You just need to change your mindset. What do you really need and what are you willing to sacrifice? Do you need a new car every 4-5 years? Do you need new clothes and shoes all the time? If you feel like you do, ask yourself why?

People go into debt trying to impress others and prove that "they've made it". This is why the average American is so deep in debt. Living a debt-free lifestyle is as much a mental change as it is a financial change

This man gets it.

 

[slaughterx]

I paid them off then immediately called and had them closed out... mostly because Best Buy and Dillards both pissed me off.

I plan on doing a 30 year conventional loan but I plan on having it paid off in 15-18 years or offering to let my son buy it off for the remaining balance when he turns 18 if he wants.

 

[NToweG]

I paid them off then immediately called and had them closed out... mostly because Best Buy and Dillards both pissed me off.

I plan on doing a 30 year conventional loan but I plan on having it paid off in 15-18 years or offering to let my son buy it off for the remaining balance when he turns 18 if he wants.

Conventional, with no money down?

Thanks for the answers & quick reply btw....

 

[atlsfinest]

This man gets it.

Not to say that I have all the answers but I'm fortunate that I got a good financial education for my parents. A lot of people, especially black families, don't talk to their kids about money.

It does take a lot of willpower though. When you're doing well, people are going to think "Why is he only driving a Toyota?" or "Why is he only living in this neighborhood and not a nicer one?" People are going to think you're broke because they're not stunting. The first step is to stop caring about what other people think and do what's best for you and your family (easier said than done)

 

[finessence]

I'll admit that the deck is stacked against the average person but it's up to the individual to have a certain level of personal responsibility and restraint. When I bought my house, I was approved for $750k (which is nuts, given my income at the time) on a 30 year mortgage but I ended up spending $450k on a 15 year mortgage. When I bought my last car, I could have gotten a brand new fully loaded Benz but I got a certified pre-owned Toyota Avalon. Lenders will try and trap you with lower monthly payments and incredibly long financing terms (and higher interest rates). It's up to you to show restraint and say no

If you have a stable job, a debt-free/near debt-free lifestyle is attainable. You just need to change your mindset. What do you really need and what are you willing to sacrifice? Do you need a new car every 4-5 years? Do you need new clothes and shoes all the time? If you feel like you do, ask yourself why?

People go into debt trying to impress others and prove that "they've made it". This is why the average American is so deep in debt. Living a debt-free lifestyle is as much a mental change as it is a financial change

Can’t possibly expect the average person to think like this, when materialism is shoved down their throat everyday on TV, in real life, on their phones, etc. it’s impossible. This is why people commit crimes and take risks. It’s unrealistic. I agree with everything you’ve said though.

but it’s unrealistic for people to live within their means, when civilization has become so materialistic

(I’m on your side bro )

 

[finessence]

You're living diligently - most people want to stunt/flex and it catches up to them eventually.

bingo. “Stay down until you come up!”

 

[atlsfinest]

Can’t possibly expect the average person to think like this, when materialism is shoved down their throat everyday on TV, in real life, on their phones, etc. it’s impossible. This is why people commit crimes and take risks. It’s unrealistic. I agree with everything you’ve said though.

but it’s unrealistic for people to live within their means, when civilization has become so materialistic

(I’m on your side bro )

Totally agree. Between people being constantly inundated with advertising trying to force them to consume more and more, how easy it is to get credit and social pressure from family, friends, co-workers, etc, It's really hard to show restraint.

Also, I'm not trying to act like I'm a monk , I like nice things as much as the next guy but I tried to focus on my goals

 

[Bert.]

Can’t possibly expect the average person to think like this, when materialism is shoved down their throat everyday on TV, in real life, on their phones, etc. it’s impossible. This is why people commit crimes and take risks. It’s unrealistic. I agree with everything you’ve said though.

but it’s unrealistic for people to live within their means, when civilization has become so materialistic

(I’m on your side bro )

amen

 

[アミーゴ]

You could have had 10 if you wanted though.

I don’t have your income, sir

 

[storm2006]

offering to let my son buy it off for the remaining balance when he turns 18 if he wants.

I don’t know the full scope of your mortgage or your son’s work history/financial situation but how is he going to have enough saved by 18 to pay off the balance of your mortgage

 

[slaughterx]

He could either get his own mortgage or take on mine at that point and pay monthly... honestly I plan on paying it off in 15 years anyway, but my grandfather sold my father his 2 flat apartment building for less than 20Gs... so basically something like that.

I feel like I should sell it for something though because from what I've seen, every house that has been handed down for free from a family member usually gets sold by them for next to nothing and those same kids end up paying rent somewhere when they could have just been paying taxes.

 

[storm2006]

He could either get his own mortgage or take on mine at that point and pay monthly... honestly I plan on paying it off in 15 years anyway, but my grandfather sold my father his 2 flat apartment building for less than 20Gs... so basically something like that.

I feel like I should sell it for something though because from what I've seen, every house that has been handed down for free from a family member usually gets sold by them for next to nothing and those same kids end up paying rent somewhere when they could have just been paying taxes.

Ahhh I see. Thanks for clarifying. Regardless of the decision he makes, he’s lucky to have a smart and financially savvy father. Salute, sir.

 

[whitemamba27]

cars are expensive because the market has turned to 7 year loans and selling the customer on the monthly payment...

 

[laced navajo]

General rule of thumb is that you NEVER pay MSRP on a GM product as they are known to offer massive discounts and 0% financing (if you qualify).

Their full size, BoF trucks tend to have great longevity so if anything it's the driver that will get tired of them and sell them after a few years. Probably one of the few vehicles on the road that could in theory warrant a longer term financing strategy.

THIS!!!

I bought a fully loaded Trail Boss before this pandemic started!
MSRP was 60k
25% off (Incentives and Rebates)
These types of deals are out there. Just gotta shop for em