Originally Posted by PandaBear
The problem is not with $554 payment, the problem is with them buying something way too expensive.
If the owners can afford it and the loan has a cheaper rate than the mortgage, a loan is fine, even if it is $554, if he has money to spend he is ok. $300 a month is not affordable for people who can't afford it, but $554 for people who can afford it is not a big deal.
We are brainwashed to believe we all need V8 SUV with AWD and all the features to be "safe", but in reality we only need a FWD 4 cylinder or a compact pickup (you can rent a truck 2x a year and still be ahead in savings). We all just want the latest to feel good, if it is not SUVs it is sport cars, or luxury cars, or Tesla, or whatever. It is human nature, it is the low interest rate, and the bank trying to encourage lending so they can make money.
I know a few legitimate millionaires and they all drive vehicles under $40K.
Only one of them have a new AMG Benz.