ShadowsPapa
Well-Known Member
- First Name
- Bill
- Joined
- Oct 12, 2019
- Threads
- 247
- Messages
- 40,483
- Reaction score
- 53,972
- Location
- Runnells, Iowa
- Vehicle(s)
- '25 JTMX, '23 JLU 4xe, '82 SX4, '73 Javelin
- Occupation
- Retired auto mechanic, frmr gov't ntwrk security admin
- Vehicle Showcase
- 3
That figure is really overly-simplistic, and has never even come close to fitting our realities here. I can't think of anyone I know personally who is at or near 20%, because if they were, they'd be already looking into debt restructuring or bankruptcy - but then again, I don't know what their housing expenses, real estate taxes and other expenses are.
The real figure is all over the map - depending on so many other factors and expenses.
I've always ignored it and gone by our own numbers, and my wife's spreadsheet (even my first wife had things drawn out on paper, dang smart women)
I determine what can or can't be afforded. The cost of housing is a huge factor - some are spending hundreds more a month than we were, food and other expenses as well. That meant that I had more freedom to determine reality for us. I'd bet that if I looked up my old pay stubs and compared to auto payments back then, we were at 20% or more because other payments were so low. I'd also bet there were years where we weren't even close, because we had other goals.
You can't lump all into the same bucket - for some, that extra 100 is going to cut into other things more important. For others, it's going to cut into other goals - it could be easily afforded, heck yes. At this point, my spreadsheet (or my wife's lists on paper these days) say I could technically "afford it", but not if I want to meet other goals.
The problem is those "formulas" leave out too much and are so general, it's a joke. For some, a vehicle costing even 10-15% of their take home would be a serious issue, for others, it wouldn't even sting a little, and for some, it would mean they can't take a vacation or upgrade windows in their house.
If the house is paid for, or the home mortgage really low each month, then they can afford more. If they went over the top on a home, then they'd better not even come close to 20% for a vehicle.
But people sit back and judge using "experts' numbers" that frankly, don't fit much of the population.
We walk in with a number in mind. They meet it, or we walk. Could we afford the next step up? Probably - but it would mean dropping other plans. Would it be a hardship? No.
And then there's the "I didn't need nor even WANT a Rubicon" when I bought. No way I'd even think of a step up. So this bit about getting the next level up - some don't want it, some prefer to NOT have it.
There's one reason and one reason only my wife has a JLU Rubicon - we could not find a lower level with the options and color in any other level. So we rearranged some finances, put some other things off - and there's a Rubicon in the garage. Really a sad waste - the lockers will never get used, the sway bar disconnects may as well be removed and sold and a standard sway bar put on.
It's another reason I didn't go with Rubicon for my JT - what a waste, and it meant that I could not afford power steps or a snow plow.
So in that respect - I could not afford a Rubicon or Mojave - we could not afford those because it would have cut into other plans - not because we'd be broke (although I'd hate to see lower numbers in the bank)
I almost forgot about the real costs of interest, and opportunity costs - take that extra 100 a month and put it in an IRA or other similar account, maybe money market account. Yes, it would not make a ton, but it would be better than spending it and paying interest on it.
That was my wife's thinking a few years back and how she was able to retire at age 57 and me at 60. We took that extra money the next level up would have cost and invested it.
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