Quote:
Originally Posted by BrianMSmith
The 350Z was produced during the time when everyone thought they were rich due to the housing bubble, and bought more than they could afford. The 350Z was everywhere in my neighborhood, sort of like mosquitos; most of of them (and other $30k plus cars) were bought with second mortgages (helocs) and other dodgy home financing (like $20k cash back on a 40 year zero percent for 3 years arm). I rarely see new cars on the road these days, and most of the new ones are Ford F series trucks, which have always been the best selling vehicles world wide. With the economy back to normal (ish), at least closer to normal than during the bubble, you will not see many new cars on the road that are priced over $25k (like we used to see), which is about the "affordable" car price for the average individual income (a single person with one income), according to historically typical economic trends. And the thing about history, is that it always repeats itself when it comes to physics, and that includes economics, which is a type of social physics.
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Pretty right on the money with most parts. I remember when I got my S2000 back in 2005 (new) it was no big deal and everyone in my community was getting some nice new car (or cars). I bought a new house in a new housing development with a standard 30-year mortgage and down payment that I spent a while saving for. I moved away from the house this year and it's a rental now, but it's only worth 60% of what I owe on it. Of the 50 homes in my community over 15 have gone through foreclosure, and 6 are currently going through the process. Great judgement with those 5-year ARMs!
It's rediculous that we let people be this stupid and back out of it. Every month I lose $500 on my rental home because the market is so crappy. In a steady economy I should be able to cover my mortgage with rental income (with a proper loan like I have).
I've had a few people I know tell me I'm being foolish and wasting my $ buying a new sports car in this economy. I've been told (amazing to hear btw) that it's probably something I can't really afford if I give it proper thought. It's ironic how people now act as though they know everything considering two of the three people who have said this to me foreclosed on their homes already. Of course, they drive nice cars that were purchased a few years back on HELOCs. Now they live in apartments!
