Sunday, October 22, 2023

An air of desperation

Don was scrolling through our local Facebook Marketplace buy-and-sell last night when he came across a listing for a 2023 Ford F350 truck. The seller wanted $73,000 for it.

"Seventy-three thousand!" exclaimed Older Daughter. "That's the down payment for a house! Let me guess, it has all the bells and whistles."

"Yep." Don started reading the list of amenities: Automatic this, heated that...

"That listing has an air of desperation about it," remarked Older Daughter.

And indeed it did. We started speculating why someone was selling such a brand-new vehicle, clearly barely used. We concluded the only reason someone would part with such a treasure was because of the monthly payments, which doubtless were at least $1,000/month for at least seven years. Was it buyer's remorse? Was it budgetary reality? Did the buyer just lose his job?

We recalled what Younger Daughter had mentioned when she was in boot camp in Great Lakes, Illinois: The number of car dealerships located just off base. Teenagers, newly enlisted and flush with the headiness of a steady paycheck and being away from home for the first time, would buy brand-new vehicles and then get saddled with crushing payments for vehicles they barely had time to drive before they were whisked off to another part of the world or deployed at sea. Madness.

But then, I think it's madness to spend $73,000 on a truck, too, unless the buyer is extremely well off or has a guaranteed job. It could also explain this headline from today: "Subprime Auto Loan Delinquency Erupts, Reaching Highest Rate On Record."

Whatever the reason, we hoped – for the seller's sake – he would find someone able to relieve him of this financial burden. $73,000 is an awful lot of money to owe for a vehicle, especially in these fiscally uncertain times.

13 comments:

  1. Vehicles are super expensive in general, even used in auctions trucks sell for a lot. I have known many people impulsively buy vehicles then end up selling them or losing them due to not being able to make payments. It used to be mainly younger folks making a stupid decision, now it's also the 40+ crowd too, buying stuff to impress others. I don't know how many people I have seen buy RVs and boats because it's the have to have item to impress neighbors and friends, but then they rarely use them and are making payments on them. You think trucks are expensive, look at brand new RVs!!! And those new ones are so poorly made with cheap materials, you always see people trying to sell those with them just being a year or 2 old. So many people are making payments on 1-2 vehicles, RVs, boats, UTV/ATV//motorcycles and a mortgage payments with assininely high cell phone bills too. It's no wonder so many are broke!

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  2. the wife and i know exactly what you are talking about.
    the daughter, who is presently stationed in Guam, has, sitting in our driveway, the 2015 Toyota she bought brand new. when she returns stateside in 2025, she will have a 10 year old, bought and paid for car with less than 30k miles on it.

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    1. And the opportunity cost for that decision? What will she have in 2025 if she hadn't of bought that new car but invested that money instead?

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  3. I'm often astonished at the general lack of financial sense we seem to be plagued with in this country.

    It's (another!) failure of the public education system, for sure but, more than that I think, parents don't teach their children basic economics. Perhaps because the parents don't know it themselves?

    Combine lack of financial education with the sin of "wanting to keep up with the Joneses" (what the Bible calls envy and pride) and many people, sadly, are financially strapped and trapped for years and years - if not their whole lives.

    The older I get, the more convinced I am that we are far better off by doing things the way the Good Lord says in the book He wrote for us. Believe it or not, He has quite a bit to say about money, possessions and finances!

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  4. My mom, my aunt, and I were JUST discussing this morning how insane the prices are for a new truck. When I was growing up, my dad would buy a new truck but keep it for 15 years. I was telling them that if he were alive now it would be time for a new truck, but I'm not sure he would pay these prices for one. I hope the person can sell it.

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  5. It used to be that you could purchase a decent used vehicle for a reasonable price as well. Three year old trucks around here are $50K and have 150K miles on them. I was ready to replace one of two 18 year old vehicles in order to get something a little more dependable.....while the one only had 105K miles on it, it had had NOTHING repaired on it so I knew all those ankle biters were heading my way.

    I ended up with a 2015 Cherokee with a little over 50K miles for around $23K. Not thrilled with it, but it was about the best I could find after searching for several months. I'm in a snow belt and am uncomfortable with a compact car. Also driving a car with tons of miles requires a list of people to car in case I need help...I'm a little short on personnel right now.

    That all said...my gentleman friend has one of those fancy trucks. It used to be a truck was for farmers and constructions workers...utility. They wouldn't cost so much if they did not have all the gadgets...but the heat seat is wonderful on my sore back right now. :) His employer gives him a vehicle allowance plus insurance. I think he's only about $100 a month out of pocket.

    If a company would promote a more standard line of vehicles, I think they would do quite well.

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  6. Perfect for towing your deluxe tiny house (at 13 mpg) to parts unknown when shtf! It will tow a whole lot!

    Also perfect for hauling your newly purchased horses and cows to your newly purchased 20 acre ranch somewhere out west. I had to throw that in because of some people I met who had bought a " ranch ". When you know farmers, who call themselves farmers, who have not just crops but a lot of livestock on thousands of acres, the new Era " ranchers" are a hoot to listen to ! The farmers are usually quiet, faithful in church attendance and giving, and are part of the backbone of small communities. They worked hard to get what they got. The newer folks, who knows. Here today gone tomorrow probably, like their new trucks.

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    1. Yup, a lot of farmers and ranchers are happy to get the extra big ones since they can write it off as a business expense.

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  7. FYI, there is a new interesting picture of you (not you) when I type in the name of your blog on Google to get to your blog. I have been a reader of your blog for a long time. The picture has your credentials listed, but it is not you. Keep up the good work...

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    1. I believe the lady whose photo you saw is an attorney in Virginia. Poor dear, to get linked with my writing! Oddly enough, we even have the same middle initial. I'm not surprised Google mixed us up.

      - Patrice

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  8. This sort of listing is exactly why we endeavor to make our vehicles last as long as they can. Fortunately we do not drive a great deal either, which is helpful.

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  9. The truck market is warped nowadays because CAFE standards for gas "efficiency" force the automobile dealers to make them bigger and bigger. Small trucks are no longer made as they would have to have something like 40+ mpg to be legal.

    Also, the loan payment is a terrible burden nowadays. A dealer will roll your half paid vehicle loan that you're trading in into your new vehicle loan. You pay a monster monthly bill instead that doesn't have true collateral, so your interest rate is even higher. It's a mess! And all in the ungodly name of glory and pride.

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    1. People pass by my place and stop to ask can they buy my OLD small truck all the time. And no matter how many times I say No, the ones I know keep checking back trying again. I figure at today's prices, it's probably worth about what I paid for it 2 decades ago.
      I see the wheels turning in people's heads. They're all thinking maybe they can get it dirt cheap. It runs, gets great mileage, and it's a truck. Not something to part with!

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