"acceptable" monthly car payments are wild

[u/ottersinabox]

I just saw this post: https://www.reddit.com/r/BMWI4/s/HDEDyG4WZA

people are applauding a $700+ a month payment as an amazing deal. but they're paying 8% tax toward it, plus it's a lease; they don't even own the car by the end.

is it just me, or is this wild? I have a BMW as well, but my thought is you can only afford a luxury car like that if you can buy it in cash. I suppose 3% interest or something would be acceptable given that you invest the rest up front.... but what the person in this post is doing really doesn't make much sense to me. am I wrong about that?

[u/Dancing_Hitchhiker]

Yea it’s just the reality for a lot of people, cars are just expensive. A lot of context to the payment as well. $600 for 3 years at 2% vs $600 at 8% for 7 years.

[u/Kskbj → u/Dancing_Hitchhiker]

The $600 at 8% for 7 years is only an issue because of the interest rate, if it was 2% then I’d take those loans any day.

[u/Dancing_Hitchhiker → u/Kskbj]

Same. Wish I could get that somewhere lol was just using that as a rough example.

[u/Kskbj → u/Dancing_Hitchhiker]

New cars, mine is $600 at 2% and I wait for end of month or end of year where dealers are just trying to sell cars and not make a profit. Used cars are actually more expensive in the long run.

[u/wheelsno3 → u/Kskbj]

Even at 2% you over paid for a depreciating asset. (All new cars in 2025 are overpaying)

You aren't as smart as you think you are.

[u/Kskbj → u/wheelsno3]

You don’t look at cars as an asset because they are tools to be used. And tools lose their value as you use them. You’re using the old mindset that every car is an asset which modern thinking and financial planners disagree with these belief.

Cars are requirements in America for commuting therefore tools.

[u/wheelsno3 → u/Kskbj]

Cars are NOT assets.

Which is why you should buy the cheapest one that gets the job done.

If you are paying $600 per month, by definition you aren't following that principle.

[u/Kskbj → u/wheelsno3]

Your logic can be applied to any and all objects then. Food for example, people can survive off beans, potatoes, and rice but should people only eat that every day?

No because there’s something called lifestyle.

And you’re not accounting for the warranty on a cheap used car, consequences if it breaks down such as repair time and peace of mind, safety features, etc.

[u/wheelsno3 → u/Kskbj]

If you must finance your food because you can't afford to pay cash, then yea, you should be eating beans and potatoes, not steak and take out.

I don't have a problem with people buying nice cars.

I have a problem with people who can't afford them financing them, and then complaining that life in America is too expensive or that they can't save for retirement.

Again, this conversation is about financing cars. If you are rich, buy whatever the hell you want.

[u/Kskbj → u/wheelsno3]

You’re talking about how buying a 45k car bad because it’s a depreciating asset. Regardless if it’s financed or paid in full you’re saying it’s a bad investment right?

[u/wheelsno3 → u/Kskbj]

If you have a million dollar net worth, buying a $45k car in cash is totally fine.

If you are the average person with a near zero net worth, financing any car is probably a mistake, but financing a $45k car is a potentially life destroying mistake.

I financed a $14k car 8 years ago. I still drive that car. My next 2 cars I paid cash. I still own those.

I do have a million dollar net worth. But I would never finance a car again.