I don’t disagree that people spend too much money on their car, but I disagree that this is the real reason people are broke. I don’t have a car payment, and I’m broke, so I’m either an exception to the rule or the rule is not true.
Back when I was a car salesman, I can tell you that a lot of people came in upside down on their trades (owe more on the loan than the car is worth) and would want to trade just because of that. The car was in good condition, they were just “tired” of it, knew they were upside down and wanted to trade to a flashier model.
If you’re constantly broke and can’t figure out why, the answer may be sitting in your driveway.
Americans are spending more on their vehicles than ever before — about $8,600 a year on average — and it’s driving some to the breaking point.
Credit counselor Bill Thompson of Jacksonville, Fla., estimates that one out of every four clients his agency sees has overspent — sometimes dramatically — on a car.
Read more at articles.moneycentral.msn.com