Americans’ love affair with pickup trucks might be derailing their retirement plans, writes awealthofcs: (OPINION)
The Wall Street Journal recently shared the story of a couple who is struggling because the pandemic has upended their jobs and income. To make matters worse, they’re dealing with a massive amount of consumer debt.“The Denton, Texas, couple pay $4,400 a month on their mortgage, four car loans and leases, and student debt, Ms. Scott-White said. Minimum required monthly credit-card payments total about $700. The debt was manageable pre-pandemic, she said.
After doing some digging, it’s no surprise I see so many Ford F-Series trucks on the road. It’s been the best-selling vehicle in the United States for 39 straight years. That’s more than 13.2 million new pickups sold from 2013-2019, and these are only the most popular models. Truck poor For a 60-month loan at 4%, that’s a monthly payment in the $800-$1,300 range, depending on your down payment. And these numbers don’t include extras like gas or insurance. That’s a lot of money for a truck if you’re not regularly using it on the job.Some people simply don’t make enough money. Others are bogged down with student loans. And then there are those who have seen their careers or businesses upended by the 2009 financial crisis and 2020 pandemic.
Spending priorities I know I shouldn’t judge other people’s spending habits, but I’m constantly looking at decked-out trucks and SUVs on the road and thinking to myself, “I wonder if that person maxes out their 401?” Or: “Do they have an emergency fund set up because you can’t spend that Land Rover in a pinch?”
It’s also true that the good feelings you get from buying a more expensive vehicle are fleeting. Researchers from the University of Michigan studied drivers of a BMW BMW, +0.62%, Honda HMC, -1.31% Accord and Ford Escort.
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