I’m Not Jealous of Your Lexus
October 25, 2007 – 11:36 amWelcome to Working For Financial Freedom. If this is your first visit please read about this blog. You can keep updated by subscribing by email or to my RSS feed. Thanks for visiting!
A couple weeks ago I was at the salon getting my hair cut by Javier (*name changed to protect the innocent). It had been a couple of months since I had been in for a trim so we we updated each other on what we’ve been doing. He told me about his new car. A 4 door Lexxus SUV. Used though, either a 2003 or 2004. It seems his previous car, a Jaguar, had been rear-ended four times in four months. He thought it was time to move on (and I kind of don’t blame him, I mean really, 4 times in 4 months?). So he traded in his car for a Lexus.
But the line that got me was ,”Yeah, I didn’t think I would get financed for it because I was so upside down on the other car. But they approved me so I got it.”
Inwardly I groaned.
So back to the story of his 4 accidents in 4 months. It turns out his most recent and last incident he was hit by a Saturn. The owner of the Saturn jumped out and looked very worried that he rear ended my hair stylists Jaguar. Javier remarked that the guy probably didn’t have a lot of money, because, although it was clean and looked either brand new or freshly washed, the driver only had a Saturn.
My hair stylist made the assumption that less expensive car = not wealthy and a nice car = wealthy.
And I have to admit, before the 180 I’ve had this year regarding finances I would have made the same assumption. But from everything I’ve learned this year and seeing the flip side of the story I realize that many people with nice cars are probably financing that luxury and don’t really have wealth. Just the appearance of it. And my hairstylist is a perfect example of that; A man with a financed Lexus that he traded in his upside-down Jaguar for. For all we know the guy with the Saturn could have financed his car too, but it could very well be paid off. Who is in the better financial situation then?
Are you guilty of the same assumptions? Would you assume that the driver of a brand-new expensive car had a lot of money?
13 Responses to “I’m Not Jealous of Your Lexus”
I used to think a corworker of my husband’s was loaded because her and her husband had nice cars, a condo and were always going on vacations and buying the latest gadgets.
Turns out that’s not the case at all, they’re on their second mortgage and she asked my husband how to take money out of her savings fund (retirement account) because she needs to pay her bills.
Now I think differently about people who have it all
By Jackie on Oct 25, 2007
Dang… I thought Saturns were nice cars! I live in a different financial reality than your hair stylist
By paidtwice on Oct 25, 2007
Paidtwice,
You and me both!
Jackie,
Same here. I don’t automatically assume that the brand new “fill in the blank” means someone is doing well. It might just mean they approved for a car loan.
By Momof3 on Oct 25, 2007
What a great point. I think my first assumption would be the same, but when I actually think about it, I know that isn’t true and know lots of living examples. Thanks for making me think
By boogiemum on Oct 25, 2007
I thought like that when I was younger but not since I have been living frugally.
By Heather on Oct 25, 2007
Nothing wrong with financing, just not a lexus!! A good reliable car with a good down payment is OK!
By OUR DEBT on Oct 28, 2007
Our Debt,
It really depends on what a person’s financial goals are. Our goal is to be debt-free, invest our money for an early retirement, and have money to spend on other things. If we can pay cash for a car I’d rather do that, and use the money that would have been going towards a car payment for investing and fun!
We pay $891 a month total for our vehicles. Just imagine what you could do with an extra $900 a month? Think of the returns the money would earn if you invested that money in a 401k or mutual fund.
By Momof3 on Oct 28, 2007
Appearances can be deceiving. I lived in Highlands Ranch, CO for three and a half years. Luxury cars abound.
The average household income in Highlands Ranch is about $97,000. But the city also has high rates of bankruptcy and foreclosure.
By Ryan Healy on Oct 31, 2007
Depends. Why? Because what if the Lexus driver can easily afford the car? I am of the mindset the person can afford it becaues MOST people I know who drive fancy cars can afford it.
I realize I have affluent friends and family, my cousin bought a Corvette. He’s 35 and single, military officer! He’s loaded, what else does he spend his money on? His younger brother same thing, except a mustang shelby. These guys obviously make close to $80k/year, housing paid, etc.
And friends who are buying z350, porshe, infinity sports car. I know they make above 6 figures and I think well good for them. By the way they buy me dinner usually. But seriously I’m happy they are successful. They work really hard for their money.
I also realize there are those not like that. But heck unless you open their checkbooks you don’t know what they make. I know what my friends make because we’re all professionals in similar fields so we make the same. Plus they don’t own houses, they rent. We discuss about debt being bad, and how to best maximize our 401k/IRAs. I don’t think people not investing would be discussing choices, but I could be way off base.
So be happy for some people.
By Livingalmostlarge on Nov 26, 2007
I live in a city with a lot of what I term “fake people”. A lot of BMW 3-series and Lexus drivers who work the same mindless office jobs as everyone else, only they go about it with an inflated ego.
I won’t lie, I myself lusted after a certain BMW roadster for a long time (I probably still do), but I wasn’t seeking the brand name, I just liked the car on its own merits. The irritating Canadian winters make convertibles rather unattractive, and all the drivers are deaf, blind and stupid in this government city, so I still drive my cheap little Ford, which serves me well despite being a Ford.
I do know of a few people who can afford the fancy cars; self-made millionaires who have sacrificed many things to be where they are today. They couldn’t care less about status symbols, for them it’s all about the toys. I think that’s a healthy attitude, when you work hard you should reap the rewards.
By Bill on Dec 2, 2007
When I see people driving new cars, and too broke to deal with their basic obligations, that’s their issue, and that’s where their treasure is. I’m no longer impressed with financed anything; Unless a person can pay outright cash for any type vehicle, then you’re saying something.
By lydia on Jan 25, 2008
lol! I bought a Mercedes SUV and everyone SWEARS I AM FILTHY RICH. I Paid $17,000 for it! The dealear gave me almost $6500 off the sticker. The UPPER MODELS go for over 80 grand.
I love my teasy cedes………………lol
By DESTINY on Feb 26, 2008
Congratulations to You, and may God Bless You; You are one in a million. May you enjoy the fruit of your labor.
By lydia on Feb 27, 2008