This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Don’t let appearances fool you; tricks are for kids
How do your bank account and debt-to-income ratio look, though?
If you’re driving a six-figure car but don’t even have six figures in the bank, what are you doing?
The same logic applies to those who are driving five-figure cars. If your car is worth $30,000 – $50,000, do you have that same amount of cash in the bank or your investment accounts?
One of the first rules of engagement when buying a car is: if you can’t buy the car with cash, walk away. It doesn’t mean you have to buy the car with cash, but it is prudent only to buy a car if you have that amount of cash available.
Don’t Let Appearances Fool You
Nice cars are appreciated.
They feel good.
Look good.
Smell good.
Drive good.
Nice cars are the
And when your significant other or dating partner has a nice ride, it can instill confidence or blind you to their actual financial situation.
A nice car does not equate a nice bank account or healthy financial habits.
Previous dating partners had nice rides but were up to their knees in debt, or their savings and investment accounts looked relatively low compared to the price of the nice ride they were driving around.
Living Below Their Means
One person I dated a long time ago asked me if I cared about the type of car they drove. I always remembered this question they asked; it left a positive impression on me.
They didn’t believe in debt. And their car did look like shit, but it was respectable.
They paid their way through school, they paid for their car in cash, and they lived well below their means.
Notice I said one person.
Others were tied up in appearances and focused on driving the latest and greatest.
Car Note = Half Their Monthly Income
One person maintained a car payment equal to almost half of their monthly income.
No.
Just no.
Because their monthly car note cannibalized a large percentage of their monthly income, they were always strapped and didn’t have much room to do much else – except drive that luxury car.
Which also meant they weren’t saving or investing any income.
85% Of Americans Have A Car Payment
Too often, cars are a detriment to your finances.
Over 85% of Americans have a car payment.
Most people who have one barely have any savings in the bank.
85% Of Americans Have Car Payments
So people are willing to choose a nice ride over having cash in the bank, which makes no sense! Let’s rethink how we approach cars.
The best thing you can do for your finances is hold off on buying the car and hold on to your investments and healthy financial habits.
If you have to buy a car, buy one that you can afford, don’t buy a car that you can only afford because it has a financing option.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.