Millennials And Expensive Cars

There seems to be a growing fad amongst my fellow millennials; buying expensive cars. I see it every day. 23 year olds driving around in brand new Camaros, Mustangs, and giant pick-up trucks. I want to define what I believe “expensive” means for fresh millennials. Before a millennial becomes a self-sustaining adult, he needs to have a place to live that is not his parents’ house. Most millennials are able to pull this off at a generally young age with the use of having a roommate, or in most cases, multiple roommates. I do not consider this self-sustaining because as soon as the roommates leave, you can no longer afford it. You are still reliant on others to endure your living. I think the big lapse in millennial judgement comes from this. Living with roommates or multiple roommates has become the norm. This is due to the massive increase in rent costs nationwide, while wages have indeed risen and millennials are making more money, they do not realize they are being tricked by what I am going to call, “the roommate fallacy”. When you add 2 roommates and slash rent payments by 66%, you can trick yourself into believing you are making “good money”. So what does the millennial do? Buy a new Camaro. This is a self-defeating action. In the millennial’s brain, he’s made a good purchase. This is a car he can “afford”. Why? Because of the roommates. This car is simply too expensive because he can’t even afford a place to live. If he were to have to pay the entirety of the household bills, such as, full rent, electric, water, internet, all by himself, he’d be broke in two weeks. To be able to purchase a car that isn’t too expensive, a millennial must be able to first cover his own housing and food. Renting or leasing with roommates isn’t a bad thing, and that’s not the point I’m trying to make, but when a millennial enters such an agreement, this is prime time to start gearing up to be self-sustaining. Instead of spending all the extra money on a depreciating asset, this should be the time to save, build a foundation, and get ready to become a self-sustaining adult. Many millennials claim they can’t buy a house simply because of student debt. While student debt has indeed crippled the millennials and their home buying endeavors, the purchase of elaborate expensive vehicles is delaying the process even further.

Sources:

https://www.businessinsider.com/millennials-delaying-homeownership-student-loan-debt-2019-9

https://www.businessinsider.com/average-american-millennial-net-worth-student-loan-debt-savings-habits-2019-6#american-millennials-have-an-average-net-worth-of-less-than-8000-meaning-theyre-financially-worse-off-than-any-other-generation-before-them-2

Patreon.com/millennialboomer

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