18 Dealerships Hit ROCK BOTTOM Sales

[BigD]

This was an interesting YouTube video. I first thought here we go with a bogus YouTube video, but a quick check of the info using my ChatGPT app surprisingly verified the stories. Although I would assume if the Ford Corporation ever got close to closing that the US government would bail them out ............... wait didn't we already do that once?

I feel for sorry for the Automotive dealerships in smaller communities across the country. In the small community that I grew up in, in Southeastern Iowa I saw two car dealerships close their doors. The owner's had kid's that I went to high school with. I went back for a visit about a year and a half ago and that little town that used to be about 2500 is like a ghost town. In its hay day many years ago it was quite a hub for the railroad. They even had a turntable and a roundhouse where locomotives could come in a be turned around to head back the opposite directions.

Here's the YouTube link on the 18 dealerships hitting rock bottom ......................

 

[guffus]

A lot of good info in the video about why car dealerships are failing. Thanks for posting.

 

[MelroseHawkins]

The gov bailed GM out in 2008-2009. Moneywise, everything seems to be coming to a head now like the proverbial bubble is popping. Auto industry, college sports playing players millions, the general economy and inflation, pro sports outrageous salaries which plays into outrageous ticket prices. It's just everything and now everything is becoming unaffordable for most. When is going to stop!!??? The bubble is bursting.

The greed for $$$ is just wrecking the foundation of people's lives. Then you throw gambling into the picture and it's so destructive. Greed and $$$ is not a good mixture.

 

[guffus]

The gov bailed GM out in 2008-2009. Moneywise, everything seems to be coming to a head now like the proverbial bubble is popping. Auto industry, college sports playing players millions, the general economy and inflation, pro sports outrageous salaries which plays into outrageous ticket prices. It's just everything and now everything is becoming unaffordable for most. When is going to stop!!??? The bubble is bursting.

The greed for $$$ is just wrecking the foundation of people's lives. Then you throw gambling into the picture and it's so destructive. Greed and $$$ is not a good mixture.

Yeah there may be a debt bubble that is about to burst. It is kinda weird how so far consumers have not really cut their spending despite there being no money in their savings accounts.

 

[MelroseHawkins]

Yeah there may be a debt bubble that is about to burst. It is kinda weird how so far consumers have not really cut their spending despite there being no money in their savings accounts.

We are a society that has lost priorities. It's not going to end well. Makes me ill thinking my boys are just starting adulthood and what they will have to deal with the next several decades.

 

[haydensly]

This was an interesting YouTube video. I first thought here we go with a bogus YouTube video, but a quick check of the info using my ChatGPT app surprisingly verified the stories. Although I would assume if the Ford Corporation ever got close to closing that the US government would bail them out ............... wait didn't we already do that once?

I feel for sorry for the Automotive dealerships in smaller communities across the country. In the small community that I grew up in, in Southeastern Iowa I saw two car dealerships close their doors. The owner's had kid's that I went to high school with. I went back for a visit about a year and a half ago and that little town that used to be about 2500 is like a ghost town. In its hay day many years ago it was quite a hub for the railroad. They even had a turntable and a roundhouse where locomotives could come in a be turned around to head back the opposite directions.

Here's the YouTube link on the 18 dealerships hitting rock bottom ......................

This video is misleading at best, outright dishonest on some things. I retired from the finance arm of Ford Motor Company a few years ago after 30 years. I say that for some context and while I'm not an expert on everything contained in the 38 minutes, I am at least qualified to give an informed opinion on some of this.

My first reaction after watching this is, what is the main point of the whole thing? It goes from corporate greed to killing small town businesses to fraud. One thing I first want to point out is the title of the video, "Ford is Finished". Nowhere in that 38 minutes does the narrator talk about Ford failing or even struggling as a company. So right off the bat, misleading! And just to update them, in last week's quarterly financial announcement, Ford Motor gave guidance for $8.5-$10.5 billion in annual profit for 2026. And it's been around that for the last several years. Hardly sounds like a failing business. And BTW, Ford did not take any government bailout money in 2008-2009. GM and Chrysler did but in the case of Ford, it did not happen.

A lot of what is said in the video is indeed true but it really lacks proper context. For instance, it gives 19 examples of dealerships that have failed in the last 12-18 months (?) or something like that. Oh the horror! But that is probably in line with a typical year. This is not some recent phenomenon. Dealerships fail all the time.

I noticed that they kept bringing up how manufacturers forced inventory on them that they didn't want. It doesn't work that way. They do put pressure on dealerships to take inventory and there are negative trade-offs if they don't (for example, I won't give you a hot-selling model X unless you take 4 loser models off my hands). But dealers agree to buy inventory. It is not forced onto them.

One last example I wanted to bring up. Towards the end, #3 was the dealership in Maine that had been in business for 60 years. They owed $4.4 million in debt on $946,000 of inventory. There are two ways this happens: A) The bank is not auditing to make sure the dealer is paying off vehicles in a timely manner. Or B) there is a good possibility of the dealer committing fraud while not paying off vehicles as they are sold. This was not a greedy corporation forcing a small business out.

It never once in this video mentions that any of these dealerships were not properly managed as for the reason they went out of business. While it's unfortunate, this is all part of it. This is called capitalism, survival of the fittest.

I've seen you post several of these Youtube videos on auto manufacturers and dealers, and over supply. Again, while most of what they say is true it is very misleading. If I were you I'd find a new hobby that you can get a better use of your 38 minutes.

 

[BigD]

This video is misleading at best, outright dishonest on some things. I retired from the finance arm of Ford Motor Company a few years ago after 30 years. I say that for some context and while I'm not an expert on everything contained in the 38 minutes, I am at least qualified to give an informed opinion on some of this.

My first reaction after watching this is, what is the main point of the whole thing? It goes from corporate greed to killing small town businesses to fraud. One thing I first want to point out is the title of the video, "Ford is Finished". Nowhere in that 38 minutes does the narrator talk about Ford failing or even struggling as a company. So right off the bat, misleading! And just to update them, in last week's quarterly financial announcement, Ford Motor gave guidance for $8.5-$10.5 billion in annual profit for 2026. And it's been around that for the last several years. Hardly sounds like a failing business. And BTW, Ford did not take any government bailout money in 2008-2009. GM and Chrysler did but in the case of Ford, it did not happen.

A lot of what is said in the video is indeed true but it really lacks proper context. For instance, it gives 19 examples of dealerships that have failed in the last 12-18 months (?) or something like that. Oh the horror! But that is probably in line with a typical year. This is not some recent phenomenon. Dealerships fail all the time.

I noticed that they kept bringing up how manufacturers forced inventory on them that they didn't want. It doesn't work that way. They do put pressure on dealerships to take inventory and there are negative trade-offs if they don't (for example, I won't give you a hot-selling model X unless you take 4 loser models off my hands). But dealers agree to buy inventory. It is not forced onto them.

One last example I wanted to bring up. Towards the end, #3 was the dealership in Maine that had been in business for 60 years. They owed $4.4 million in debt on $946,000 of inventory. There are two ways this happens: A) The bank is not auditing to make sure the dealer is paying off vehicles in a timely manner. Or B) there is a good possibility of the dealer committing fraud while not paying off vehicles as they are sold. This was not a greedy corporation forcing a small business out.

It never once in this video mentions that any of these dealerships were not properly managed as for the reason they went out of business. While it's unfortunate, this is all part of it. This is called capitalism, survival of the fittest.

I've seen you post several of these Youtube videos on auto manufacturers and dealers, and over supply. Again, while most of what they say is true it is very misleading. If I were you I'd find a new hobby that you can get a better use of your 38 minutes.

Thanks for that personal insight. I knew the Ford part was bogus (click bait) and as you pointed they didn’t even talk about Ford. I hate it when YouTube people do that and they do it a lot with bogus titles to grab people’s attention.

Also I am guessing there are hundreds of Ford dealerships across the United States. So if a few go under it is not the end of the world.

My biggest concern is the high cost of new cars right now. I saw on the news just yesterday that the average cost of vehicle has increased around $800 dollars just this year and approaching $52,000. That’s insane for an average cost of a vehicle.

I’ve been out here in Utah now for almost ten years and I have noticed that in the last three years people are not driving as many brand new vehicles like they were when we first moved here. Of course home prices have nearly doubled out here since we bought our home. I thought it was insane that our home that we bought new in 2017 was $410k and now is selling for $750k. One thing that is becoming very common is for people who buy new homes out here is for them to rent out there basement’s to help make their homes more affordable. Maybe that has a lot to do with people keeping their cars longer.

Also when we bought our home in 2017 homes (new or used) going up on the market at that time we’re being sold the day of their listing on MLS. We are now seeing homes setting for sale that are not moving. Likely the higher interest rates on mortgages has a lot to do with that.

I know Trump is wanting the FED to drop interest rates down which will be good and bad at the same time. Dropping them will make payments easier on buying a home but at the same time cause significant inflation across the board. That includes the price of cars, trucks and homes. I am already seeing prices sticker prices exceeding over $100,000 on some new pickup trucks………. Including Ford Raptors. I see those as high as $125,000. That’s as insane as the eight to nine year car loans now that are used to keep monthly payments down to an affordable range. This is how so many people are under water on what people owe on their loans and the actual value of their cars and trucks.

I am currently considering buying a new vehicle so that is why I am following the markets and YouTube videos on the different features on the new cars coming out. So I come across some of these videos and just watch them to get a feel for what’s going on in the home and auto prices.

You will note that I did point out the “Ford click bait” part of that video.

 

[haydensly]

Thanks for that personal insight. I knew the Ford part was bogus (click bait) and as you pointed they didn’t even talk about Ford. I hate it when YouTube people do that and they do it a lot with bogus titles to grab people’s attention.

Also I am guessing there are hundreds of Ford dealerships across the United States. So if a few go under it is not the end of the world.

My biggest concern is the high cost of new cars right now. I saw on the news just yesterday that the average cost of vehicle has increased around $800 dollars just this year and approaching $52,000. That’s insane for an average cost of a vehicle.

I’ve been out here in Utah now for almost ten years and I have noticed that in the last three years people are not driving as many brand new vehicles like they were when we first moved here. Of course home prices have nearly doubled out here since we bought our home. I thought it was insane that our home that we bought new in 2017 was $410k and now is selling for $750k. One thing that is becoming very common is for people who buy new homes out here is for them to rent out there basement’s to help make their homes more affordable. Maybe that has a lot to do with people keeping their cars longer.

Also when we bought our home in 2017 homes (new or used) going up on the market at that time we’re being sold the day of their listing on MLS. We are now seeing homes setting for sale that are not moving. Likely the higher interest rates on mortgages has a lot to do with that.

I know Trump is wanting the FED to drop interest rates down which will be good and bad at the same time. Dropping them will make payments easier on buying a home but at the same time cause significant inflation across the board. That includes the price of cars, trucks and homes. I am already seeing prices sticker prices exceeding over $100,000 on some new pickup trucks………. Including Ford Raptors. I see those as high as $125,000. That’s as insane as the eight to nine year car loans now that are used to keep monthly payments down to an affordable range. This is how so many people are under water on what people owe on their loans and the actual value of their cars and trucks.

I am currently considering buying a new vehicle so that is why I am following the markets and YouTube videos on the different features on the new cars coming out. So I come across some of these videos and just watch them to get a feel for what’s going on in the home and auto prices.

You will note that I did point out the “Ford click bait” part of that video.

The high cost of new vehicles is a big concern. The dealerships that I talked to a few years ago were already concerned and it has only gotten worse. The car manufacturers are still making money. They have shifted away from smaller, less profitable vehicles to higher end SUV's and pickups where the margins are higher. And the economy is becoming one of the haves and the have nots, unfortunately. The average person cannot afford a new vehicle any more.

And you mention home prices, that has gotten even worse, especially for people starting out. And the Fed dropping rates may not help mortgage rates. Those rates mirror 10-year Treasury bills and if inflation is increasing, so will the rate on those.

Good luck in searching for a new vehicle. There are a lot of quality products out there, it's just that they cost a lot! I will say that I have been buying Fords for years and have never had any major problems, and very few minor ones. I will acknowledge that the recalls are frustrating. But other manufacturers make good vehicles as well and I will leave it up to you to decide what is in your best interest. You could save some money by buying late model used; if so I recommend a Certified Pre-Owned and make sure it is certified by the manufacturer. Best of luck!

 

[BigD]

The high cost of new vehicles is a big concern. The dealerships that I talked to a few years ago were already concerned and it has only gotten worse. The car manufacturers are still making money. They have shifted away from smaller, less profitable vehicles to higher end SUV's and pickups where the margins are higher. And the economy is becoming one of the haves and the have nots, unfortunately. The average person cannot afford a new vehicle any more.

And you mention home prices, that has gotten even worse, especially for people starting out. And the Fed dropping rates may not help mortgage rates. Those rates mirror 10-year Treasury bills and if inflation is increasing, so will the rate on those.

Good luck in searching for a new vehicle. There are a lot of quality products out there, it's just that they cost a lot! I will say that I have been buying Fords for years and have never had any major problems, and very few minor ones. I will acknowledge that the recalls are frustrating. But other manufacturers make good vehicles as well and I will leave it up to you to decide what is in your best interest. You could save some money by buying late model used; if so I recommend a Certified Pre-Owned and make sure it is certified by the manufacturer. Best of luck!

Interesting that you bring up the certified pre-owned option. I have considered doing just that and this is one way to avoid the huge value drop felt when driving of the car lot in a new vehicle. The biggest loss in the value of a new car is in the first two or three years of ownership.

One thing that is starting to happen is future shoppers are going to three to four year leases that have been dropping in monthly cost. Many of the certified cars are coming from this source. I’ve seen tv commercials on some makes and models below $300 a month for the length of the lease agreement.

It’s not that bad of a way to go. Get to drive a new vehicle for three to five years on a lease and then just walk away from the car. Sometimes dealerships will give a person a good deal on buying the car after your lease agreement expires. You could end up saving thousands on the depreciation that people who buy the car new incur. This is an option I am considering along with the pre certified option.

What I have done in the past is buy new vehicles and keep them maintained for ten to fifteen years. The wife is driving a newer car but I am driving a 2011 Honda CRV that we bought new. It still runs great. I have read where that year, make, and model are well known to go between 250k to 300k miles. Mine has always been well maintained and kept in a garage every night. It only has 114k miles on it. Recently I looked underneath the car to see how much rust I was dealing with. I was shocked to find no rust. We do have a car wash membership for both cars and we are religious when the winter rolls around to keep the road salts off of the cars during the winter time. When we go to buy new tires the tire shop mechanics are always impressed with how clean our cars are.

I am tempted to just give the dealership’s the finger and stay with my Honda. Yes eventually the fuel pump, oil pump, water pump, and a few other minor repairs will need to be done, but that cost will minor compared in comparison to buying a new car and paying between $50k to $60k for a new one……… not to mention the increase in insurance premiums.

 

[MelroseHawkins]

The high cost of new vehicles is a big concern. The dealerships that I talked to a few years ago were already concerned and it has only gotten worse. The car manufacturers are still making money. They have shifted away from smaller, less profitable vehicles to higher end SUV's and pickups where the margins are higher. And the economy is becoming one of the haves and the have nots, unfortunately. The average person cannot afford a new vehicle any more.

And you mention home prices, that has gotten even worse, especially for people starting out. And the Fed dropping rates may not help mortgage rates. Those rates mirror 10-year Treasury bills and if inflation is increasing, so will the rate on those.

Good luck in searching for a new vehicle. There are a lot of quality products out there, it's just that they cost a lot! I will say that I have been buying Fords for years and have never had any major problems, and very few minor ones. I will acknowledge that the recalls are frustrating. But other manufacturers make good vehicles as well and I will leave it up to you to decide what is in your best interest. You could save some money by buying late model used; if so I recommend a Certified Pre-Owned and make sure it is certified by the manufacturer. Best of luck!

I don't mind the minor issues or repairs as that is expected. It's the major ones especially after paying the high upfront prices now.

I had a 5 yr old Subaru Outback several years ago that the CVT tranny chucked out on it. I was quoted over $8,000 for a new tranny to be installed. It was a 2018 and I think I had my issues in 2024. This was even before the recent increase in price of the new cars.

To be honest, I look around and am surprised how many trucks I see still driving around with what they cost. It used to be pretty much farmers or those in need would drive trucks, but now just everyday people seem to have them as personal vehicles. Many people don't need them but now the manufacturers are building them as the main vehicles for families and with all the luxuries. It's fine, but it raises the costs.

I can't believe that many people are paying $80,000 - 90,000 for a truck, when they could get by without them. I understand certain individuals need them for their work or hauling stuff often or pulling trailers, boats, etc..

 

[MelroseHawkins]

Interesting that you bring up the certified pre-owned option. I have considered doing just that and this is one way to avoid the huge value drop felt when driving of the car lot in a new vehicle. The biggest loss in the value of a new car is in the first two or three years of ownership.

One thing that is starting to happen is future shoppers are going to three to four year leases that have been dropping in monthly cost. Many of the certified cars are coming from this source. I’ve seen tv commercials on some makes and models below $300 a month for the length of the lease agreement.

It’s not that bad of a way to go. Get to drive a new vehicle for three to five years on a lease and then just walk away from the car. Sometimes dealerships will give a person a good deal on buying the car after your lease agreement expires. You could end up saving thousands on the depreciation that people who buy the car new incur. This is an option I am considering along with the pre certified option.

What I have done in the past is buy new vehicles and keep them maintained for ten to fifteen years. The wife is driving a newer car but I am driving a 2011 Honda CRV that we bought new. It still runs great. I have read where that year, make, and model are well known to go between 250k to 300k miles. Mine has always been well maintained and kept in a garage every night. It only has 114k miles on it. Recently I looked underneath the car to see how much rust I was dealing with. I was shocked to find no rust. We do have a car wash membership for both cars and we are religious when the winter rolls around to keep the road salts off of the cars during the winter time. When we go to buy new tires the tire shop mechanics are always impressed with how clean our cars are.

I am tempted to just give the dealership’s the finger and stay with my Honda. Yes eventually the fuel pump, oil pump, water pump, and a few other minor repairs will need to be done, but that cost will minor compared in comparison to buying a new car and paying between $50k to $60k for a new one……… not to mention the increase in insurance premiums.

I always find this funny with people who have an older vehicle get nervous when components start to go bad and they say it is "nickle and diming" me. Throwing a couple hundred $$ part in every once-in-awhile is not bad. I guess some would rather continue to pay the $550 monthly auto note. It's like do the math people. In 3 months you are comparing $1,650 over 3 months compared to a $350 alternator. C'mon.

This is getting even more true as the new prices are higher creating higher monthly payments. Hell, now they are doing 8 yr auto loans and probably even more years.

 

[MelroseHawkins]

Lol. I just checked our local Ford dealership and I just noticed that Ford doesn't even make a sedan anymore.

 

[haydensly]

Lol. I just checked our local Ford dealership and I just noticed that Ford doesn't even make a sedan anymore.

Nope. That has been the case for several years. The only "car" they make is the Mustang.

 

[MelroseHawkins]

Even auto repairs are getting expensive. Standard four rotor and brake pads now coming in over $700. May have to go back to doing myself like when younger.

 

[Westernhawk]

I don't mind the minor issues or repairs as that is expected. It's the major ones especially after paying the high upfront prices now.

I had a 5 yr old Subaru Outback several years ago that the CVT tranny chucked out on it. I was quoted over $8,000 for a new tranny to be installed. It was a 2018 and I think I had my issues in 2024. This was even before the recent increase in price of the new cars.

To be honest, I look around and am surprised how many trucks I see still driving around with what they cost. It used to be pretty much farmers or those in need would drive trucks, but now just everyday people seem to have them as personal vehicles. Many people don't need them but now the manufacturers are building them as the main vehicles for families and with all the luxuries. It's fine, but it raises the costs.

I can't believe that many people are paying $80,000 - 90,000 for a truck, when they could get by without them. I understand certain individuals need them for their work or hauling stuff often or pulling trailers, boats, etc..

I agree. I'm amazed at the amount of $80-$90K pickemup trucks out there. I was in Texas a few weeks ago and it seemed like everyone had one. People see those that drive $90K german cars as snooty, but these chevys and fords cost that much. I can't imagine filling one of those up if gas stays expensive, or gets even more expensive.

 

[BigD]

I always find this funny with people who have an older vehicle get nervous when components start to go bad and they say it is "nickle and diming" me. Throwing a couple hundred $$ part in every once-in-awhile is not bad. I guess some would rather continue to pay the $550 monthly auto note. It's like do the math people. In 3 months you are comparing $1,650 over 3 months compared to a $350 alternator. C'mon.

This is getting even more true as the new prices are higher creating higher monthly payments. Hell, now they are doing 8 yr auto loans and probably even more years.

Exactly, couldn’t agree more. I’m in my mid sixties so I am thinking one more new vehicle should be my last, especially the way we take care of our cars. I bought my wife a new Mazda cx-5 in 2022. She loves that car. I may get me a 2027 Mazda cx-5 when the hybrids come out. Until gas went up I was considering getting a crew cab pickup. Likely a Ford F-150 or Toyota.Tundra. Those run from about $75k to $125k. Then I thought the hell with that. If I need a truck I’ll just rent one for a day.

 

[MelroseHawkins]

Exactly, couldn’t agree more. I’m in my mid sixties so I am thinking one more new vehicle should be my last, especially the way we take care of our cars. I bought my wife a new Mazda cx-5 in 2022. She loves that car. I may get me a 2027 Mazda cx-5 when the hybrids come out. Until gas went up I was considering getting a crew cab pickup. Likely a Ford F-150 or Toyota.Tundra. Those run from about $75k to $125k. Then I thought the hell with that. If I need a truck I’ll just rent one for a day.

One difference though. I presume you and your wife have over the years saved up a really nice retirement preparing to be able to do this. This is not the case with young people and most people in mid life when still paying for children, their college and/or home. I'm completely fine with a retiree or one around that age who have saved up for decades treating themselves to a new vehicle, which most likely pay cash for.

It's the younger people who have been paying on car notes their entire lives where it really hurts. It's the proverbial anchor. Unfortunately, now it has just become standard to include this crap in your family budget. I'm guilty of it to but as I get older am working to end that.

I've been working since I was 15 yrs old, pretty much and which is about 39yrs. I over the years have banked a pretty nice retirement. I plan on working another 6 or so year. I'm not wealthy until that day comes and I can pull from my retirement. In lieu of that, it's better not to cave into the debts with auto loans, etc.. But after, I'll be like you where I can treat ourselves with a new vehicle for cash if we wish.

They still sell Buick Riviera's!?

 

[BigD]

One difference though. I presume you and your wife have over the years saved up a really nice retirement preparing to be able to do this. This is not the case with young people and most people in mid life when still paying for children, their college and/or home. I'm completely fine with a retiree or one around that age who have saved up for decades treating themselves to a new vehicle, which most likely pay cash for.

It's the younger people who have been paying on car notes their entire lives where it really hurts. It's the proverbial anchor. Unfortunately, now it has just become standard to include this crap in your family budget. I'm guilty of it to but as I get older am working to end that.

I've been working since I was 15 yrs old, pretty much and which is about 39yrs. I over the years have banked a pretty nice retirement. I plan on working another 6 or so year. I'm not wealthy until that day comes and I can pull from my retirement. In lieu of that, it's better not to cave into the debts with auto loans, etc.. But after, I'll be like you where I can treat ourselves with a new vehicle for cash if we wish.

They still sell Buick Riviera's!?

It’s too funny as I sit on my front porch and watch these 28 to 35 year olds with their BYU degrees driving by in their lifted pickup trucks that I know are near $100k in price , and parking in their $850k homes next to their speed boats.

The guy who set up our retirement plans lives just down the street from us and I asked them how do they afford all these things. He tells me they can’t. They are maxed out. He has talked to many of them and he says the first rainy day and they are in serious trouble. He knows having looked over our 401k’s and our immediate cash availability, and tells us that we are in good shape in comparison to these young families around us.

I think they need to go back to BYU and take some finance classes. He personally knows that they have put enormous stress on their marriages and there already have been several divorces in our neighborhood.

I have a close friend who lives just a couple of houses over from me. He is in his early fifties, but his wife is about ten years younger and always expected a lot. They pay a house keeper to clean their house, and at one point were also paying for a nanny to cook for their four kids, do their laundry, and even help bath their two youngest children.

How did this end up? They just got divorced after about 18 years of marriage. There are several families in our subdivision living the exact same
way of life.

Since it is so dry out here in Utah I guess they don’t think about rainy days.

 

[MelroseHawkins]

It’s too funny as I sit on my front porch and watch these 28 to 35 year olds with their BYU degrees driving by in their lifted pickup trucks that I know are near $100k in price , and parking in their $850k homes next to their speed boats.

The guy who set up our retirement plans lives just down the street from us and I asked them how do they afford all these things. He tells me they can’t. They are maxed out. He has talked to many of them and he says the first rainy day and they are in serious trouble. He knows having looked over our 401k’s and our immediate cash availability, and tells us that we are in good shape in comparison to these young families around us.

I think they need to go back to BYU and take some finance classes. He personally knows that they have put enormous stress on their marriages and there already have been several divorces in our neighborhood.

I have a close friend who lives just a couple of houses over from me. He is in his early fifties, but his wife is about ten years younger and always expected a lot. They pay a house keeper to clean their house, and at one point were also paying for a nanny to cook for their four kids, do their laundry, and even help bath their two youngest children.

How did this end up? They just got divorced after about 18 years of marriage. There are several families in our subdivision living the exact same
way of life.

Since it is so dry out here in Utah I guess they don’t think about rainy days.

It's all about keeping up with the Smith's. It's pathetic. Funny thing when I go back home to the small town I grew up in, I don't see the vainness as much. It's still there with some but it's not at the level where I live now, which is an affluent area with a younger average household age.

 

[Westernhawk]

It’s too funny as I sit on my front porch and watch these 28 to 35 year olds with their BYU degrees driving by in their lifted pickup trucks that I know are near $100k in price , and parking in their $850k homes next to their speed boats.

The guy who set up our retirement plans lives just down the street from us and I asked them how do they afford all these things. He tells me they can’t. They are maxed out. He has talked to many of them and he says the first rainy day and they are in serious trouble. He knows having looked over our 401k’s and our immediate cash availability, and tells us that we are in good shape in comparison to these young families around us.

I think they need to go back to BYU and take some finance classes. He personally knows that they have put enormous stress on their marriages and there already have been several divorces in our neighborhood.

I have a close friend who lives just a couple of houses over from me. He is in his early fifties, but his wife is about ten years younger and always expected a lot. They pay a house keeper to clean their house, and at one point were also paying for a nanny to cook for their four kids, do their laundry, and even help bath their two youngest children.

How did this end up? They just got divorced after about 18 years of marriage. There are several families in our subdivision living the exact same
way of life.

Since it is so dry out here in Utah I guess they don’t think about rainy days.

Wow. I guess a lot of people are living beyond their means. Also, your financial guy has some professional boundary issues