A 22-year-old Reddit user recently sparked a conversation on r/personalfinance after sharing a tough lesson in car ownership costs. The young man said he financed a 2018 car for $15,000 and now pays $450 a month on the loan. But it’s the insurance bill that’s breaking him: $444 a month. Combined, that’s nearly $900 a month on a single vehicle.
High Costs, Low Flexibility
“I can afford this, but it takes half my paycheck,” he wrote. Making $20 an hour and paid biweekly, he lives at home with his parents to avoid rent. He admitted that this was “the worst financial decision” of his life.
He originally wanted to buy a used car in cash but said, “I had no choice but to finance a car” to get to work.
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Commenters quickly pointed out that while he may be making the payments, that doesn't mean he can truly afford the car. “If the car takes half of your paycheck then you can't afford it,” one person replied. Another echoed, “Just because you have money to pay for something doesn’t mean you can afford it.”
Insurance: The Real Budget Buster
Most Redditors zeroed in on the massive insurance cost, saying it’s “killing” him. Another added that paying $5,300 for insurance a year is “insane.”
Many encouraged him to immediately shop for better rates. “You aren’t married to your insurance,” one commenter advised. “Get 10 quotes today. Go with the cheapest, give them no loyalty. A couple weeks before your policy expires, shop around again. Do this every year.”
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Others suggested he join a parent's insurance plan. “I added my 18-year-old niece to my insurance and it didn’t even go up,” someone shared.
The original poster insisted he tried shopping around and that the $444 quote was the lowest he could find. Still, commenters pushed back: “You can definitely find a better deal than that by shopping around.”
Next Steps
Despite the financial strain, the young man is determined to dig himself out. “I won't [live with my parents until I'm 27],” he replied to one user. “I’m getting another job to pay it off as fast as I can.”
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Others recommended side hustles like DoorDash (NASDAQ:DASH) or Uber Eats to help cover the payments. One person even broke it down: “Set up automatic payments of $150 per week and you’ll manage to knock a year off those payments and probably barely notice.”
Several commenters shared their own painful experiences to remind him he's not alone. “I did the same thing when I was your age,” one wrote. “I also say it was the worst financial decision of my life, but it taught me a lesson and I recovered from it and you will too.”
“This may end up being the best thing that ever happened to you,” one person wrote. “A car is a depreciating tool. Look at it as a way to get from A to B and nothing more.”
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