 Car pmts up 40% (by BRAD 20,000 [IN]) Sep 4, 2024 2:45 AM
 Car pmts up 40% (by Ray-N-Pa [PA]) Sep 4, 2024 6:41 AM
Car pmts up 40% (by RB [TN]) Sep 4, 2024 7:05 AM
Car pmts up 40% (by Marv [IL]) Sep 4, 2024 8:24 AM
Car pmts up 40% (by 6x6 [TN]) Sep 4, 2024 8:42 AM
Car pmts up 40% (by NE [PA]) Sep 4, 2024 8:46 AM
Car pmts up 40% (by S i d [MO]) Sep 4, 2024 8:55 AM
Car pmts up 40% (by jonny [NY]) Sep 4, 2024 9:02 AM
Car pmts up 40% (by MikeA [TX]) Sep 4, 2024 10:09 AM
Car pmts up 40% (by Just Tim [AR]) Sep 4, 2024 12:19 PM
Car pmts up 40% (by Dodge [PA]) Sep 4, 2024 1:45 PM
Car pmts up 40% (by GKARL [PA]) Sep 4, 2024 2:02 PM
Car pmts up 40% (by BRAD 20,000 [IN]) Sep 4, 2024 5:55 PM
Car pmts up 40% (by mapleaf18 [NY]) Sep 4, 2024 6:01 PM
Car pmts up 40% (by 6x6 [TN]) Sep 4, 2024 8:35 PM
Car pmts up 40% (by Lana [IN]) Sep 6, 2024 5:50 PM
Car pmts up 40% (by zero [IN]) Sep 7, 2024 10:23 AM
Car pmts up 40% (by Pmh [TX]) Sep 9, 2024 2:13 PM
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Car pmts up 40% (by BRAD 20,000 [IN]) Posted on: Sep 4, 2024 2:45 AM
Message:
When screening for affordability...
April 2024 stats: Average new car payment $751.
Up 40% from a few years ago.
Groceries up 20%.
The old standard of 3 times the rent in income no longer works to allow income for other household expenses because the other categories are larger.
BRAD
--73.103.xxx.xxx |
Car pmts up 40% (by Ray-N-Pa [PA]) Posted on: Sep 4, 2024 6:41 AM
Message:
When 3x was created essential's like cell phones and streaming didn't exist either.
I have to wonder if other rules of thumb are also going extinct. In my seasonal resort area, I used to be able to pick up an unwanted cottage at the end of the tourism season. I used the gross rent multiplier (GRM) method using long term rental rates to price them out. In an age of STRs, GRM don't apply and the prices have spiked.
Thanks for the reminder Brad --24.101.xxx.xxx |
Car pmts up 40% (by RB [TN]) Posted on: Sep 4, 2024 7:05 AM
Message:
Priorities. --69.130.xxx.xxx |
Car pmts up 40% (by Marv [IL]) Posted on: Sep 4, 2024 8:24 AM
Message:
Don't forget Social Security payments up 19.1% in last 4 years. --98.34.xx.xxx |
Car pmts up 40% (by 6x6 [TN]) Posted on: Sep 4, 2024 8:42 AM
Message:
So what do you do when incomes don't increase as much as inflation? --76.129.xxx.xx |
Car pmts up 40% (by NE [PA]) Posted on: Sep 4, 2024 8:46 AM
Message:
I’m not usually finding income to be the problem except with the dreamers. It’s everything else that is terrible. --174.240.xxx.xxx |
Car pmts up 40% (by S i d [MO]) Posted on: Sep 4, 2024 8:55 AM
Message:
Many people seem to not understand the 3x the rent rule and use that to QUALIFY applicants. I use it to DISQUALIFY applicants.
If you make less than 3x the rent, we're done regardless of any other criteria. Quick and easy DQ. No need to pull the screening reports or contacting any references.
If you make more than 3x the rent, we move on to the next step of looking at your minimum payments and disposable income remaining.
Car payments are a great way to stay forever in the lower middle class/working poor. Haven't had one since 2008 and I do not miss them. --184.4.xx.xx |
Car pmts up 40% (by jonny [NY]) Posted on: Sep 4, 2024 9:02 AM
Message:
For sure it's something to consider. I just had a single Mom with one little kid that moved out (gave her a pay or quit notice). She makes (and I have the stubs) a very good salary. I know it's not "a lot" but it's a really good salary honestly in this area.
I don't take Child Support into consideration to "pay the rent" because regardless of what they say... it's never "guaranteed". That was her last few months of complaints of not being able to pay the rent because of the lack of child support.
I went back last night to check her application and paystubs, etc to "see what I may have missed" and everything still checks out. Yes, now I see a few things that I probably would look into if I could go back (not about her salary/income but where she lived, etc) but things were good. Her references were good. I even check "non references".
She made (from her job solely) 4X the rent. She had no money to speak of. When she moved out she left much of her kids toys as well as food, dishes, appliances, etc.
This wasn't something that came as a surprise for her at all and it also was something that SHE said she was going to do (we just pushed her along with the pay or quit because she didn't pay as she promised she would so we were covering ourselves with that).
It was almost like she decided "oh, I'm going to move out right now" and left.
I "hate" to think we have to go to 4x the rent because honestly, no one would EVER be able to afford that and then I think... and this person would have passed that as well.
Her credit wasn't bad (before you ask) so I don't know if something happened after she moved in that wasn't on the credit when we pulled it or if she ended up with a lower salary (I doubt it) or she just is not good with her money. That's what I need to "sort of" figure out. But how do you do that? Should we do that?
It's crazy. --67.253.xxx.xxx |
Car pmts up 40% (by MikeA [TX]) Posted on: Sep 4, 2024 10:09 AM
Message:
It doesn't really matter because most of my tenants don't own vehicles, they lease them so they don't have a car payment :)
While car prices have increased fairly rapidly, the bigger impact is the interest rates. Those with a good credit score are now paying 10% interest which is 3X what it was 4 years ago. Those with bad credit scores are now paying 21.5% interest rates up from 11-12%.
If the average American could relate the pain they are suffering now to the large handouts that were given during the pandemic they would probably be a whole lot more politically conservative than they are. But alas that takes too many brain cells and they have killed off most of those. There is still significant support for $25K gifts to buy homes and free money to pay off student loans so no end in sight. --209.205.xxx.xx |
Car pmts up 40% (by Just Tim [AR]) Posted on: Sep 4, 2024 12:19 PM
Message:
Rents are up about 50% here over the same time period, so the 3X rule still works for me. Those whose income hasn't kept up with inflation no longer qualify for the same properties they did a few years ago. --98.174.xxx.xxx |
Car pmts up 40% (by Dodge [PA]) Posted on: Sep 4, 2024 1:45 PM
Message:
$751? That's absurd. Plus insurance and you'll need the full policy. Alot of coin for a depreciating asset... how am I going to buy a new cell phone every year? --98.235.xxx.xxx |
Car pmts up 40% (by GKARL [PA]) Posted on: Sep 4, 2024 2:02 PM
Message:
That's only if you buy a new car or an expensive used one. I think my highest car payment was around $ 350 to $ 400 but I'm not buying top of the line and I always buy used. At one point I had a Lexus LS 400. That is a superb automobile, but mine was 10 years old with 30k miles on it when purchased. I paid $ 14,000 for it. My lifestyle doesn't fit such a vehicle now, but I may get another one day. My point is that no one "needs" to pay a $ 700+ auto note. That's completely optional. --23.28.xx.xx |
Car pmts up 40% (by BRAD 20,000 [IN]) Posted on: Sep 4, 2024 5:55 PM
Message:
Today's applicants have more THINGS in their budget than years ago when 3x was the common plan. When I started these were not household expenses.
-cellphone purchase, ins, and service for family member
-internet
-Netflix, Hulu, Peacock, Disney, etc subscriptions
-online video gaming subscriptions (bigger than you think!)
-Doordash
-high student loans
-online gambling
-weed in many states
BRAD
--73.103.xxx.xxx |
Car pmts up 40% (by mapleaf18 [NY]) Posted on: Sep 4, 2024 6:01 PM
Message:
No matter the salary, money management is not the top priority for many, as Redd1t calls them, "Rentoids."
I have a family, both parents make good money but they can't manage it. Have had their utilities shut off for a few days in a feud (refusal to pay) the utility company. They have gotten into the habit of paying past the 5th EVERY month for the last five months. I charge them a late fee every time.
Scared to give them notice to get out because it's the devil you know versus today's unrentables. --64.246.xxx.xx |
Car pmts up 40% (by 6x6 [TN]) Posted on: Sep 4, 2024 8:35 PM
Message:
Good points Brad, but that doesn't change their income.
How are you changing your screening? --76.129.xxx.xx |
Car pmts up 40% (by Lana [IN]) Posted on: Sep 6, 2024 5:50 PM
Message:
I always stayed at income 4 times rent. If I was still in the business, it would now be 5 times. --216.23.xxx.xx |
Car pmts up 40% (by zero [IN]) Posted on: Sep 7, 2024 10:23 AM
Message:
Wow, you were definitely in a different part of the state than I am. --107.147.xx.xx |
Car pmts up 40% (by Pmh [TX]) Posted on: Sep 9, 2024 2:13 PM
Message:
Marv: don’t forget prices up over 20% since 2020…. --107.116.xxx.xx |
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