what is this

[ponyo]

Originally posted by: PricklyPete
To be honest at 80K a year...you shouldn't be driving more than a 30K car...I'd recommend even less.

At $80k a year, max should be $29k so you're right on. 36 months loan max. About $850 a month in payment. If $850 a month is too much with other expenses, you need to look for cheaper car.

 

[maddogchen]

Originally posted by: weflyhigh
saw it on the recently uploaded on bbzzdd

http://pics.bbzzdd.com/users/maddogchen/DSC00091.JPG

any idea? thanks lol

I took that picture of the illegally parked Nissan GT-R on a trip to Napa, CA.


At $80,000 a year, I would say maybe a $20,000 car at the most since you are saying you had student loans too. I would say save more money (contribute more to a 401k maybe?), pay off student loans, and drive a cheaper car.

 

[Budmantom]

It doesn't matter what you drive, you can buy a fun vehicle for $6k or $60k but if you make $80k you shouldn't have car payments.

 

[theeedude]

It's OK to have car payments if you can invest the money at higher interest rate than you pay on the car.

 

[sdifox]

Originally posted by: DVad3r
I'm from Canada too, Toronto to be exact, and what you and your wife make is plenty enough to afford some nice toys here. You could be driving a much better car. Which part of Canada are you from?

Unless of course you have a million dollar home you are paying off?

I am pretty sure I have told you before that I am in Toronto.


No I don't have a million dollar home. A lot of our money just go to taxes and kid is not cheap either. I can't afford the maintenance on million dollar homes. I could be driving a better car, but I don't need to.

Currently saving up to buy another house in 18 month time frame. Move to new place and rent out current place. I figure 2 more year on the Protegé5 and then look into another used luxury vehicle. Chances are I will end up with the wife's car and she gets something else. Reality really bites

 

[MotF Bane]

Originally posted by: KaChow

Originally posted by: Marlin1975
Me and my wife make about 135k a year together before taxs. We have NO car payment. We save up while driving out currnet car and replace it when it gets old and we have the funds.

Best car is the one you don;t have to make payments on.

This x 100. The wife and I make about 2x what you said and I drive a Civic and she drives a RAV. We paid cash for both, less than $40k combined. If I see a car I like I check out reviews, prices, etc. then go for a ride on my motorcycle and remember that I bought my bike for (inexpensive) fun and a car for commuting/sitting in traffic (i.e., no need to spend oodles of money to upgrade just to look pretty sitting still). Yes, I know I'm killing the economy.

Whoa, wait, fiscal responsibility? Blasphemy!

 

[sdifox]

Originally posted by: Budmantom
It doesn't matter what you drive, you can buy a fun vehicle for $6k or $60k but if you make $80k you shouldn't have car payments.

even if it's 0 percent financing?

 

[DVad3r]

Originally posted by: sdifox

Originally posted by: DVad3r
I'm from Canada too, Toronto to be exact, and what you and your wife make is plenty enough to afford some nice toys here. You could be driving a much better car. Which part of Canada are you from?

Unless of course you have a million dollar home you are paying off?

I am pretty sure I have told you before that I am in Toronto.


No I don't have a million dollar home. A lot of our money just go to taxes and kid is not cheap either. I can't afford the maintenance on million dollar homes. I could be driving a better car, but I don't need to.

Currently saving up to buy another house in 18 month time frame. Move to new place and rent out current place. I figure 2 more year on the Protegé5 and then look into another used luxury vehicle. Chances are I will end up with the wife's car and she gets something else. Reality really bites

You probably did, I just don't remember or keep tabs on where everyone is. You seem like a guy who has his expenses focused on other stuff, family, houses, investments, etc, which is cool. I'm just saying that if your directives were focused somewhere else you can easily flex a good car, because you and your wife are in the "well off" category. I work for the schoolboard and make around 45 k a year, and I know what I can afford. Granted I don't have a family or anything like that.

But I agree, buying used is the best.

 

[DVad3r]

Plus there are people who don't have the need for nice cars, and that's good too. My dad for example would be driving a basic car even if he won the lotto and was rich. He would buy himself something like a Toyota Tundra and drive it for 15 years.

He's going strong with his 92 Camry Wagon and 450,000 km. I4 too

 

[jRaskell]

Yearly income is irrelevant. Disposable income is all that really matters. Calculate your monthly balance, how much cash is left over?

What other goals do you have. Are you putting an adequate amount into retirement? Do you intend to buy a house in the future, saving for that? Do you have rainy day savings to cover at least 6 months of your current expenses?

80k in a reasonable apartment in New York city would leave you with FAR less disposable income than 80k in your own house in upstate Vermont.

 

[sdifox]

Originally posted by: DVad3r

You probably did, I just don't remember or keep tabs on where everyone is. You seem like a guy who has his expenses focused on other stuff, family, houses, investments, etc, which is cool. I'm just saying that if your directives were focused somewhere else you can easily flex a good car, because you and your wife are in the "well off" category. I work for the schoolboard and make around 45 k a year, and I know what I can afford. Granted I don't have a family or anything like that.

But I agree, buying used is the best.

Most of out expenses are actually food and daily consumables. We don't cook much since it is very hard to cook for 2 adult and 1 kid. I can understand people wanting to buy a nice car, but take care of your finances before you decide to commit to big hole aka car.

 

[PricklyPete]

Originally posted by: rh71

Originally posted by: PricklyPete
To be honest at 80K a year...you shouldn't be driving more than a 30K car...I'd recommend even less.

That's assuming people don't have savings. People (not saying just you) keep throwing out numbers to live by but it really depends. If you're a college student or recent graduate and still have debt and depend on every other Friday, then that probably works out correctly, but if you are somebody with just a mortgage/rent to pay and no other real debt, you will have savings to work from as well as your annual salary. If you don't buy cigs / beer / games every month, $600 in restaurants a month, etc... you will have savings, easy. And even better, you can pay it off at delivery (and start saving again). Not everything should be immediately attainable - though you get that feeling from people sometimes - and it's not always about the annual salary either. I hope people don't live everyday thinking they need to spend something from every paycheck.

I don't fully agree with you. My statement was made regardless of savings. I certainly would not recommend anyone buying a new car if they do not have at least "rainyday savings". I also would never recommend taking out a loan for the full price of the car.

Even so, if someone is making 80K a year...the time it takes to save up more than 30K is substantial based on an "average" person's consumption nationwide. Of course someone who spends nothing other than on his car could potentially save a lot more...but that is very, very rare. So my advice based on averages would say that buying more than a $30K car on an $80K salary is really buying above your means regardless of whether you are using savings or not. It just isn't financially responsible.

That being said...I understand we all have different priorities. If a car is that important to you, go for it. I love cars and regularly have the urge to use savings and buy something really nice during this economic downturn (where there are so many good deals out there...and M3 would be so much fun)...but I restrain because I have other priorities. I would not criticize another person for buying that M3 in a similar financial situation as myself...but I would realize that our priorities differ...which is fine.

 

[ayabe]

Rule of thumb:

Never finance more than half of your yearly salary.

So if you've got $5,000 to put down, don't spend more than $45K total.

 

[vi edit]

Originally posted by: spidey07
Car payment should never really be more than 10% of your take home after all other savings/witholdings at maximum (better if lower) 80K is probably around 4200 take home a month so 420 bucks would be about right. An easier metric is you should make 4x gross yearly than the car. So at 80K you can afford a 20K car.

:thumbsup:

Could is a lot different than should.

 

[rh71]

Originally posted by: PricklyPete
Even so, if someone is making 80K a year...the time it takes to save up more than 30K is substantial based on an "average" person's consumption nationwide. Of course someone who spends nothing other than on his car could potentially save a lot more...but that is very, very rare.

Therein lies the problem. Too many people are in debt with monthly credit card charges and I would guess it isn't all for critical things. You have your mortgage/rent, utilities, & food. How much of that $80k does it cost? Ask yourself what fun stuff you spend on and how often. Sure, like you said, a lot of people have different priorities, but that doesn't mean you can't do it with just savings after a couple years. What do you think of these numbers?

$80k gross = $55k net - $25k living/expenses (pretty high estimate already)... annual amount left over $30k. Nice car within 2 years, paid. And still have some left over for entertainment during this. And yes, rainy day money is from all the time you hadn't started the car fund. The point is if you spend wisely and don't waste it on weekly/monthly crap (which undoubtedly a lot of people buy, I'm guilty now too), you can make it work and not be constrained to a specific ceiling for a car given an annual salary figure. I believe all it takes is patience if you have a goal in mind. Instead it seems everyone wants things now and won't work toward it. A guy making $50k can get the same car in a bit more time. That's why I don't believe in this salary = specific car thing.

It just isn't financially responsible.

Neither are their current expenditures, then. I can't stand the phrase "above your means". If you have a decent place to live, food for a family (dual income), some change in the bank for 6-12 months, you are living fine, not "above your means" just because your new car (which incidentally lasts 10+ years) is a big portion of a 1-yr salary.

 

[blahblah99]

Originally posted by: weflyhigh
saw it on the recently uploaded on bbzzdd

http://pics.bbzzdd.com/users/maddogchen/DSC00091.JPG

any idea? thanks lol

edit:
and what model is this
http://img16.imageshack.us/img...290015931462897764.jpg
thanks again
edit2: is that 2nd one the 599 GTB http://www.ferrari.com/English..._GTB/Pages/599GTB.aspx ?


EDIT NEW QUESTION:
Lets say you make 80,000 a year and live in a decent apartment (nothing too expensive), what's the maximum you could probably spend per month on a car payment? Maybe a % of salary that is typical?
assuming some (minimal) student loans too but not that big of a consideration
figured id just edit this thread rather than make a whole new one

At $80k a year gross income with rent payments, I'd feel comfortable paying AT MOST $400-$500 a month in car payments.

 

[weflyhigh]

what about leasing? how much of a difference would that make?

 

[exdeath]

1) You should drive a beater for a year or two and buy any car you want in cash. Then the money you had been putting away for the car for that year or two, you continue putting away even after you buy the car in cash. You're in a position where a) you're making a decent income and b) don't have much debt. Take advantage of that to stay ahead of the game for now and forever.

2) You shouldn't be looking at any sort of nice or expensive car without an enclosed garage to keep it in. You don't buy a $40,000+ car to park it out in the sun and rain 24/7, more so at an apartment where it well get keyed, sat on, brushed up against, dinged by doors, etc.

 

[vi edit]

Originally posted by: weflyhigh
what about leasing? how much of a difference would that make?

If you can't write it off, then the concept is generally the same. It's a monthly payment and you can only afford what your income allows. It just allows you to get a nicer vehicle than you would typically finance except you have zero equity in it after your term is up.

I won't get into the debate of leasing since some people can't approach it objectively. There's good leases and bad leases. Good ones essentially are the same as a zero interest loan on vehicle for the term of the lease and can actually come out head. Bad ones have jacked up numbers that completely fleece you.

If you are a) in the market for a new car and b) don't typically keep them for more than three years anyway and c) can stay within the milage terms then leasing is a valid option.

For the right type of buyers they make sense. And that's all the more I'm getting into it.

 

[halik]

When I first got a job in 2006 (~85K?), I spent 15 grand for a CLK with 60K miles on it. I just hate depreciation ... next car was $7500, but my income was near 0.

If you are a DIY guy, you can get awesome deals on luxury cars with 50-60K miles. People are scared to buy them because of maintenance costs and my time (especially on the weekends) is worth a lot less than what the dealer charges.

Case point, I can swap CVs on my Audi in 30mins total time.

 

[IcePickFreak]

Sell House/Cancel Lease + Buy Ferrari

Don't let anybody tell you that they aren't comfortable to sleep in, chances are they never even sat in one much less slept in one.

 

[Bignate603]

Originally posted by: sdifox
Most of out expenses are actually food and daily consumables. We don't cook much since it is very hard to cook for 2 adult and 1 kid. I can understand people wanting to buy a nice car, but take care of your finances before you decide to commit to big hole aka car.

Um, how is it hard to cook for 3 people?

 

[DVad3r]

Originally posted by: Bignate603

Originally posted by: sdifox
Most of out expenses are actually food and daily consumables. We don't cook much since it is very hard to cook for 2 adult and 1 kid. I can understand people wanting to buy a nice car, but take care of your finances before you decide to commit to big hole aka car.

Um, how is it hard to cook for 3 people?

Because the kid eat's apple sauces.

 

[sdifox]

Originally posted by: Bignate603

Originally posted by: sdifox
Most of out expenses are actually food and daily consumables. We don't cook much since it is very hard to cook for 2 adult and 1 kid. I can understand people wanting to buy a nice car, but take care of your finances before you decide to commit to big hole aka car.

Um, how is it hard to cook for 3 people?

I am into proper Chinese meals. So usually 4 dishes + 1 soup. That is a lot of effort to go into for 2 adults and a kid. 1 more mouth would make the effort worthwhile.

 

[sdifox]

Originally posted by: DVad3r

Originally posted by: Bignate603

Originally posted by: sdifox
Most of out expenses are actually food and daily consumables. We don't cook much since it is very hard to cook for 2 adult and 1 kid. I can understand people wanting to buy a nice car, but take care of your finances before you decide to commit to big hole aka car.

Um, how is it hard to cook for 3 people?

Because the kid eat's apple sauces.

lol, no, he is way past that, but still, hard to cook for so few mouths.