What % of salary would you spend on a car?

[Hakkola]

^

If you make 50g's, would you spend 30 on a car?

If you make 240g, would you be comfortable spending it all on a car?

[Sentry]

Not a lot. I like project cars that are quick. Cars that are quick out of the box are no fun. Unless it's something seriously fast. I'm also cheap.

[Mibz]

If I were single and rented a small apartment I'd probably be able to put 60% towards a sweet car.

As it stands I'm engaged with a mortgage and own a $5,000 Jeep.

So yeah.

[jdmXSI]

Realistically I woundnt spend more than 15% of what I make a year... ie: $50k/yr= $7500 per year in payments or $625 per month... That way you can still have a descent car without being car poor. Just my .02.

[Rat Fink]

.

[stealth1313]

I put 80 percent ish into mine for a while

[guessboi]

If I make 50k. I wouldn't spend more than 20k on a car. I learned my lessons 5 years ago but I am now car debt free. lol. :D

car is not a asset but rather a liability. lol. insurance, maintenance, etc...

[anhsicun]

if i made 50,000 i would probably spend around 25 g on a car only if i was single. if i was married with kids or mortgage, i would be probably be driving a 10,000 - 15,000 car. if i was making more then 70k +/ year after tax, i would spend half of it on a car.

[dj_rice]

Agreeing with everyone, to spend that much on a car is not worth it. Rather spend on house upgrades or etc. Theres that term, ****** rich, you drive a hot car but you come home to your shack in the projects.

[Aleks]

10-12% at most

[spike98]

I spend about 14% of my net pay per month on my car payment

[Darkane]

Originally posted by Aleks
10-12% at most

Yes. This.

So I mean at 150k/yr grab a vehicle for 5 years. 75k.

And that would be the upper limit.

I gritted my teeth on a new civic for fuck sakes, being debt free with Net worth is where it's at.

[Integra10]

Originally posted by Aleks
10-12% at most

This. I spent 25% on car payments once and boy was that stupid. Not something I would do again.

Edit: No more n00b babay!!

[CUG]

On the top side, I would spend maybe 15k.

If I made 200k per year, maybe I'd roll large, but I'd pay cash and it wouldn't be brand new. The simple fact that a new car is a brutal investment to begin with makes it so. If I was well into 300-500k+ per year, yeah I'd buy new and write off the depreciation and all of that crap. It's still money that needs to be watched, even if there's a lot of it.

[Tomaz]

I would still live at home and spend 100% of my wage on a car!

No, really. LOL

[wintonyk]

I keep about 10% aside for car payments,insurance and maintenance. Thinking back though I probably wouldn't go with that much for car payments. Not yet at least.

[Disoblige]

Originally posted by Mibz
If I were single and rented a small apartment I'd probably be able to put 60% towards a sweet car.

As it stands I'm engaged with a mortgage and own a $5,000 Jeep.

So yeah.
So true :rofl:

[InRich]

Pay off your house should be a priority before any car...
I remember back in 01. I was making around 45 - 50k a year, and I bought a new Prelude. hated it, lost a bunch of money and traded it in for the accord.... meanwhile, housing was quite low and affordable, when the boom happened, I was still living with my parents, driving a nice car, and no longer able to buy or afford living by myself....

you make 50. spend 5 - 10 MAX u can buy a nice car for that today
you make 250k, buy whatever the fuck you want, after buying the house out.

Too many people in this city think their big shots driving these crazy expensive cars, living in 2000+sq+ foot houses, making 50 - 60k a year.... little do the people around them know that these people are maxed the fuck out. I bet these people miss just one pay cheque, and their fucked. too much flash around this city.

I make good money, I can afford to drive whatever the fuck I want, believe me, yet I'm still driving my 02 accord... which btw is conditionally sold upon inspection this week, but still, my point is that people who make 50 - 60k a year shouldnt be in a hurry to drive nice cars. be smart.

[tehwegz]

1/3 at most 4 me

[01RedDX]

.

[94boosted]

About 10% of what you make per year for monthly payments. i.e. at 50k ~ $450/mo for car

[benyl]

Originally posted by InRich

I make good money, I can afford to drive whatever the fuck I want, believe me, yet I'm still driving my 02 accord... which btw is conditionally sold upon inspection this week, but still, my point is that people who make 50 - 60k a year shouldnt be in a hurry to drive nice cars. be smart.

If you are making good money, why are you taking out a loan to buy an X5?

Buy whatever you want, but don't pay more by taking out a loan. Save your cash and pay cash.

[gpomp]

<10%

[InRich]

Originally posted by benyl


If you are making good money, why are you taking out a loan to buy an X5?

Buy whatever you want, but don't pay more by taking out a loan. Save your cash and pay cash.

cant afford it.

[01RedDX]

.

[StreetRacerX]

If I made 240k a year? Shouldn't be a problem blasting cash into a car while owning a house, if I made 240k a year I'd have the fastest 3/S in the 1/4 in Canada :poosie:

[CHICHARITZHI]

[QUOTE]Originally posted by InRich
[B
Too many people in this city think their big shots driving these crazy expensive cars, living in 2000+sq+ foot houses, making 50 - 60k a year.... little do the people around them know that these people are maxed the fuck out. I bet these people miss just one pay cheque, and their fucked. too much flash around this city.


u just don't understand these people , they just want enjoy their lives before they die because they knew they cannot bring their house or cars to their grave when they die. Pay off ur house is wrong idea unless if u are rich and there's no guarantee that u still alive with in 35 years because there's so many disaster will strike on earth in the future , remember life is too short so enjoy it as many as u can..

[InRich]

Originally posted by 01RedDX


Or, you could not listen to this guy, and be responsible and still enjoy your money. Life is too short. A 5-10K car with NO warranty can cost you a lot more than that in lost time, expenses and headaches.

BTW, your whole pretentious post smacks of &quot;I'm so much smarter than everybody else, and I make so much money, and I'm also much smarter with my money than anyone I know&quot; under the guise of offering advice. Come on Rich, you're on, like, your 7th account and you still haven't learned your lesson.

lol.... 2nd account... I didnt say I was smarter then everyone, just offered the dude my advice... whats your problem? boyfriend stop jerking ya off or something?

[Redlyne_mr2]

Life is short no fun in being the richest guy in the cemetary.

[01RedDX]

.

[Twin_Cam_Turbo]

I would spend 50% of my income on cars easily, its one of two things I really enjoy in life. I think I probably spent 75% of every penny I have ever earned on my car, truck, and ATV.

[Kloubek]

For me, it is all about expendable income. It wasn't too many years ago that I had little to none.

Now, I'm sitting with 5 vehicles. All paid for.

But to start, getting solid finances and out of debt was more important. Then the importance was buying a home, and being able to afford that. THEN came the cars. If I sell them all off, I can buy pretty much whatever I want outright. And I think that is the way you SHOULD do it... build up the cash, and work towards buying a vehicle outright rather than paying even moderate amounts of interest. Debt sucks.

I think too many people put the vehicle first, which really restricts them for living expenses. Don't worry - it will come.

[natejj]

10% of my salary, MAX.

[stealth1313]

Originally posted by 01RedDX


whoa. That's like 400 bucks.










jk :D no i work fulltime

[shakalaka]

When I make $240K a year, I'd prolly spend about $200K of it. But once I get my dream car that's me done, after that it's all saving. But I already know that I am going to be spending my first crazy amount of money on a car before a house or anything else. May be stupid in other people's books, but for me, you can't put a price on a dream.

[max_boost]

Originally posted by Redlyne_mr2
Life is short no fun in being the richest guy in the cemetary.

I agree totally haha which is why I'm bought my dream car now, partying and enjoying life. Tomorrow might never come haha

[Godfuader]

What the formula is: 50% of your annual gross financed over 60 months, maximum.

Smarter formula: buy a 2.5 yr old car with at least 60% cash.

[blueinsure1]

Original Post Removed. (Please read the Forum Rules and Terms of Use (http://forums.beyond.ca/articles.php?action=data&item=1) before posting again, or risk getting banned).

[UndrgroundRider]

I wouldn't look at buying a car with a percentage of my income. I would save first, then buy something outright.

That's what I've done with all four of my current vehicles, and that's what I'll do with my new bike that I'm buying next year. :poosie:

[LilDrunkenSmurf]

Originally posted by jdmXSI
Realistically I woundnt spend more than 15% of what I make a year... ie: $50k/yr= $7500 per year in payments or $625 per month... That way you can still have a descent car without being car poor. Just my .02.

This is essentially what I'm doing right now.

~15%/year in payments.

Theoretically, if I didn't have to pay taxes, I could buy my car outright, but other things intrude in life.

[Unknown303]

I spent 4% on my latest vehicle. :bigpimp:

[Tarrantula]

Originally posted by Hakkola
^

If you make 50g's, would you spend 30 on a car?

If you make 240g, would you be comfortable spending it all on a car?

I spend almost 30% of my income on my vehicle. and thats just insurance and payments.

Its all about what YOU can make work. Dont spend money on something you dont need.

[atgilchrist]

Originally posted by 01RedDX


Or, you could not listen to this guy, and be responsible and still enjoy your money. Life is too short. A 5-10K car with NO warranty can cost you a lot more than that in lost time, expenses and headaches.



This is very true! We sold our 03 Murano because the maintenance was turning into a nightmare. After replacing the exhaust, rear suspension, front control bars and brakes in a 8 month period, I was saving no money over buying a new car with a warranty.

[ercchry]

i am under 15% of my gross for payments.... but that is just for my day job income... the side work i do for the most part covers my car payment so... 0%?

but really since i sold the shit box and bought brand new i have been saving money every month due to no longer buying car parts...tows.... etc, etc :rofl:

EDIT: i just looked at the value of jeeps the age mine will be if i make my payments for the full term of my loan and what i find awesome is the resale of these things...

so my yearly gross income percentage of money thrown away on a depreciating asset is under 5% and that is just comparing it to the old tj sports i was finding, not the rubicon

that is way, way lower than it use to be with the older "mod'ed" cars since every dime put into them was thrown away...

[jjmac]

Originally posted by Tarrantula


I spend almost 30% of my income on my vehicle. and thats just insurance and payments.

Its all about what YOU can make work. Dont spend money on something you dont need.

I'm on the same boat, 30% but have the ability to juggle other expenses with the remaining 70%.

[CSMRX7]

Before I was married I had 4 cars 3 bought out right and 1 was financed. I was probably spending 15% of my gross on cars and parts.

Now that I am married I have 1 summer and 1 winter car and am spending less tha 10% gross on the cars and the parts :(

Some people have talked about buying a car outright, and I don't necisarily agree. Carrying some debt can actually be advantageous. For instance I currently have a car loan at .9% for 60 months. I had the cash to spend up front but invested it instead. Over that 60 months I will have made enought on the princible to pay off the entire loan and still have the money I would have spent on the car + the small amount of equity left in the car. Obviously the most fiscally responsible thing to do would be to not put so much money in depreciation, but life is too short.

[AndyL]

At 50-60k - Little to nothing. Get yourself a good beater... Even 200/month plus the increased insurance ads up. Unless of course you have the ability to write it off.

New car maintenance is a b*tch, the increased insurance is not worth it. Best to just drive an older reliable vehicle. Our '05 pontiac wave cost us way more every month in service/maintenance/operating costs than the 90 4runner that replaced it - even factoring in a maintenance / repairs buffer...

Yes of course the key is to find a GOOD beater - be careful on your choice of vehicles...

[ExtraSlow]

I'd say the more important stat would be percentage of "disposable" after-tax income you spend on your ride. That's after you take out mortgage, utilities groceries etc.
if you just do percentage of gross income, that's not really very accurate, mine comes out to about 4%.
But, percentage of disposable, after tax income, and I'm more like 25% A young family has some huge fixed expenses.

The guy making $240k/yr might have zero mortgage, or he might have a huge mortgage, which would change his situation considerably.

[Integra10]

Originally posted by InRich
Pay off your house should be a priority before any car...
I remember back in 01. I was making around 45 - 50k a year, and I bought a new Prelude. hated it, lost a bunch of money and traded it in for the accord.... meanwhile, housing was quite low and affordable, when the boom happened, I was still living with my parents, driving a nice car, and no longer able to buy or afford living by myself....

you make 50. spend 5 - 10 MAX u can buy a nice car for that today
you make 250k, buy whatever the fuck you want, after buying the house out.

Too many people in this city think their big shots driving these crazy expensive cars, living in 2000+sq+ foot houses, making 50 - 60k a year.... little do the people around them know that these people are maxed the fuck out. I bet these people miss just one pay cheque, and their fucked. too much flash around this city.

I make good money, I can afford to drive whatever the fuck I want, believe me, yet I'm still driving my 02 accord... which btw is conditionally sold upon inspection this week, but still, my point is that people who make 50 - 60k a year shouldnt be in a hurry to drive nice cars. be smart.

Didn't you post asking which you should buy the X5 M or the Porsche? Yeah still driving around in your 02 Accord how humble of you. Does every post you make have to be so condescending and arrogant? There's tonnes of people here with more money than you. REAL money and you don't see them talking about it in every god damn post that they make.

The OP was about what % of your salary you would spend on a car and you have to talk about how modest AND rich you are? You know what I think there is too much of in this city? Pompous dickhead like you who make what 125k? Walking around like you're Donald Trump. You're not as rich as you seem to think you are
and any asshole that needs to go on-line and brag about his funds shows how truly pathetic he is to have no one to talk to in person. What's the matter all of your friends get fed up with your shit too?

[LilDrunkenSmurf]

Originally posted by InRich
Pay off your house should be a priority before any car...
I remember back in 01. I was making around 45 - 50k a year, and I bought a new Prelude. hated it, lost a bunch of money and traded it in for the accord.... meanwhile, housing was quite low and affordable, when the boom happened, I was still living with my parents, driving a nice car, and no longer able to buy or afford living by myself....

you make 50. spend 5 - 10 MAX u can buy a nice car for that today
you make 250k, buy whatever the fuck you want, after buying the house out.

Too many people in this city think their big shots driving these crazy expensive cars, living in 2000+sq+ foot houses, making 50 - 60k a year.... little do the people around them know that these people are maxed the fuck out. I bet these people miss just one pay cheque, and their fucked. too much flash around this city.

I make good money, I can afford to drive whatever the fuck I want, believe me, yet I'm still driving my 02 accord... which btw is conditionally sold upon inspection this week, but still, my point is that people who make 50 - 60k a year shouldnt be in a hurry to drive nice cars. be smart.

Wow. That was pretty condescending.. Fuck you too..?

[InRich]

^^ haha wow. you guys mad?

[A790]

Originally posted by InRich
^^ haha wow. you guys mad?
No, you're just a flaming cock.

Originally posted by Tomaz
I would still live at home and spend 100% of my wage on a car!

No, really. LOL
Isn't that exactly what you did? ;)


Personally, I clear about 65k after tax per year. My monthly car payments are $385. I went and looked at a bunch of cars when I was shopping that were in the 40-60k range ('10 Camaro SS, '10 370Z, etc.) but wound up buying a 22K Kia Forte Koup. To be honest, as much as I wish the Koup had an extra 40 horsepower or so, I love the car for the fact that it allowed me to buy a house as quickly as I did.

Save your scratch till you own a place, it's paid down a bit, and then buy the flashy car. Besides, aren't you already rolling in a Bimmer AND a classic Merc?

[Hakkola]

Haha, flame wars are entertaining.


Originally posted by A790

Besides, aren't you already rolling in a Bimmer AND a classic Merc?

I'm not in the market for a new car, I just thought it was an interesting question.

[Xtrema]

10% for all car expenses.

I may not pay cash but I'm sure i can before I decide on a car. if I can't pay cash for it, can't afford it.

[adam c]

right now I'm paying about 17% for all my car expenses

[403Gemini]

Originally posted by InRich
Pay off your house should be a priority before any car...
I remember back in 01. I was making around 45 - 50k a year, and I bought a new Prelude. hated it, lost a bunch of money and traded it in for the accord.... meanwhile, housing was quite low and affordable, when the boom happened, I was still living with my parents, driving a nice car, and no longer able to buy or afford living by myself....

you make 50. spend 5 - 10 MAX u can buy a nice car for that today
you make 250k, buy whatever the fuck you want, after buying the house out.

Too many people in this city think their big shots driving these crazy expensive cars, living in 2000+sq+ foot houses, making 50 - 60k a year.... little do the people around them know that these people are maxed the fuck out. I bet these people miss just one pay cheque, and their fucked. too much flash around this city.

I make good money, I can afford to drive whatever the fuck I want, believe me, yet I'm still driving my 02 accord... which btw is conditionally sold upon inspection this week, but still, my point is that people who make 50 - 60k a year shouldnt be in a hurry to drive nice cars. be smart.

For 5-10k now, could buy the prelude you owned ;)

[max_boost]

What's with you guys and this cash thing? I guess with the NSX I had no choice but that car is different.

For my daily driver, WRX is on a 1.4% 2 year lease. I would have to be crazy to pay it out haha Not to mention I can get rid of it and jump into a 2012 when the time comes. Just change the oil every 6k and that's it. So low maintenance. Not to mention fast as fuck for a daily driver, and a $150 tune gave it another 10% increase in power #'s.

But then I view cars differently than some of you, if it's depreciating, it's not an asset, therefore it's an expense just like gas, insurance, maintenance etc.

With that said, 10-15% is about right.

[Xtrema]

Originally posted by max_boost
What's with you guys and this cash thing? I guess with the NSX I had no choice but that car is different.

I meant that if I don't have $40K around doing nothing, I won't buy a $40K car. In the end I would still lease it and invest that $40K on something else. But if the rate is high, you may as well pay cash for it.

[max_boost]

Originally posted by Xtrema


I meant that if I don't have $40K around doing nothing, I won't buy a $40K car. In the end I would still lease it and invest that $40K on something else. But if the rate is high, you may as well pay cash for it.

True. What was the lease on the S4? 6.9% Yeah might as well pay cash in that case. :D

But for 335's etc. then lease ftw as they are usually in the 4% range :D

But then I never pay cash for any big purchases, I'm a monthly payment kind of guy. I like to finance my lifestyle, gives me a reason to work everyday hahaha

[lint]

Originally posted by InRich
^^ haha wow. you guys mad?

is your house paid off?

[Chandler_Racing]

The total purchase price of the car was about 33% of my salary.

The lease payments are about 6.8% of my salary.

[jonnycat]

Between the truck and the car, combining payments & insurance, I'm about 15% of gross income / year

[D'z Nutz]

I wouldn't want to spend more than 10% of my salary on a car and that's being pretty generous. I just don't see the point of blowing that kind of money on something that depreciates. I just calculated it out and only about 6% of my salary is going towards my car. Hell, I was even without a vehicle between 2003-2008 just cause it wasn't a necessity.

[InRich]

Originally posted by 403Gemini


For 5-10k now, could buy the prelude you owned ;)

yea i know... i still really like their looks... their just too small for me.


Originally posted by lint


is your house paid off?

er.

[arian_ma]

Are you guys talking 15% of income before or after taxes??


Originally posted by CSMRX7
Now that I am married I have 1 summer and 1 winter car and am spending less tha 10% gross on the cars and the parts :(

WTF do you do that you spend less than 10% GROSS on cars and parts and you drive a Turbo (or supercharged...I can't remember) E9x M3??????

[n1zm0]

Now that i have a mortgage, i'd say i spend about 4% (after taxes) of my yearly income on my car lol keeping in mind basic maintenance like oil/brakes/all fluid flushes i do myself, the winter beater is a better than normal 'winter beater' that i could in fact drive year round, but i still want my toys before it's all over - aka the summer car, when that gets into the cycle i could see it jumping to about 20%(after taxes) of my funds going into it. I also have bought all my cars outright so i think i'll be safe to be able to pour some money into it and still have my head way above the water with the mortgage.



Originally posted by dj_rice
Theres that term, ****** rich, you drive a hot car but you come home to your shack in the projects.

this is 75% of the ppl in Miami who drive high end cars according to my friend who just started a new job there :rofl:

[Sugarphreak]

...

[Crymson]

I'm not sure about what we're spending? Are we talking "what is your vehicle worth as a % of your annual income" or "How much of your monthly income goes towards car payments"?

[Strider]

Originally posted by Crymson
I'm not sure about what we're spending? Are we talking &quot;what is your vehicle worth as a % of your annual income&quot; or &quot;How much of your monthly income goes towards car payments&quot;? :werd:

Also... finance payments? or lease payments?
Assuming finance payments, does the residual value factor in?

So many people giving a numeric answer to a question that can be interpreted 10 different ways.

[Kg810]

:werd:

And what about cases of private purchase from the states? :dunno:

[shakalaka]

^Someone ban this clown.

[rc2002]

I was over 100% at one time. It's come down, but it's still quite high.

The worth of my vehicles are over 50% of my annual income. But if you divide the depreciation by 60 months to get a monthly number (like some are doing here) then it's single digit percentages.

There are way too many factors to consider. Everyone's individual situation is different. I think the ratio of vehicle worth to net worth is a much better metric.

[Kg810]

Originally posted by shakalaka
^Someone ban this clown.

lmao... did I say something wrong?

[Skyline_Addict]

If we're talking monthly payments, then ya...of my annual salary, monthly payments should not exceed 1% , and subsequently yearly payments should not be far off 10%-12%. I have 2 cars, one which I modify (and has no liens/payments) and the other as a daily driver, which I make monthly payments on.

[derran.m]

I spend a whole whopping 11% of gross salary on car ... including payment, insurance, etc... I have a mortgage and a family, so car isn't exactly a priority in my finances..

[Cos]

I currently spend 9.8% of my salary (before tax) on my car payment.... sooooo.

Add in insurance, gas, mods, etc and that climbs to 16%

[lint]

Originally posted by InRich


Originally posted by lint


is your house paid off?

er.

So you're still living with your parents?

[TYMSMNY]

Originally posted by lint


So you're still living with your parents?

don't most beyond millionaires?

I think a formula needs to be given so people that would like to compare should be doing apples-to-apples.

[410440]

Originally posted by Mibz
If I were single and rented a small apartment I'd probably be able to put 60% towards a sweet car.

As it stands I'm engaged with a mortgage and own a $5,000 Jeep.

So yeah.


Wow.... Looks like sharing a name has more in common than just that.


Engaged, Mortgage and a $5000 Jeep.

[911fever]

lot of good advice in this thread here