I am thinking about getting a new car, due to the fact i have been a student of one sort or other for the last 10 years i have always drove cheap cars. Now i have money to spend, is 20% of monthly income too much to put out on a new car?
It's more than I'd spend. My car is paid off but when I had a payment it was less than 10% of my monthly net income.
It depends on a lot of factors. A car is a depreciating asset and you have to ask yourself what you get out of spending more money on a car.
Yeah i kinda agree, i'd just be buying it for the sake of it tbh. But i like cars.
My car payments right now are about 5% of my monthly, but then i drive a Toyota Aygo lol...
None!
my car has been paid off for 10 years
Woo Hoo!!
Every once in awhile I find myself thinking of getting a new truck then I do little research and see the monthly costs and say fuck that.
DYS - Every once in awhile I find myself thinking of getting a new truck then I do little research and see the monthly costs and say fuck that.
Yeah im kind of the same.
I could easily afford to, but never buy new cars. It's a huge waste of money when you can buy an approved used with the same warranty and let someone else enjoy the steep depreciation.
Ant C - I could easily afford to, but never buy new cars. It's a huge waste of money when you can buy an approved used with the same warranty and let someone else enjoy the steep depreciation.
Over here approved used only have a 1 year warranty.
My cars are paid for. At 42 I will not spend more than 10% and only for 36 months. I'm about to buy the wife a Tahoe. Going used with less than 50k miles. Car payments killed me for many years. Not falling into that trap. I'm hoping to have the house paid off in 10 years and be debt free
I buy previous model year when they are giving steep discounts at the dealership. I bought my 2013 Jeep in 2014. Paid 10k under MSRP and it had 40 miles on it.
I love cars. I have always been a car guy. I worked at the HQ of a major auto company right out of grad school.
Don't piss money away on cars.
Financial security is more important that a shiny new car.
Don't have a car payment. But I make around $225k and have a $32k Audi S4. So 13% of my annual is the full value of the car. If I had a $500 per month payment, it would be around 4% or taken home net income.
And NEVER buy a new car. Stupid.
Zero. Straight cash homie.
Bought a new platinum f-150 for me and a Tahoe ltz for my wife last year. Both fully loaded.
it was the dumbest thing I've ever done financially.
buy a good 1-2 year used vehicle. The new car smell isn't worth losing 25 percent of its value once you sign the papers.
I pay around 6%
erdoc1983 -Bought a new platinum f-150 for me and a Tahoe ltz for my wife last year. Both fully loaded.
it was the dumbest thing I've ever done financially.
buy a good 1-2 year used vehicle. The new car smell isn't worth losing 25 percent of its value once you sign the papers.
The ONLY way you can save that situation financially is to take care of the vehicles and drive them until the wheels fall off.
I actually disagree with people who say buy a few years old. Look at the TCO on new vs used. It's not what you think it is. Dealer incentives like interest free financing can make a significant difference as well.
Right now my payment is 10% of my gross. That doesn't seem like a lot but add our incredibly high insurance rates in Canada, gas and parking and all of a sudden it's 20% which is just ridiculous. Way to much.
But If I bought a car that's 50% the price, I'd have 75% of the monthly cost and 50% of the car.
So it just doesn't make sense to spend less for me I'm still happy with what I purchased.
The whole concept of car ownership is going to change dramatically in the next 10 years anyway.