I have a question about buying expensive cars

"404 Name Not Found" (404namenotfound) 08/15/2015 at 18:57 • Filed to: None

0

32

What percentage or proportion of your income could/should/would allocate to your car hobby. And I realize that this will differ for everyone. Someone making 50k in New York City, should not buy an expensive car, or a car period (although it is certainly doable, if you are frugal).

But for someone living in the midwest, and making a 50k salary. How much of it would you allocate towards a car.

I’m curious to what you guys think.

pjhusa > 404 Name Not Found 08/15/2015 at 19:17

1

Not taking offense, but get a higher-paying job first, before you consider a premium/luxury car.

Cash Rewards > 404 Name Not Found 08/15/2015 at 19:18

0

Depends on other goals. I put more into my car before kids.

TractorPillow > 404 Name Not Found 08/15/2015 at 19:22

0

It all depends on what you want out of a car. I try to buy cars that I will either make money off of or break even on after a couple years. So cost isn’t an issue, but how much liquid cash I have is the question. I make about 90k a year and buy sub 40k cars and then sell them for about as much as I paid for them (so really just paying gas and insurance). But being financially secure is way more important than owning a cool car.

Van Man, rocks the Man Van > 404 Name Not Found 08/15/2015 at 19:23

0

Roughly 1/4 of your annual income for cars seem like a good starting point.

JQJ213- Now With An Extra Cylinder! > 404 Name Not Found 08/15/2015 at 19:36

0

Depends on your priorities. Im a teenager living at home so most all of my money working goes into my car. I don’t know if I could justify it if I didn’t make as much as I do if I had real expenses to worry about

davesaddiction @ opposite-lock.com > 404 Name Not Found 08/15/2015 at 19:40

0

Any debt otherwise? Homeowner? Wife or kids? Everyone has different priorities. If you have no other debt, and are on track saving well for the future (10-20% of income each year, including 401k match), I say go for buying a used, fun car in the $25-35k range.

Almost all cars are depreciating assets, so you have to keep in mind lost opportunity cost of the money you could be saving. But we all love cars here, and there’s no sense in waiting forever to get a car you enjoy. Just make choices sensibly so you can love your car and not end up regretting it because you spent too much.

Tom McParland > 404 Name Not Found 08/15/2015 at 19:40

1

I’ll be discussing this budget thing in a future post...it might not directly answer your question but it should be a good start to a convo. Keep an eye out for it next week. Oh BTW..I saw some of your other posts about leasing in the side bar...if you need any help in that direction you know where to find me. :D

Sampsonite24-Earth's Least Likeliest Hero > pjhusa 08/15/2015 at 20:23

1

You could always go the used luxo way

pjhusa > Sampsonite24-Earth's Least Likeliest Hero 08/15/2015 at 20:24

0

Aka the high maintenance, no warranty, cost-ineffective way.

Unless you go with CarMax.

CUZ DEMURO

shop-teacher > 404 Name Not Found 08/15/2015 at 20:31

0

When I got my first job, I ran out and bought my first fast car (CPO ‘04 GTO), and the payment was roughly 25% of my take home pay. Let’s just say don’t do what I did, and leave it at that.

jkm7680 > 404 Name Not Found 08/15/2015 at 20:47

0

a lot

spazburn > 404 Name Not Found 08/15/2015 at 22:32

0

Hmm what do you want it to do? Run everyday? Even a DD would probably benefit from Tire, Brakes and suspension work. Not the most expensive but when is Better cornering, More grip and shorter Stopping distances not good.

404 Name Not Found > Tom McParland 08/15/2015 at 23:18

0

Do you have an email sir. And I will be on the look out.

404 Name Not Found > Cash Rewards 08/15/2015 at 23:19

0

But is your car your kid, so morally not doing anything wrong.

404 Name Not Found > Van Man, rocks the Man Van 08/15/2015 at 23:20

0

I have heard that advice, but someone making 100k would buy a Nissan Alitma SL or a Honda Accord EX? Even if you raised it to 30k, I’m not sure it makes sense.

404 Name Not Found > shop-teacher 08/15/2015 at 23:20

0

I was contemplating that, and as good as it sounds in my head. I feel like it is a very very bad idea.

404 Name Not Found > JQJ213- Now With An Extra Cylinder! 08/15/2015 at 23:21

0

I don’t have kids, and expenses are at a minimum. But growing up, I’m not sure if I can keep my car hobby going either.

404 Name Not Found > TractorPillow 08/15/2015 at 23:21

0

If you made 60k and very little expenses or debt. Would you buy a E92 M3 for around 33k?

404 Name Not Found > davesaddiction @ opposite-lock.com 08/15/2015 at 23:23

1

That’s what I’m thinking. I don’t have debts or expenses. Hell I get money for food and my take home is around 60k. I was thinking about getting a E92 M3 for 30k, but it just sounds scary putting that much money into something.

404 Name Not Found > pjhusa 08/15/2015 at 23:23

0

Well there was a Sl500 for 24k on Carmax.

davesaddiction @ opposite-lock.com > 404 Name Not Found 08/15/2015 at 23:31

0

I pretty much amazed myself when I spent 10 grand more than that on my E90 M3 three years ago - ha! But I love it, and have zero regrets. Granted, I waited until I was 34 to buy it, and was able to pay it off completely after two years.

404 Name Not Found > davesaddiction @ opposite-lock.com 08/15/2015 at 23:35

1

I was driving my friends Frozen Red M3 with Hoosier Slicks and tune the other day. Totally made my decision to get one too.

davesaddiction @ opposite-lock.com > 404 Name Not Found 08/16/2015 at 00:05

0

I've got the BPM Stage II tune and the Megan exhaust. Pulls hard, and makes wonderful noises...

davesaddiction @ opposite-lock.com > 404 Name Not Found 08/16/2015 at 00:07

0

There's something to be said about spending your money on something that will give you so many hours of joy.

404 Name Not Found > davesaddiction @ opposite-lock.com 08/16/2015 at 00:10

1

I agree. I’ll look into the two mods too. Off to Carmax and Ebay!!

shop-teacher > 404 Name Not Found 08/16/2015 at 00:24

0

It wasn’t worth the problems and stress it created. I loved the car, but if I could do it again, I wouldn't.

Manwich - now Keto-Friendly > 404 Name Not Found 08/16/2015 at 00:31

0

Do you own your own home? If not, do that first. If you already did that, is the mortgage paid off? If not, do that first.

And you should also be putting away money for retirement unless you have a really good pension plan.

Assuming these things are done, I would say allocate 10-20% of your net income.

NotRichBMWOwner > 404 Name Not Found 08/16/2015 at 01:44

0

Not until you have 20% of a house down payment saved! Seriously saving for a house down payment sucks!

911e46z06 > 404 Name Not Found 08/16/2015 at 04:16

1

If you don’t have a family, go nuts man. I spent literally every cent I had on a car once. Totally worth it.

TractorPillow > 404 Name Not Found 08/16/2015 at 05:37

1

possibly. That's not an outrageous scenario. Just be smart and save some for repairs, parts, insurance, etc.

404 Name Not Found > 911e46z06 08/16/2015 at 06:22

0

I really want a 997 Turbo. At 64k it’s really expensive.

911e46z06 > 404 Name Not Found 08/16/2015 at 15:17

0

If you’re young and don’t have a family, there’s no reason not to go for it. Although it might be a good idea to wait for the Porsche bubble to burst. My ‘87 has like quadrupled in value in the last few years.