re: Car Finance Maximum

Don't just consider the cost to purchase...consider overall cost of ownership. A slightly more expensive, but fuel efficient vehicle may be a better buy than a cheaper but gas guzzling SUV or truck, if you have a long distance commute. Repairs, oil changes, tires (a hidden cost if the size/rating is unusual), etc drive up the cost of ownership for certain makes/models.

The best car is a paid-for car. I'm a fan of keeping a vehicle 10+ years...it can be cheaper to rent 2-3 times a year for long roadtrips if you're concerned about reliability as your car gets older. A weekly rental runs about $100 most times of the year....no need to rush out and buy new if most of your driving is short hop/local. Of course, regular maintenance/cleaning is key to making a car "last" this long. I know people who think that the answer to a dirty/dingy interior is to buy a new car....a thorough detailing is cheaper than a new car, too.

Needs vs wants. To me, an expensive car on a modest salary is the epitome of "hood rich".

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I see folks come in and trade a 2013-2014 because they "don't like it anymore"

Negative equity + Cost of new Vehicle=****

They have a monthly income of 2700.00 with a monthly note of 600+

Blows my mind.

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I think people who do that shouldn't breed.

Car dealers hate me.

This is how I buy a car. I am a brand loyalist. I have only bought Volvos for 13 years, and will only buy Volvos for life. If you don't have a late model Volvo on the lot, you will not earn my business.

I find vehicles that I want in Dallas, Houston, Atlanta, Memphis, NOLA, and all points in between. I fax every dealer a letter outlining that I am interested in XXXX vehicle that they have listed online with an offer price between KBB Good and Excellent Trade In Value. I ask that they fax me back any pertinent information and either acceptance of my offer or a counter offer with an explanation on why their vehicle is worth more than my offer.

Normally, about 20-25 of these faxes go out. I receive about 3-4 responses back, and buy the one that I like the most. The last one paid for my one way plane ticket to Atlanta and picked me up at the airport, and I drove the XC90 back.

Its not exciting, but I usually save several thousand dollars over what the local dealers in Jackson have the vehicles priced for. The reason I fax is that I do not give them any contact information like my phone number or e-mail. I still get calls from dealerships that I visited 15 years ago.

Just three.

Two SUVs for my wife and a car for me in between.

Had a 2002 XC90 that I bought in 2003.
Bought a 2007 S60 in 2009
Bought a 2013 XC60 last October.

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Car dealers hate me.

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That's easy. You leave out no variables in the equation. If our sales people couldn't handle that, we would find new ones.

A customer that does all the work for me is the greatest customer in the world.

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Car value is 100% of salary.

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Sweet baby Jesus.

Damn, my house isn't 13% of gross. I would say that is way too high, at least for me.

$1000 payment puts around 60k being financed at a low rate.

Buddy of mine just graduated. Might be making 60-65ish. Bought an Audi

Different strokes guys.

It's all about "disposable income". I use quotes because generally car payment is not disposable. But, if you are meeting savings goals, paying bills, etc, as long as cars are within disposable range and allow you to live comfortably, why not? It's your money. Enjoy it. Some people travel, expensive hobbies, have boats, skiing, thousand dollar hunting trips, etc.

I enjoy my vehicles. It's a form of entertainment for me. I probably spend more than most. Could I drive a beater? Sure, but life's short and I'll enjoy myself a little. As long as my car payments don't take away from my financial goals, it's fine.

I've never bought a new car in my life. I never will. Accelerated depreciation still means you are spending cash, either immediate, or deferred. .55 per mile, or whatever the rate is now, serves to a large degree the same purpose.

It's the contractor model. Never pay taxes. Buy a $70K dualie. And it also needs to be said, never have any money or a net worth in most instances.

My personal belief is that at some point one needs to save money, and making money means one has to pay taxes.

I'm different though. I live in a $100K dwelling that I didn't pay $100K for. A realtor or mortgage broker would try to explain to me how I could afford a place 20X more. I tend to not take financial advice from people who rarely succeed financially. This would include an above average percentage of realtors, mortgage brokers and contractors.

Just the way I do it. To each their own.