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re: Is buying a $24k car on $50k salary dumb?
Posted on 3/10/15 at 8:32 pm to Brightside Bengal
Posted on 3/10/15 at 8:32 pm to Brightside Bengal
quote:
Is buying a $24k car on $50k salary dumb?
yes
0
Posted on 3/10/15 at 8:36 pm to Brightside Bengal
What's the difference of he is spending $24k regardless? I bought new, but my company also foots the bill. Now it's still money out of my pocket, but it's moeny that was designed for a car purchase in the first place. My opinion is if he is going to spend the $24k no matter what, get a new Honda or Ford over a Used BMW or Mercedes.
Posted on 3/10/15 at 9:08 pm to Brightside Bengal
I'm about to buy a 23k car and it's killing me. Absolutely killing me. And if history is a guide, I'll drive it for ten years. So my cost of ownership is really low spread out over time. And it's still killing me. I had no problem spending 50k on a car for Mrs Pimp. I just hate to buy something for myself.
Posted on 3/10/15 at 9:09 pm to Double Oh
quote:Does the $75 a month difference make that much of a difference to this ridiculous board?
Very dumb. Go get a 10-15K vehicle and when your are financially stable then go for a bigger purchase.
Op, that amount should be fine. Your note will be around $375 a month, which is not bad for your income at all.
Posted on 3/10/15 at 9:30 pm to Brightside Bengal
I'd buy a new 24k vehicle if I had a 50k salary, but wouldn't buy a 5 year old 24k vehicle.
Posted on 3/10/15 at 9:33 pm to Brightside Bengal
quote:
I've read some websites that say don't spend more than 20% of your annual salary on a vehicle. I've read others that talk about not spending a certain percentage of your take-home monthly income on car expenses
Of course, these are simply quick-and-dirty rules of thumb. Not bad ones but your situation may be different. Besides, buying new can be perfectly fine if you are willing to drive it into the ground before replacing it. You can get a new Jetta for about that much and expect it to last 300k miles if you take care of it, that isn't a bad buy at all.
The #1 rule when you're making $50k is to buy what you need, not what you want. Everything else comes second.
Posted on 3/10/15 at 9:34 pm to lsupride87
Cost of ownership should include maintenance. Go check that out. Oil changes, regular maintenance, and potential repairs. Or better yet, why not price tires. I'll bet it's got a nice Tire Pressure Monitoring System. Can't wait to see you realize all of the ridiculously expensive costs to maintain it will be.
Set yourself up for succes. Buy something around $15-20K, put your note at less than $300 and spend your money or travel, gadgets and going out or doing instead of tying up more of your discretionary income in a status symbol.
Swallow your vanity for a few years.
Set yourself up for succes. Buy something around $15-20K, put your note at less than $300 and spend your money or travel, gadgets and going out or doing instead of tying up more of your discretionary income in a status symbol.
Swallow your vanity for a few years.
Posted on 3/10/15 at 9:39 pm to Brightside Bengal
Depends on other savings IMO. If you aren't saving 15-20% for retirement, etc, I would spend $10k and bank the rest. Plenty of time to get a nicer car in a few years.
If you're already doing this, carry on.
If you're already doing this, carry on.
Posted on 3/10/15 at 10:05 pm to Brightside Bengal
quote:
$24k seems reasonable to me for a vehicle. It would be a 5yo german car with 50k miles.
Prayers sent. $24K on a new economy car would be smart. On a 5 year old money pit, not so smart.
Posted on 3/10/15 at 10:12 pm to Brightside Bengal
F the haters, buy it. It's a 5 year old car. This isn't 1980 where it's going to fall apart. It's 5 years old and has held it's value for a reason. And extremely low miles.
As someone pointed out, you're looking at a ~$400 note.
I do agree that you should be maxing out your 401k and have an emergency fund. But after that, you should have enough in your take home income to easily cover this.
As someone pointed out, you're looking at a ~$400 note.
I do agree that you should be maxing out your 401k and have an emergency fund. But after that, you should have enough in your take home income to easily cover this.
Posted on 3/10/15 at 10:37 pm to lsupride87
quote:
Does the $75 a month difference make that much of a difference to this ridiculous board?
Lets say you do that and change cars every 5 years, beginning at age 25 - if you'd invested that $75 a month, instead of wasting it on a car note you absolutely could have avoided - at age 65, that's about $150k (assuming 6% yield on the invested money for 40 years).
Is $150k that big of a difference in your retirement package at age 65? Will that be the difference in being able to retire at 65 or working until 70 or beyond?
You tell me.
(And decisions like this compound - the same can be said for the guy who buys a Starbucks latte 4 times a week, etc. - about the same amount of money. If he was brewing his own coffee for a fraction of that, etc.)
This post was edited on 3/10/15 at 10:38 pm
Posted on 3/10/15 at 10:54 pm to Brightside Bengal
quote:
As in buying any german vehicle is a bad decision? If no, what is a more appropriate range on a german car?
Japanese. Toyota. I don't think 24k is that unreasonable. Having said that, you should be getting a new or damn new car for that money at your income. Don't be that guy that buys a 5 year old 5 series just in time to shell out 2-3k a year for repairs
Posted on 3/10/15 at 11:30 pm to TigerDeBaiter
Its a 2010 Audi A5. The oil consumption issues are being fixed on this vehicle as we speak, but I havent made any agreement to buy yet.
Posted on 3/10/15 at 11:33 pm to Brightside Bengal
I was being a bit overdramatic about 2-3k per month, but I'd seriously consider something with lower maintenance. I've had three toyotas and never paid for a major repair.
Knock on wood...
Knock on wood...
Posted on 3/10/15 at 11:43 pm to Brightside Bengal
I read an article last month that said that Audi's upkeep kicks in heavily during the 4th year.
There are good cars out there for $12,000 or even less.
There are good cars out there for $12,000 or even less.
Posted on 3/10/15 at 11:49 pm to Brightside Bengal
I have a 7 year old German car I'll let you have for 15k it only has 103k miles.
Posted on 3/11/15 at 12:05 am to RebelExpress38
quote:
I have a 7 year old German car I'll let you have for 15k it only has 103k miles.
Does it rhyme with Jokeswagon?
Posted on 3/11/15 at 2:07 am to Brightside Bengal
The car is out of warranty. Repairs won't be cheap and they will be needed. Have you priced what a set of tires will cost you? On my Audi it's over $1.2k installed.
Posted on 3/11/15 at 5:33 am to Brightside Bengal
What's more important to you? You can impress your friends or get started financially securing your future. Pick one.
I'm double your salary and wouldn't dream of spending that much on a depreciating asset.
But if that is what is important to you, then I don't consider it dumb. Everyone had different priorities.
I'm double your salary and wouldn't dream of spending that much on a depreciating asset.
But if that is what is important to you, then I don't consider it dumb. Everyone had different priorities.
Posted on 3/11/15 at 5:37 am to Brightside Bengal
OP, do whatever the frick you want to do. It is necessarily the smartest thing, no.... But if you have the money and are able to continue contributing to your retirement and paying all of your other bills, do it.
Some people throw hundreds of dollars away each month going to bars. If this is your vice, so be it. As long as you aren't taking away from your retirement and other, more important needs, do it. Do what makes you happy. You only live once and its not guaranteed that you will see all the money you saved making sacrifices now.
Again, I am only saying to do it IF you have have no other major bills, you have 6 months of living expenses in an emergency fund, and you are able to put a substantial amount towards retirement.
If shite hits the fan or if you regret the decision, you will be able to sell that Audi and take a minor hit in depreciation.
Some people throw hundreds of dollars away each month going to bars. If this is your vice, so be it. As long as you aren't taking away from your retirement and other, more important needs, do it. Do what makes you happy. You only live once and its not guaranteed that you will see all the money you saved making sacrifices now.
Again, I am only saying to do it IF you have have no other major bills, you have 6 months of living expenses in an emergency fund, and you are able to put a substantial amount towards retirement.
If shite hits the fan or if you regret the decision, you will be able to sell that Audi and take a minor hit in depreciation.
This post was edited on 3/11/15 at 5:42 am
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