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re: What is the ratio of the price you paid for your car to your annual salary?

Posted on 3/16/15 at 12:17 pm to
Posted by GRTiger
On a roof eating alligator pie
Member since Dec 2008
63577 posts
Posted on 3/16/15 at 12:17 pm to
My annual car payments are about 4% of my gross income.

There should be a factor for how many years you drive it. This rule is entirely too simplistic. Cost of maintaining a beat up used car that complies with this rule would also need to accounted for.
Posted by LSUBoo
Knoxville, TN
Member since Mar 2006
101940 posts
Posted on 3/16/15 at 12:22 pm to
When you factor in how long I've had my car now, I'm easily under 10%/year with a $20K car over 10+ years... but that's not what this dude is advocating.

I guess I'll be getting a moped next and just praying that all the other drivers on the road see me and don't kill me.
Posted by KG6
Member since Aug 2009
10920 posts
Posted on 3/16/15 at 12:24 pm to
I feel that most people do spend a little out of their means on vehicles. I do think a family living off of $60k should probably be driving a sub $20k vehicle instead of the $40k+ Z71 that's in the driveway. But, this is just ridiculous. In the 150-200 bracket, I've got no problems paying for a Tahoe and a Jetta TDI. I still put 25% of my money into retirement and savings, and have a little left over to put in savings if I budget well. Being financially smart is one thing, but this is stupidity.
Posted by Tiger Ryno
#WoF
Member since Feb 2007
103331 posts
Posted on 3/16/15 at 12:29 pm to
My car payment is 0. So I have an infinite ratio.
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