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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 3:19 pm to hikingfan
Posted on 3/16/15 at 3:19 pm to hikingfan
That's absurd. Maybe no more than 1/10th of your annual income towards the annual sum of the monthly notes...but not a maximum of 1/10th of annual income toward the purchase price. As others have pointed out, is a couple with $150K joint incomes suppose to limit themselves to a $15K vehicle cost between the two of them? That's ridiculous. Actually, I would contend that any such affordability formula is totally worthless. How much one can afford depends on a variety of factors....amount of income, stability of that income, and the total of all other monthly liabilities., i.e., house note, student loans, Catholic school tuition, car insurance premiums, fuel costs, etc, etc. Anyone who makes a car purchase decision solely on the basis of his/her gross income is headed for trouble.
1
Posted on 3/16/15 at 3:39 pm to Wes Wegan
It's definitely saying 1/10th of annual gross income in annual car payments. So Your monthly car payment should be no more than ((Gross Annual Income/10)/12).
7% here
7% here
Posted on 3/16/15 at 4:26 pm to LSUSPARKY621
This quote is from the article
quote:
The 1/10th rule for car buying is simple. Spend no more than 1/10th your gross annual income on the purchase price of a car. If you make the median per capita income of ~$42,000 a year, limit your vehicle purchase price to $4,200 if you must buy one.
Posted on 3/16/15 at 4:34 pm to ILikeLSUToo
quote:
Financial gurus suggest you live most of your life in poverty and hope you're alive long enough to enjoy retirement.
Exactly.
Regardless, I pay cash for the cars I drive now. My current truck is a 2005 Avalanche with 180,000 miles - I paid 3k for it. It's nice enough for me I suppose.
The wife on the other hand? 2013 Jetta TDI, granted we got it for 17k last year (financed). So all in all, 20k for both our vehicles.
Posted on 3/16/15 at 4:35 pm to hikingfan
0.06
Posted on 3/16/15 at 4:39 pm to hikingfan
Stupid as frick
Posted on 3/16/15 at 4:40 pm to LSUSPARKY621
quote:
It's definitely saying 1/10th of annual gross income in annual car payments.
did you read the article? Still definite about that?
quote:
The 1/10th rule for car buying is simple. Spend no more than 1/10th your gross annual income on the purchase price of a car. If you make the median per capita income of ~$42,000 a year, limit your vehicle purchase price to $4,200 if you must buy one. Absolutely do not go and spend the median car price of $24,000!
Posted on 3/16/15 at 4:43 pm to hikingfan
About half.
I make 65,000 and my truck was 31,000 off the lot brand new.
I make 65,000 and my truck was 31,000 off the lot brand new.
Posted on 3/16/15 at 4:44 pm to hikingfan
1/2
Posted on 3/16/15 at 5:03 pm to hikingfan
(no message)
This post was edited on 2/17/16 at 2:49 am
Posted on 3/16/15 at 5:09 pm to hikingfan
I paid more for my current vehicle than I make in a year 
Posted on 3/16/15 at 5:40 pm to hikingfan
$50,000 @10% =$5,000/yr($416/month), 5yr note =$25,000 sticker price?
$100,000 @10% =$10,000/yr($833/month), 5yr note $50,000 truck, etc?
I guess that's okay, prior to the multiple car argument...
ETA: that's before interest
$100,000 @10% =$10,000/yr($833/month), 5yr note $50,000 truck, etc?
I guess that's okay, prior to the multiple car argument...
ETA: that's before interest
This post was edited on 3/16/15 at 5:42 pm
Posted on 3/16/15 at 5:51 pm to SECdragonmaster
$195,000 - $19,999 chevy Silverado used 2009.
Posted on 3/16/15 at 5:52 pm to hikingfan
2.8 for me
Posted on 3/16/15 at 5:54 pm to hikingfan
1/6 when purchased... 1/9th now
Posted on 3/16/15 at 5:55 pm to Phat Phil
0-25,000 catch a ride with a friend
On what his scooter?
On what his scooter?
Posted on 3/16/15 at 5:55 pm to Gorilla Ball
quote:
$195,000 - $19,999 chevy Silverado used 2009.
I still think a vehicle shouldn't cost more than $30,000 - it just shows how seldom I buy a car and how delusional I am about how much they cost.
Posted on 3/16/15 at 6:09 pm to Cold Cous Cous
and he has totally disappeared. He just wanted to get people to go to the site.
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