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What percent of your household salary are you willing to spend on a vehicle?
Posted on 12/19/20 at 8:20 pm
Posted on 12/19/20 at 8:20 pm
I have noticed a ton of the 2021 Yukon Denalis and Z71 Tahoes rolling around my Louisiana town lately. The dealerships aren’t really taking any money off these vehicles so everyone’s paying about $90k with TTL.
What’s your rule of thumb, 10%, 15%, 20% or more of your household salary?
I think I like to keep it around 20% but that means you would need to make $450k in household income to comfortably buy this vehicle. Maybe there’s more people making $500k+ a year in this state than I originally thought.
What’s your rule of thumb, 10%, 15%, 20% or more of your household salary?
I think I like to keep it around 20% but that means you would need to make $450k in household income to comfortably buy this vehicle. Maybe there’s more people making $500k+ a year in this state than I originally thought.
This post was edited on 12/19/20 at 8:30 pm
45
Posted on 12/19/20 at 8:22 pm to TitleistProV1X
Drive crappy used cars. I'm early in my career and it's a dumb investment at this time for me. Mine are paid off
Posted on 12/19/20 at 8:22 pm to TitleistProV1X
However much fits into 120 payments baw.
Posted on 12/19/20 at 8:22 pm to TitleistProV1X
Monthly payment or total value of vehicle? These ratios are going to be useless but 
Posted on 12/19/20 at 8:22 pm to TitleistProV1X
Less than 50% of annual salary - ie i wouldn't spend more than 40k on a vehicle making 80k per year
Posted on 12/19/20 at 8:25 pm to TitleistProV1X
People don’t look at it in terms of annual salary vs total cost of vehicle.
They care about monthly take home v monthly payment. That’s why we now have 84 month finance options.
They care about monthly take home v monthly payment. That’s why we now have 84 month finance options.
This post was edited on 12/19/20 at 8:39 pm
Posted on 12/19/20 at 8:28 pm to lynxcat
quote:
Monthly payment or total value of vehicle?
Personally I have never worried about what it would cost me per month. Only worried how much the car costs me total and what my average depreciation will be on it per year.
Posted on 12/19/20 at 8:28 pm to TypoKnig
Mine is paid for. My wife's note is 5% of our takehome pay
Posted on 12/19/20 at 8:30 pm to TitleistProV1X
I don’t think of it that way.
The cost of a vehicle is what it is.
I have a company-supplied vehicle, Mrs Füt (no pics) has a Lexus NX, we can keep a Lexus a loooong time.
It becomes effectively around $5k per year if you keep a vehicle that costs $40k for 8 years.
The cost of a vehicle is what it is.
I have a company-supplied vehicle, Mrs Füt (no pics) has a Lexus NX, we can keep a Lexus a loooong time.
It becomes effectively around $5k per year if you keep a vehicle that costs $40k for 8 years.
Posted on 12/19/20 at 8:30 pm to TitleistProV1X
This is my opinion only and life experience: spending more than $50,000 for a vehicle escalates diminishing returns most can’t afford to overlook.
We paid $40K and $48K, that’s TTL.
We paid $40K and $48K, that’s TTL.
Posted on 12/19/20 at 8:32 pm to TitleistProV1X
quote:
TitleistProV1X
Life is too short for these rules, get what you want to this time, be more conservative next time. Life needs ebbs and flows.
Posted on 12/19/20 at 8:34 pm to TitleistProV1X
I make about 500. Just bought one. Still made me cringe.
Posted on 12/19/20 at 8:38 pm to TitleistProV1X
If you can't pay for in cash, you can't afford it.
Posted on 12/19/20 at 8:40 pm to NorthEnd
quote:
I make about 500. Just bought one. Still made me cringe.
$500k a year with or without kids IMO that is a reasonable amount to spend.
It takes about $440k a year in income to be in the top 1% of income earners in this state. Unless you’re making that kind of money year after year I just can’t imagine spending that type of money on a depreciating asset.
quote:
If you can't pay for in cash, you can't afford it.
I partially agree with this. You should definitely have at least $100k that you can access this week if you’re looking at spending $90k on a car. However, interest rates are so low that you’d be an idiot to purchase any vehicle with cash these days. Make 7-10% a year in the market and let the bank finance your purchase.
This post was edited on 12/19/20 at 8:43 pm
Posted on 12/19/20 at 8:41 pm to TitleistProV1X
Unless I’m a multi-millionaire, there’s no fricking way I’m spending 90k on a fricking vehicle that’s not a vintage muscle car.
Posted on 12/19/20 at 8:41 pm to TitleistProV1X
(no message)
This post was edited on 12/18/21 at 11:38 am
Posted on 12/19/20 at 8:44 pm to DiamondDog
1% in Louisiana
Article was written in October this year
Article was written in October this year
Posted on 12/19/20 at 8:46 pm to TitleistProV1X
Farm pays for my truck. Payment on my wife’s car is about 7% of our gross monthly income.
Posted on 12/19/20 at 8:53 pm to TitleistProV1X
Under 5%. Currently sitting at 1.8% after years with no notes.
Posted on 12/19/20 at 8:56 pm to billjamin
Gross. Two vehicles we at 5% gross.
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