How many months/years of gross income?
01-14-2008, 06:06 PM
#61
So many factors at play in this equation.
My rule of thumb which has served me well thus far is 20 percent of earnings on investments. Of course it took a long while before that amount meant I was able to spend anything worth spending, but I also ended up with better vehicles through patience.
The largest factor in my opinion is like any investment; buy low and as it relates to vehicles buy a car you can sell easily with minimal loss.
My rule of thumb which has served me well thus far is 20 percent of earnings on investments. Of course it took a long while before that amount meant I was able to spend anything worth spending, but I also ended up with better vehicles through patience.
The largest factor in my opinion is like any investment; buy low and as it relates to vehicles buy a car you can sell easily with minimal loss.
01-14-2008, 07:20 PM
#62
Registered User
Join Date: Apr 2005
Posts: 330
Likes: 0
Received 0 Likes
on
0 Posts
When I bought the S I felt that it was a really big purchase. At the time it was about 5 months' gross pay for me but my new job was kicking my butt and I knew I'd be looking for another job soon if I didn't let myself get the car and enjoy myself a bit. The work/life balance was seriously askew and the S helped me bigtime.
Less than four years later, I stuck with the job and now the S is about 2 months' salary. I've had buyers remorse for various things in the past when I realized years later how easily I could afford things that I used to scrape pennies together for. But I've never, ever felt that way about the S. Sure I could have waited and it would have made more sense financially, but I've already had years of priceless memories in my 20s with my dream car. I've had road trips, meets, tech days, warm sunny days, trips to the shore, taught myself to heel and toe, and had the occasional street encounter, met some great people, and had a blast doing it all. No money can buy that.
I'd do it again in a heartbeat.
Makes me sad to see it go...work is relocating me to Singapore for a minimum of 2 years on an expat assignment, so I only have a few months left with her!
Less than four years later, I stuck with the job and now the S is about 2 months' salary. I've had buyers remorse for various things in the past when I realized years later how easily I could afford things that I used to scrape pennies together for. But I've never, ever felt that way about the S. Sure I could have waited and it would have made more sense financially, but I've already had years of priceless memories in my 20s with my dream car. I've had road trips, meets, tech days, warm sunny days, trips to the shore, taught myself to heel and toe, and had the occasional street encounter, met some great people, and had a blast doing it all. No money can buy that.
I'd do it again in a heartbeat.
Makes me sad to see it go...work is relocating me to Singapore for a minimum of 2 years on an expat assignment, so I only have a few months left with her!
01-14-2008, 09:41 PM
#63
Registered User
Join Date: Aug 2004
Location: La Crescenta, CA
Posts: 1,590
Likes: 0
Received 0 Likes
on
0 Posts
debt-to-income.
your monthly debt obligations should not be over 40% of your gross monthly income. monthly debt obligation would include minimum credit card bills, utility bill, insurance, car payments, mortgage/rent, and any other loan/lines of credit (long-term debt).
i dont think there is a clear-cut answer to this question. you would have to narrow the question down a little further.
your monthly debt obligations should not be over 40% of your gross monthly income. monthly debt obligation would include minimum credit card bills, utility bill, insurance, car payments, mortgage/rent, and any other loan/lines of credit (long-term debt).
i dont think there is a clear-cut answer to this question. you would have to narrow the question down a little further.
01-14-2008, 10:54 PM
#64
Registered User
Join Date: Jun 2007
Posts: 809
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by CKit,Jan 13 2008, 11:09 AM
I'm not sure how much leases run these days.
But I saw Honda Pilot leases for $250 per month.
And the BMW 335 leases for ~$550 per month.
And I think 911 leases are around ~$1500-ish per month.
If you take someone who makes (net) $120,000 per year, that's $10,000 per month. You'd probably have to clear $170,000 gross to make that much net.
If you live someplace with a high cost of living, your mortgage might be $3000. If you live modestly, you might only spend $1500... leaving the extra $1500 for a Porsche.
Is that excessive? I don't know. But I know people with big fat mortgages on modest salaries. If that kind of thing isn't important to you, then I could see someone spending the difference on cars....
But I saw Honda Pilot leases for $250 per month.
And the BMW 335 leases for ~$550 per month.
And I think 911 leases are around ~$1500-ish per month.
If you take someone who makes (net) $120,000 per year, that's $10,000 per month. You'd probably have to clear $170,000 gross to make that much net.
If you live someplace with a high cost of living, your mortgage might be $3000. If you live modestly, you might only spend $1500... leaving the extra $1500 for a Porsche.
Is that excessive? I don't know. But I know people with big fat mortgages on modest salaries. If that kind of thing isn't important to you, then I could see someone spending the difference on cars....
01-15-2008, 06:11 AM
#65
Originally Posted by ashamouel,Jan 15 2008, 01:54 AM
3000 dollars is nothing in the bay area. Try closer to 4000-5000 =) (for moderate middle class home)
01-15-2008, 07:28 AM
#66
Registered User
Join Date: Oct 2004
Location: Westfield, NJ
Posts: 771
Likes: 0
Received 0 Likes
on
0 Posts
I think this is tremendously variable. For me, it's usually what I can afford to spend, while still having enough money to cover bills and discressionary spending. Currently, I could afford a payment that's about 40% of my monthly, without feeling like I was overdoing it.
01-15-2008, 07:35 AM
#67
Registered User
Originally Posted by Chris S,Jan 15 2008, 07:11 AM
Last weekend I stayed w/ friends who just moved to Redwood City. They're paying $4250/mo. in rent! Other friends pay about that mug for their mortgage in Sunnyvale. I must be crazy for even considering a move there.
01-15-2008, 09:27 AM
#69
No such thing IMO.
Most people I know waste an incredible amount of money on stuff like designer sweatshirts and starbucks. It all depends on your hobbies. I have very few hobbies and most of them result in positive cash flow (poker, pool, etc) so I can allocate a lot more money towards car shit.
Most people I know waste an incredible amount of money on stuff like designer sweatshirts and starbucks. It all depends on your hobbies. I have very few hobbies and most of them result in positive cash flow (poker, pool, etc) so I can allocate a lot more money towards car shit.
01-15-2008, 09:54 AM
#70
Originally Posted by S2020,Jan 14 2008, 03:32 PM
living on your own with a large student loan and saving for a house put a crimp on the balla lifestyle 
I wanted to wait on a house to get married but that didn't happen. (I could have settled but it would have ended in divorce, no thanks!) DINK is sounding killer. Someone who could cover about 40% of running the house would be very nice. I'd instantly be car shopping instead of having to plan and wait or I'd go ahead and get some work done on the house (remodeling) first. I was making 63k before I finished undergrad. During that time I had a cheap apartment with 2 detached garages. I saved 12% in 401k, kept a few grand in savings and had fun with the rest. I don't think a month went by that I didn't buy motorbike parts. I was driving a RSX Type S (33% of salary) paying like $600 and some change for an apartment, I mean I had plenty of $ to blow. I'd drop $50 at the hotspots downtown every Fri/Sat night without batting an eye.
It was fun, shit changes when you buy a home.
Now I make more $ and still wouldn't buy a car over $40k, and wouldn't do that without at least $10k down. $500-550 a month car payment is as high as I'll go.