Ideally, if you don't feel like paying for everything in cash, how much should you spend on a car? What percentage of your total yearly income is ideal?
>>28975555Car people don't generally make financially sensible decisions when it comes to cars. They either hoard a couple of $5k-$8k used cars which were all purchased cash, or they overextend and spend 40% of their annual on car payments and insurance because they just HAD to have a Porsche or a buck tooth M3.The answer you're looking for is ideally no more than 10-15% of your annual take home.
>>28975555My rule of thumb is that it shouldn't be more than you could reasonably pay off in one year if you had no other bills or expenses but the car market is far shittier now so take that with a grain of salt.
>>28975572>10-15%Does that include fuel, insurance, maintenance?
dont read dont care but im so fucking hard right now
>>28975581Ideally yes, but that's pretty difficult if you're earning like $50k a year or something. At that level you should probably buy cash, but if you absolutely have to finance I would not go more than 20% for the payment, insurance, fuel and maintenance.At the end of the day, transportation shouldn't be a major financial burden that makes you feel like you have to sacrifice your standard of living to afford it.
>>28975581Just payment. There was that one anon in another thread who only made like 150k a year blowing 3200 a month in a fucking Porsche which is retarded.
>lust provoking image>irrelevant time wasting question
bout three fiddy
>>28975555It doesn't just depend on your income but on your current savings. Too many people buy cash, draining all or most of their savings, when honestly financing it at 6.5-7.5% and getting 20% from some basic index fund has been incredibly lucrative for several years now. Plus then you have savings in case of an emergancy. Not saying the market will continue to grow like this, just consider the opportunity cost to such a large cash payment.
>>28975605>only $150koh, I didn't know /o/ was the millionaire board
>>28975648That kind of interest rate seems insane to me. If you have good credit, you should be able to obtain a lower interest rate loan.
"If you can't buy it 3 times you can't afford it"-Birdman
>>28975657unfortunately these days, pulling from Experian, the US national average sits at 6.9(nice)% for new cars and 10.4% for usednow keep in mind that is just the averageif you're credit is good and you have membership at a good credit union you can get rates low as 4.6% on top of dealership specials like Volkswagon trying to sell Atlases by offering rates as low as 1.9% but for 60 monthsbut the days of being to get a 3% APR for simply having credit not in the shitter seems to be overpersonally I can't seem to find an APR better than 6% for cars I'd actually want and that's with a credit union and a pretty good (albeit not perfect) credit score
>>28975572>They either hoard a couple of $5k-$8k used cars which were all purchased cash,Why do you know me so well?
>>28975657Then my point is even more valid. Finance and invest.
>>28975555Less than 15% of your actual cash take home. And that includes insurance.
>>28975604well $50k IS just about the national average take-home if not slightly above average, even
>>28975656$150,000 a year is not very much if you're dumping $3,000 a month on a Porsche.
>>28975723Indeed. That's why I bought my car cash.My brother went the other way and is financing a BMW he can't really afford for the next 72 months. It's pretty sweet.
>>28975723It’s $80k for college graduates.
>>28975723Yeah the real median pay in this country is something like $22-23.50 an hour, maybe a little less if we cost control for the wildly different areas. A line chef making 28 in san fran and a pothole filler making $11 in kentucky aren't really typical representations.
>>28975648>index fundsJews and boomers sure are shilling those a lot.Every other YouTube video is also shilling hard.Sounds like they want their house of cards to stand a bit longer before they can rug pull everyone.Remember, the rich have absolutely no incentive to let you make money for any reason whatsoever.
>>28975555What's your budget look like?What kind of financial goals do you have? Are you also saving up for a down payment on a house? Are you currently paying a mortgage?Large financial decisions should not be made in isolation.Write up your current budget, tallying up your income and expenses, and then write up a target budget that supports your goals.If your rent is taking up 50% of your income, then obviously the amount you can spend on a car will be less.
>>28975555The car should be 20%-30% your yearly take home with a 3 year loan.
>>28975895On paper I gross 13792 a month. Mortgage is 2500, bills and shit always end up being around 5.5k, so 8000 minus gives me around 5800 a month in free income. But there's always something coming up.
>>28975742I don't think that's the "take home"...I make $100k and only take home ~$60k after taxes.
>>28975924We asked for dollars not rupees
Jesse, we need to cook!
>>28975967I'm not going to date time stamp my paystubs to prove shit to some aut/o/stic.
>>28975992You're describing such a setup that it seems insulting to be asking 4chan for fucking financial advice.
>>28975994Not everyone on /o/ is a pleb. Some of us are middle or upper middle class.
>>28975572>>28975601My take home is about $130k. So you're saying the maximum I should spend on a car is $20k/yr? That's $1666/month. That's ridiculously high. What am I missing?
>>28975999>That's ridiculously high. What am I missing?>That's ridiculously high.Same can be said about your take home. That's what you're missing.
>>28976003I guess it depends on your perspective. I live in an expensive city. A decent 1 bedroom here is about $3500/month.
>>28975677I just got a 2025 car at 3.7%
>>28975924In that case, I think you could comfortably budget using 30% of your free income for the car payment (on a 3yr loan).
>>28975555bros, how do i get a gf?
>>28976020Talk to women.There's only a couple more steps after that, but come back after you accomplish this one and we can discuss further.
>>28975996People just need to tell themselves anyone that isn’t a wagie is a liar. I’ve been on since 2004 and I’m an attorney in my mid 30s now. I’m not making $60k.
>>28975992I will. The actual advice given here by high earners gets laughed off by people making 1/5th their income. People can be crabs in buckets.>>28975555It depends on your income. Spending 20% of your monthly take home on a car when you take $3,000 a month is risky, doesn't leave a lot of room after rent, food etc. But spending 20% of your take home when you're bringing in $10-$12k+ a month is completely different. Still allows you to save thousands after all your other bills. A percentage based rule doesn't work for all incomes.
>>28976411I pray that you're a doctor and not the attorney.
>>28976411>45% taxJesus ChristI hope they had the decency to buy you dinner before bending you over like that.
>>28976411my first paycheck when I got a raise to 175k/y had me crying at the amount of tax that was taken out., then my friend showed me what making 400k a year on the books looked like. It only gets worse unless it's your own business, which pretty much maxes out at 30% on profit and then writeoffs make it come down depending on what you can swing.
Today I will remind them
>>28977620Nice. If I can include passive income, I can get a Civic. Yay.
>>28975555max 2k cash and max 2001 model
>>28977620Need to make 250k to buy an f1shitty lmao do accountantcels really
>>28976456As an attorney a lot of my comp is in my bonus. My take home per check right now is around $8k but it’ll jump to over $10k pretty soon when I cap my 401k. But last year my bonus was $180k.
>>28977620this is bait right? a tesla model Y is the same price as a high trim accord. why is it in the top category?
>>289759245.5k on "bills and shit" is absurdely wasteful
>>2897555510% -15% seems to be the maximal that isn't painful. I've spent about this much on my car when I've been on three different income levels.>$2,000 monthly w/ $245 car payment>$2,400 monthly w/ $340 car payment$3,800 monthly w/ $405 car payment1st was short term 18 month used car loan, C2302nd was a CPO 60 month loan no down payment Hyundai Azera, should have not done it3rd was a new car 48 month loan, $5k down payment, VW JettaI make $5600~$6000 per month now and simply am going to keep the new car (Jetta) simply because it gets 40mpg and I like it as a daily. I put money from each paycheck into 4%-6% interest certificates of deposit and ladder them so some mature at specific times and I use those as my money for buying fun cars or just as non essential/re-investment bucks. Used that to get an XJS project car and plan to use the future batches to get an extended warranty diesel BMW. Will probably relegate the Jetta to a backup car when it hits 200,000 miles. Huge anime tits to keep with thread theme.
>>28978395>my bonus was $180k.Jesus Christ.My comment was commentary on compensation [not] being relative to the benefit to society. I'm sure you busted your ass learning tons of boring shit that most people don't give a fuck about, so it makes sense you're getting paid well. I get it. Sometimes it just really sucks: insurance, real estate, financial advisors... things like really grind my gears.
>>28978586If it makes you feel better a part of my work is helping victims of terrorism get just compensation for their suffering. It isn’t all just protecting big corporations.
>>28976020Treat them like regular people and show genuine care when it comes to their plights. That's how the Commander's got every Nikke hot and bothered.
