Is there any websites that can help you with this kinda stuff. I'm looking at a BMW 330xi with leather and need to know what's recommend etc etc.. so i won't drive myself into the poor house
thanks ATOT
thanks ATOT
how much should i be making to afford a $38,635 car
- Thread starter Davegod75
- Start date
Depends what your other expenses are? Single? Married? 4 or 5 kids? Divorced? Home owner? Are you in debt now?
I had a more expensive car relatively when I was in HS than I do now because I didn't have any other expenses. It's all depends on your personal situation, that's why I don't think you'll find an easy table telling you what you should be making to afford a car like that.
If it helps you any, I think BMW aims this car at Yuppies in their late 20's and 30's. $60K a year++?
Sal
I had a more expensive car relatively when I was in HS than I do now because I didn't have any other expenses. It's all depends on your personal situation, that's why I don't think you'll find an easy table telling you what you should be making to afford a car like that.
If it helps you any, I think BMW aims this car at Yuppies in their late 20's and 30's. $60K a year++?
Sal
it really depends on your disposable income, what your current obligations are in terms of payments per month and how much debt you are in.
ouch. Do me, do me. I make $30k/year, have school payments of around $2000/4X a year ($8k yearly), another $6k left on my truck, $6370 yearly car insurance rates (at the moment...probably going up REAL soon), and...small credit card bills. No kids..no wives..i really don't buy too much food. Still living with my parents.
-=bmacd=-
uh what do you mean?? do me? WTF. I'd say a little over 100k a year because unless your some kind of crazy guy you usualy wont buy that expensive a car before you have a nice house almost completely paid off....
Mr.IncrediblyBored
Lifer
- Jun 18, 2000
- 11,191
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Exactly. I'm 19, but I still live at home, and have very few expenses. In fact, I could probably afford up to 30% of my monthly income and still have money left to save.
- Oct 28, 1999
- 62,484
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General opinion based upon experiences.
No really, it's completely situationally dependent. If you live with your parents or have extraordinarily low living expenses, then you could probably stretch it up to 25% of your income.
I personally don't like to stretch myself too thin.
I've got 25% of my income going to my mortgage
12% going to car payments
30% going into long term savings
5% going into student loans
the remaing amount is broke down into utilities, insurance, short term savings, and spending cash.
Hmmm, the payments on my 2001 Accord are 10% of my monthly net and I really wouldn't want to spend much more. There are many things you can use money for...like mortgages.
I had bought a new 97 Civic EX right out of college and the car required exactly 15% of my net income to finance. On hindsight, it was too much.
As a general rule of thumb, divide your income by 3 and that's the kind of car you should look at. A $38,635 car is "appropriate" for somebody making $100-125K.
my monthly payments are between 25-30% my monthly income... but i don't mind at all.. it's fine.
well this is assuming you live an ordinary life style. If you buy a crap 3000$ car and save up yer money for a year or two you can make a good enough downpayment on the car to make it affordable.... Thats what I meant by crazy, I know people who dremt of having stuff like that and saved up for years like this.
Vic
Elite Member
- Jun 12, 2001
- 50,422
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How much are you putting down?
If you're not putting anything down, $38,635 for 60 months at 5.9% (AFAIK, BMW doesn't offer those great super-low interest deals, so I'm totally guessing as to the rate, but 5.9% would be an amazing rate at a bank for new car right now) is $745.13.
If you have a house payment of (let's say) $1,200 month, you'd need to make at least $50,000 a year and that would leave you with little to nothing left over for savings, retirement, or emergencies and only $500/mo. for miscellaneous/entertainment spending. If you don't own a house and you're looking at this car, I would strongly suggest that you get your priorities in order.
Personally, I'd recommend making no less than $75,000 a year if you want to comfortably afford this kind of payment.
edit: btw, most banks would require that the total of your monthly expenses not exceed 45% of your gross monthly income. For example: $1,200 (house) + $745 (car) + $150 (credit cards, just throwing out a number here) = $2,095 / 45% = ~$4,655 * 12 = $55,866/yr.
If this is what your financial situation is like, this is the kind of income you will need in order to qualify unless you have very positive compensating factors like AAA credit score (720 plus) or excellent liquid assets (>$10k liquid).
< -- loan officer
If you're not putting anything down, $38,635 for 60 months at 5.9% (AFAIK, BMW doesn't offer those great super-low interest deals, so I'm totally guessing as to the rate, but 5.9% would be an amazing rate at a bank for new car right now) is $745.13.
If you have a house payment of (let's say) $1,200 month, you'd need to make at least $50,000 a year and that would leave you with little to nothing left over for savings, retirement, or emergencies and only $500/mo. for miscellaneous/entertainment spending. If you don't own a house and you're looking at this car, I would strongly suggest that you get your priorities in order.
Personally, I'd recommend making no less than $75,000 a year if you want to comfortably afford this kind of payment.
edit: btw, most banks would require that the total of your monthly expenses not exceed 45% of your gross monthly income. For example: $1,200 (house) + $745 (car) + $150 (credit cards, just throwing out a number here) = $2,095 / 45% = ~$4,655 * 12 = $55,866/yr.
If this is what your financial situation is like, this is the kind of income you will need in order to qualify unless you have very positive compensating factors like AAA credit score (720 plus) or excellent liquid assets (>$10k liquid).
< -- loan officer
Well lets see.
1. Take your monthly income, after taxes and expenses (rent, utilities, etc...).
2. Figure out how much your monthly car payments will be (www.bmwusa.com has a payment calculator you can use).
3. Figure out how much your car insurance will be (www.progressive.com can give you an idea).
Subtract 2 and 3 from 1. See if that is sufficient to live off of for a month.
I have a friend who recently got a BMW 330 (don't remember exactly which one). But between all the payments, huge increase in insurance, he has very little spending money left over.
So be careful.
1. Take your monthly income, after taxes and expenses (rent, utilities, etc...).
2. Figure out how much your monthly car payments will be (www.bmwusa.com has a payment calculator you can use).
3. Figure out how much your car insurance will be (www.progressive.com can give you an idea).
Subtract 2 and 3 from 1. See if that is sufficient to live off of for a month.
I have a friend who recently got a BMW 330 (don't remember exactly which one). But between all the payments, huge increase in insurance, he has very little spending money left over.
So be careful.
ok here we go:
Single
I Rent
No debt
Excellent credit
car Insurance now is only $85/month
monthly i pay for food/utilities/cable/phone/internet
that's it
Single
I Rent
No debt
Excellent credit
car Insurance now is only $85/month
monthly i pay for food/utilities/cable/phone/internet
that's it
whoa! over $6k a year in auto insurance???? you probably need to age another 8-10 years, get married to bring it down.
that hurts...
I don't think anyone can just say you need this amount of money per month/year to afford the car.
It all depends on the factors I posted above (and others have posted).
Personally, I won't finance more than half my yearly salary pre-tax.
It all depends on the factors I posted above (and others have posted).
Personally, I won't finance more than half my yearly salary pre-tax.
okay I hope you know that your car insurance will go up astronomically if you buy this car......(what kinda car do you drive?) also what kind of salary do you make? what are your rent payments like? what kind of downpayment can you put down on the car? what are your monthly living expenses?
Also dont forget maintenance,repairs,insurance,gas and the chance of your car getting stolen will all go up dramatically if you buy a BMW. I would suggest thinking of a house before buying a 40 000$ car....
Also dont forget maintenance,repairs,insurance,gas and the chance of your car getting stolen will all go up dramatically if you buy a BMW. I would suggest thinking of a house before buying a 40 000$ car....
Vic
Elite Member
- Jun 12, 2001
- 50,422
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I don't care how much you make, you seriously should not buy that nice of car if you rent. Buy a house first.
Unless there is some kind of financial reason you need a car that nice, like you work in some type of high-profile sales position in which a nice car like that is a business investment which can increase your income, it would be a waste of money and will only put you in debt and possibly harm your credit. Especially if it's just to drive to work or your GF to the movies.
Until then, look at some nice ~$20,000 cars, like Hondas, Nissans, or whatever brand you like. Just something reasonable, comfortable, and reliable.
edited: typo
we'll i'm only 22 so i'm not buying a house.
Being practical i know i should stick to a 20-25 car but i'm obsessed with the 3 series beamer. I've done the payment calculator and I would putting up a huge down payment to lower the payments to 500/month.
Being practical i know i should stick to a 20-25 car but i'm obsessed with the 3 series beamer. I've done the payment calculator and I would putting up a huge down payment to lower the payments to 500/month.
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