If a car requires you to spend 75% of your income to pay for it, you obviously can't afford it correct?

[ebaycj]

Seriously, How much do you make, $500 / month (net) ?

If so, GET A REAL JOB !

 

[mrchan]

If you live at home, have no other expenses and make $600/month working part time, then $450/month for a shiny new car isn't teeeeeeeeeeeeeeeeeerrible, if you really want it.

 

[ebaycj]

Originally posted by: mrchan
If you live at home, have no other expenses and make $600/month working part time, then $450/month for a shiny new car isn't teeeeeeeeeeeeeeeeeerrible, if you really want it.

This is wrong.

 

[IceBergSLiM]

the answer i think is tha tif you can afford the payment, insurance and gass and still maintain your current lifestyle and pay your other bills on time then yes you can afford it.

 

[TheSlamma]

Originally posted by: Captante

Originally posted by: Dacalo

Originally posted by: Staples
That is right. That is why I drive a 95 and I probably will never buy a new car.

$150 a month vs $500 a month is a lot of money.

You are paying monthly on a car that is 11 years old?

I think thats just the average maintenance cost monthly on his '95 car.

I think that is what he means exactly. I have a 95 Prizm and I would say between insurance and my gas (I drive 40 minutes 1 way to work) that $150 sounds about right.

The $500 he's talking about for a new car is going to be econobox to boot. I know people with SUV's paying over $400 just for the vehicle, $200 a month in gas, over $100 in insurance and the plates are off the hook. I think my tags were $27 this year?

To these people who buy new cars on payments and think they look hot.. the one I envy is your BANKER. He is off making a killing while you are in a depriciating product. When it all ends he's got free money and you have a vehicle not worth a damn to sell.

 

[Mo0o]

Do you have any other financial responsibilities?

 

[BigToque]

I actually just realized I screwed up my math. Everythign combined is ~50% of my net income per month.

That's still a lot though.

I'm gonna look into buying a 2004.

 

[buzzsaw13]

Originally posted by: tfinch2
LOL, I wish my GF's brother believed me when I told him this. About 80% of his income is going to go towards his car for the next 6 years (how long he financed it for, payment + insurance), and will perhaps keep going up if he keeps getting tickets.

And of all cars, it's a 2005 Aveo. HAHAHAHAHAHA

The Aveo part made me laugh

Though if he loses his job, car=screwed.

 

[DrPizza]

Originally posted by: Captante

Originally posted by: Dacalo

Originally posted by: Staples
That is right. That is why I drive a 95 and I probably will never buy a new car.

$150 a month vs $500 a month is a lot of money.

You are paying monthly on a car that is 11 years old?

I think thats just the average maintenance cost monthly on his '95 car.

That's pretty high just for maintenance...

I'm guessing the OP should probably work at getting more customers on his paper route... that would bring it down to 60% of his monthly pay.

Oh, and me: 3 cars + insurance + gas is less than 10% of the combined gross income of me and my wife.

 

[BigToque]

Originally posted by: DrPizza

Originally posted by: Captante

Originally posted by: Dacalo

Originally posted by: Staples
That is right. That is why I drive a 95 and I probably will never buy a new car.

$150 a month vs $500 a month is a lot of money.

You are paying monthly on a car that is 11 years old?

I think thats just the average maintenance cost monthly on his '95 car.

That's pretty high just for maintenance...

I'm guessing the OP should probably work at getting more customers on his paper route... that would bring it down to 60% of his monthly pay.

Oh, and me: 3 cars + insurance + gas is less than 10% of the combined gross income of me and my wife.

With my new math it's actually ~50% of my net income

 

[Descartes]

It's absolutely too much and anyone telling you otherwise is giving you horrible advice. When you are young you are in a position to strip liabilities as much as possible and save as much as possible, because when you're married with children (assuming you will be) you haven't any ability to simply sell your liabilities.

Anything over 25% in liabilities for a car is insanity. I personally try to stay under 5%. Everyone knows that cars aren't investments, but they do add other value: Enjoyment, respectability (if you're in a sales position you're not likely to impress in a 1982 Accord), reliability, etc.

Save, save, save. The time to do so is when have time.

 

[JeffreyLebowski]

Originally posted by: TheSlamma

Originally posted by: Captante

Originally posted by: Dacalo

Originally posted by: Staples
That is right. That is why I drive a 95 and I probably will never buy a new car.

$150 a month vs $500 a month is a lot of money.

You are paying monthly on a car that is 11 years old?

I think thats just the average maintenance cost monthly on his '95 car.

I think that is what he means exactly. I have a 95 Prizm and I would say between insurance and my gas (I drive 40 minutes 1 way to work) that $150 sounds about right.

The $500 he's talking about for a new car is going to be econobox to boot. I know people with SUV's paying over $400 just for the vehicle, $200 a month in gas, over $100 in insurance and the plates are off the hook. I think my tags were $27 this year?

To these people who buy new cars on payments and think they look hot.. the one I envy is your BANKER. He is off making a killing while you are in a depriciating product. When it all ends he's got free money and you have a vehicle not worth a damn to sell.

Yes, because everyone has $20K saved up to pay cash for a car???
By your logic, I shouldn't have a mortgage on my home, but I should have shelled out cash right!! because you get screwed worse on a home loan than a car loan.

 

[Kesmai]

You should spend no more than 25% of your total income on your car(insurance+car payment), if you are single with little expenses you can probably get away with a little bit more.

 

[Christobevii3]

Mortage on houses make sense because you keep the value and it usually goes up. On a car it is dumb because they depreciate like 15% each year unless you own a ferrari.

 

[EngenZerO]

correct,, you can not afford it.

i am single and get away with 35% of my monthly income on my g35.

 

[preslove]

Originally posted by: BigToque
I actually just realized I screwed up my math. Everythign combined is ~50% of my net income per month.

That's still a lot though.

I'm gonna look into buying a 2004.

It sounds like you should look into a 2001, dude.

 

[mugs]

Originally posted by: JeffreyLebowski

Originally posted by: TheSlamma

Originally posted by: Captante

Originally posted by: Dacalo

Originally posted by: Staples
That is right. That is why I drive a 95 and I probably will never buy a new car.

$150 a month vs $500 a month is a lot of money.

You are paying monthly on a car that is 11 years old?

I think thats just the average maintenance cost monthly on his '95 car.

I think that is what he means exactly. I have a 95 Prizm and I would say between insurance and my gas (I drive 40 minutes 1 way to work) that $150 sounds about right.

The $500 he's talking about for a new car is going to be econobox to boot. I know people with SUV's paying over $400 just for the vehicle, $200 a month in gas, over $100 in insurance and the plates are off the hook. I think my tags were $27 this year?

To these people who buy new cars on payments and think they look hot.. the one I envy is your BANKER. He is off making a killing while you are in a depriciating product. When it all ends he's got free money and you have a vehicle not worth a damn to sell.

Yes, because everyone has $20K saved up to pay cash for a car???
By your logic, I shouldn't have a mortgage on my home, but I should have shelled out cash right!! because you get screwed worse on a home loan than a car loan.

Something tells me TheSlamma didn't spend $20k on his 95 Prizm.

I think he's advocating buying inexpensive used cars.

And it's pretty obvious from his post that his "logic" would not apply to a house.

 

[Kyanzes]

No if your salary has seven numbers in it. In that case though, someone seriously misled you regarding the upkeep costs...

 

[DrPizza]

I think the best advice I've ever seen concerning purchasing a new vehicle: If you have to take out the loan for more than 3 years in order to afford the payments, then you can't afford the vehicle.

(This doesn't mean that >3 year loans are bad... especially people who can get in on 0% financing, etc. What it means is that if you HAVE to take out a 6 year loan to pay off the vehicle, then you should be looking for something much cheaper.)

 

[Staples]

Originally posted by: Captante

Originally posted by: Dacalo

Originally posted by: Staples
That is right. That is why I drive a 95 and I probably will never buy a new car.

$150 a month vs $500 a month is a lot of money.

You are paying monthly on a car that is 11 years old?

I think thats just the average maintenance cost monthly on his '95 car.

You sir are correct. The price I was referring to was gas and liability.

With a new car, you need to pay for gas, car payment and full insurance. That totals out to $500 easily.

 

[NanoStuff]

I ride a bike, teehee. An expensive bike be it, if a tire blows out that's $100 right there, but sure beats gas and insurance

 

[NL5]

Originally posted by: Christobevii3
Mortage on houses make sense because you keep the value and it usually goes up. On a car it is dumb because they depreciate like 15% each year unless you own a ferrari.

 

[CrazyDe1]

I spend 300 bucks a month on gas...or more than 5% of my take home pay.

 

[So]

Originally posted by: nakedfrog
Where IS Captain Obvious when you need him?

Captain Obvious is out commanding the S.S. Blatantly Obvious on an excursion to Apparrent Island.

 

[mugs]

Originally posted by: DrPizza
I think the best advice I've ever seen concerning purchasing a new vehicle: If you have to take out the loan for more than 3 years in order to afford the payments, then you can't afford the vehicle.

(This doesn't mean that >3 year loans are bad... especially people who can get in on 0% financing, etc. What it means is that if you HAVE to take out a 6 year loan to pay off the vehicle, then you should be looking for something much cheaper.)

:thumbsup:

Pretty much. Too many people screw themselves financially by trying to keep up with the Joneses.