How much does one have to make to afford a $40k car?
I want one of these so fucking bad. If I get one, I plan to drive it for at least 10 years.
>>13884480
Well that depends on your outgoings. If you make $200k a year and spend $199k a year on other shit it will take you 40 years to afford a $40k car. You weren't planning on retard finance were you?
>>13884480
The heard the rule of thumb is that you should never buy a car that ends up costing you more than a years salary after tax. But there are so many other variables namely credit score, other expenses in your life, and the general cost of running the car like insurance, guzzoline, and maintenance.
But first you have to get approved for a car loan by a bank. Never go finance through a dealer. Buy a used shitheap outright instead if you have to.
That said, take a good hard look at your finances before you ever make a big investment.
>dat ATS-V
Seeing that Caddy couldn't GIVE these fuckers away I'd imagine you'd get a better deal on one of those than an SS by this time next year.
>>13884480
At least 80k. Monthly payments are going to be anywhere from $650 to $900 with good credit. I don't think I would want payments that big on an income less than 80k
>>13884480
$400k a year after taxes.
10% of your yearly income whenever you buy a car will leave you both with a heightened car-shopping skill and an unassuming, modest lifestyle while still banking for the future.
>>13885261
So every person driving around in new cars are 1%ers?
>>13885270
No, but they more likely than not also have lackluster money-management skills.
>>13885288
Mr. Money Mustache is not always right you know. What's the point of living if you don't spend your money on things you enjoy.
I am seriously considering leasing one of these for $200 a month for 24 months... PLEASE talk me out of it. I know this is a horrible decision in the long run, but my desire for this car is indescribable.
>>13885270
No, most of them are just idiots that don't understand that they're going to get themselves into debt by financing something they can't afford. Then the Repo man comes, https://www.youtube.com/user/RepoNut/videos
It's the same with people that are brainwashed by society into attending college despite the obscure cost.
>>13885307
>lease
its a terrible idea because for $100 more a month you can buy a 2011-14 5.0 instead
>>13885261
This is NOT true. If your making 400k a year you have a down payment and interest rates around 2.9%. Your also not looking at a 40k car, but that is irrelevant for the purpose of this thread.
>>13885318
I don't want an '11-14 5.0. I know they're slightly faster, but I want an S550 5.0.
>>13885261
retarded
>>13885323
I guess then. The older S197s are still pretty good cars. I actually like them personally more than the S550s because its a timeless design with defined muscular lines, the last of the LRA Mustangs. It LOOKS aggressive standing still. Its also 200lbs lighter.
How much debt do you have, @ what %
How many assets do you own, @ what rate of return
Total amount of liabilities you own (things that cost money)
Are you married, children?
Do you have any skills that can make you money in a recession?
How old are you?
Do you know accounting?
And finally what's your income now and in 5 years.
Remember if your car loan is over 36mo you fucked up
>>13885306
I'm not saying you can't enjoy things; a issue with society in general is thinking you have to spend your money as soon as you get it on things to enjoy something. If people do want to spend their money however they like, that's their prerogative, though!
I'm just saying that there's this unnecessary stigma on owning an older car when most are perfectly fine, can be gotten for cheap, and allow you to allocate your money on either building wealth for later or having a higher general quality of life.
Say you make $80k a year and spend $40k on a car paid over 4 years at 3% interest. You'll spend 42.5 grand total out of 320 grand over those four years.
Now buying an 8k car upfront leaves you with 34.5 grand over those four years, or $8,625 per year.
That's more than enough to cover any expenses if you shopped smart within the first year, so even assuming that year is gone, $8,000 extra bucks a year can go into many other facets of your life. If you enjoy sports, for example, you could attend 20 home games for my area NBA team per year and sit courtside and also have something nice to eat or buy some merchandise while you're there.
>>13885322
Why not? That whole desires upscaling with your income increase is why we have so many people that would get fucked over at even the slightest turbulence.
>>13885326
k
>>13884480
oh noes OP why did you ask this
>poorfag retards incoming
>>13885261
>>13885377
Give me a reason why it's an objectively bad way to go about purchasing a car.
>>13885435
It isn't, but you'd have to be actually retarded to think that's the best/only way to do it. All you need is a decent credit score and a low APR, and a monthly payment you can afford.
>>13885442
Ah, see, my parents stole my identity and fucked over my credit score, and it hasn't been 7 years.
>>13885307
never ever lease dude
>>13885254
No. I bought a car that was $38k after taxes and fees (MSRP was $40k) when I was making $55k a year and paid it off within a year in and a half, all while still making my 401k contributions and going out almost every weekend. Payments were $500 (obviously I put way more into it to pay off early). You certainly don't need $80k/year for a $40k car....
>>13885456
Why?
>>13885356
I don't see the problem in buying a car on a long lease at less than 2% apr, then paying it off quickly
>>13885457
True. My mom bought a 30k car before taxes and fees. And she only made about 30k at the time while supporting me and my three brothers.
>>13885363
You also have to keep in mind that most used cars in that price range also need serious maintenance and repairs in the near future if you plan on owning it for an extended period of time. If you're only going to drive it until the wheels fall off then yeah, ok, you can probably get away with spending $10k total on an $8k car in 4-5 years but then you're also dealing with the unknown risk of it breaking down randomly. It's a total crapshoot no matter what - shit happens and you could end up with a magical vehicle that doesn't need anything for years, or a pump/coolant system somewhere can take a shit in a year or less.
Over the course of owning a typical used car (long term), one should plan on an averaged out cost of about $150/month cost of ownership. You might have no issues at all for 2 years, but then have thousands of dollars worth of repairs and maintenance items the third year (tires, brakes, etc. etc.). This drops a little if you care to do your own work, but then there's a time and tool investment.
Decent used cars ARE a good value, I'm not saying that they're not, but there is a reason that they're cheaper than new and it is not purely a psychological one of "wanting something shiny".
>>13885518
Most used cars still got warranty though. And about spending thousands on maintaining a car, really? If I'm only spending less then 500 a year on a 06 honda civic hybrid how do cars like the ones OP wants cost more to maintain? Are they poorly made.
>>13884480
The really bad stuff is the aditional costs. Here in CT cars have property tax, and insurance is really bad. Plus you never want to be without a small warranty-proof backup fund.
>>13885254
You need $6500 a month to keep up with $900 payments?
>>13887260
With an $80k salary your takehome pay is generally under $5k/mo, depending on where you live and what kind of retirement/FSA contributions you make. But even then if you're single $900/mo on something you'll enjoy is easily doable. A $40k car doesn't have $900 payments unless you have super shit credit anyways.
>>13887427
My Hellcat didn't cost me 900$ a month.
>>13885377
>that pic
>>13884680
If you want reliable transport, drop 2-3k on a 2000ish buick with fewer than 100k miles. If you take care of it, you'll get at least another 100k and you're basically driving a car for about $0.15 a mile including fuel and maintenance.
>>13885261
Ok listen retard, 10% of your ANNUAL salary should equal the ANNUAL car cost. At the end of a year, that 40k car will be worth 36k. So you need a 40k take home to l afford it on your metrics.
>>13884480
I bought a $45k car and make $60k a year. Having a large downpayment was key.
Not like the car is making me broke. Still have money to save, go on vacations, etc.
>>13885323
2015 is the first gen of the new design. Never buy first gen. Many kinks to work out and bad quality control this time around.
https://www.youtube.com/watch?v=7BuwssXuJhM
For example
>>13887731
Brag more. I'm making about 105k and driving a 15 year old buick.
>>13885308
>It's the same with people that are brainwashed by society into attending college despite the obscure cost.
>despite the obscure cost
Sounds like you could have used some extra english lessons.
>>13884480
>>13885261
>make 14/hr
>can barely afford 3000k shitbox
I knew this, I knew it. cars is a beorgoise hobby, I'm stuck with fantasies and youtube videos.
>>13887746
well if he's a retard maybe he really did mean obscure, but it's more likely he doesn't know what obscure means.
ob·scure
əbˈskyo͝or/
adjective
1.
not discovered or known about; uncertain.
"his origins and parentage are obscure"
synonyms: unclear, uncertain, unknown, in doubt, doubtful, dubious, mysterious, hazy, vague, indeterminate, concealed, hidden
"the truth is that many aspects of a war's outcome remain obscure for years"
verb
1.
keep from being seen; conceal.
"gray clouds obscure the sun"
synonyms: hide, conceal, cover, veil, shroud, screen, mask, cloak, cast a shadow over, shadow, block (out), obliterate, eclipse, darken; More
>>13887755
If you have other finances (like living) 14 per hour is not going to go very far man. Do you at least get 80 hours every two weeks?
>>13885308
>despite the obscure cost.
>obscure cost.
>obscure
Didn't even need my degree to know that the word you were looking for there was "obscene".
Very conservatively, your take-home should be at least 66k a year - which means you're probably somewhere in the $80-85k range.
Rule 1: A car payment shouldn't be more than 20% of your monthly take-home.
Rule 2: If you can't afford it in 3 years, you can't afford it.
> $40k car / 36 payments = $1111/payment
> $1111 payment /.2 (20%) = $5555 required take-home
> $5555 monthly take home * 12 (months in a year) = $66,666.66 annual take-home.
> $66,666.66 take home / .8 (ie - you'll probably pay about 20% in income tax) = $83,333
>>13887740
Everyone has priorities. You driving a 15 yo grandma car tells me that you value your virginity. Congrats. :^)
>>13887703
I wouldn't expect it too, unless you didn't have a down payment and shit tier credit
The worst part about having a nice car is insuring it.
>>13885307
You're fucking dumb if you think you can lease this for $200/mo without a $8k downpayment
>>13885318
also dumb. 5.0s go for no less than 20ish, and that's the ugly 2011s
>>13884480
"I plan to drive it for 10 years!!"
no you don't. I said the same thing with my car. 6 months later i'm itching for other cars.
Put it this way, I make $67k and I bought a $15k car. That gives you an idea of what it would take for me to buy a $40k car
I make 50k and drive a $3500 midsize suv. I cant imagine buying new. Stay poor plebs.
>>13884480
That depends completely on you. How much are you willing to spend on a down payment? How big of a monthly payment are you comfortable with? How long do you want to have to make payments? Is your credit good enough to secure a low finance rate? What other financial obligations do you have? Obviously, the answers to these questions vary from person to person, but here are a few things to keep in mind.
1) The excitement of buying a car, whether it's new or lightly used, wears off quickly. You might think paying a hefty monthly payment is worth it for the performance, warranty, new styling, etc for the first year, but that enthusiasm decreases exponentially as your car gets normal wear and tear and the manufacturer releases newer models with better performance and newer features. This is especially true for pony cars.
2) For the reasons above, try to pay off your car within three years and calculate your payments based on that schedule. You will also pay less overall interest if you pay your car off sooner. The best way to do this is to get the loan for 5+ years and make double payments (or more). That way, if something does happen that prevents you from making next month's payment, such as losing your job, you won't actually owe a payment for a long time. For example, when I was nearly finished paying off my last loan, I actually didn't owe a payment for 2+ years.
3) Make sure you have a healthy emergency fund. As a general rule of thumb, I like to keep enough money in the bank to be able to live for at least six months should I lose my job. Make sure you take into account your car loan and insurance costs.
4) After considering your monthly car payments and other associated costs, make sure you still have enough money each month to put some away into a retirement fund. Social security is going the way of the dodo, so it's important you have money for the future.
>I want one of these so fucking bad. If I get one, I plan to drive it for at least 10 years.
Lmao, is this how idiots rationalize 7 year car loans?
>>13888816
continued
>>13885456
Whether leasing is a good or bad deal depends on your car purchasing habits. If you're the kind of person who buys used cars and wants to get the most out of their investment, then leasing is throwing money away.
However, if you're the kind of person who ends up selling as soon as you pay off your current loan, only to get another car loan, then leasing is a better option because you'll always have a new or nearly-new car, probably won't have any serious maintenance issues, and any needed service will be completely covered.
Still, there is no way I would lease a pony car, as part of the reason you buy a pony car in the first place is to mod it.
>>13888816
You obviously have no idea how loans work. Making double payments does not mean you get to skip a payment later on because you can't afford it one month. You still owe the monthly payment on its due date no matter how many double payments you've made. The only benefit you get is it's paid off sooner and your principal is smaller so you pay slightly less interest.
>>13884680
uh no. that is not the rule of thumb.
