Buying a vehicle based on you're income!

[jcl]

Obviously, it's up to the buyer how much they're willing to spend on a new/used vehicle, but in "you're" opinion, realistically how much should one spend on a vehicle based on say, an annual income?

Opinions please, thanks...

[Earthworm]

That's an impossible question. Mostly, you need to consider how much extra money you have lying around. You could be making $200k but spend most of it paying for your $1M house.

[jcl]

That's an impossible question. Mostly, you need to consider how much extra money you have lying around. You could be making $200k but spend most of it paying for your $1M house.

Yeah, I know there are a lot of variables, but generally speaking....(living in you're means so to speak)

[7jaii]

I'm paying around $300 a month for my Accord. That's what I can afford on my salary. It was about the same for my old Civic but that was because I was paying for a lot of years. Buy the best for your money man or if your old lady is really hot then get heated leather seats

[jcl]

I'm paying around $300 a month for my Accord. That's what I can afford on my salary. It was about the same for my old Civic but that was because I was paying for a lot of years. Buy the best for your money man or if your old lady is really hot then get heated leather seats

lol, well I currently drive a 97 Acura 2.2 cl, which is a nice car, but it's getting old, I figured to sell it, and get something newer, and more spacious, like a 4 door. Plus it'll be cheaper on insurance, im currently paying $310 full coverage on the 2 door.

[Xiggy]

living in you're means so to speak

OK, you've made the same mistake twice in this thread... so obviously, it's not a typo.

you're = "you are"

[jcl]

OK, you've made the same mistake twice in this thread... so obviously, it's not a typo.

you're = "you are"

errr "your" thanks for the correction.

Haha redflagdeal spellcheck police on duty!

[blue_xii]

General rule of thumb for me is that the total purchase price of the vehicles you own should not exceed 1/3 of your gross income.

[mau108]

financed my lude at prime +1, payed 8000 of the 14000 in less then a year, past few months havent paid anything due needing money for the RRSP.

I'm a 20 year old student with only 1 part time job.

[nx2k]

their annual salary should be the worth of their car, if u make $25k, and nto a whole lot of other expenses, u should drive a $25k car after a few years of savings of course, if umake $80k, then u should drive an $80k car

i dont' follow this rule cuz im super cheap, i don't make that much but i drive a second hand $6k car, atleast the original value when new was close to what i make annualy now

[boonjaca]

their annual salary should be the worth of their car, if u make $25k, and nto a whole lot of other expenses, u should drive a $25k car after a few years of savings of course, if umake $80k, then u should drive an $80k car

i dont' follow this rule cuz im super cheap, i don't make that much but i drive a second hand $6k car, atleast the original value when new was close to what i make annualy now

Shoot, I don't think your annual salary should be the cost of your car, that's kind of excessive. Somone making 25K/yr probably won't be able to afford a car that's 25k, even with not very many expenses. I think it should be 1/2 to 2/3rd of your annual salary at most.

[chicadam]

General rule of thumb for me is that the total purchase price of the vehicles you own should not exceed 1/3 of your gross income.

I think thats a little conservative...

I mean you are probably right because a car is totally a liability but I enjoy a nice car. You are only live once and I think happiness is the key to life. I'm not saying to go crazy but you'll have to make $150K/yr to drive a BMW 325i? To get that salary you'll have to be at least around mid fourties and holding down a good job.

For me its about 1/2 annual income.

[nsr250]

lol, well I currently drive a 97 Acura 2.2 cl, which is a nice car, but it's getting old, I figured to sell it, and get something newer, and more spacious, like a 4 door. Plus it'll be cheaper on insurance, im currently paying $310 full coverage on the 2 door.

97 acura getting old? Damn then my 1990 integra must be ancient!!!
Actually I'm getting a car soon , my anually salary is about 30k and I'm planning on financing a car around 20k range. With the monthly payments and insurance plus gases , expenses , rent and bills I'll still have around couple hundred bucks a month to put away in savings.
Just budget yourself that you'd have couple hundred dollars that you can put away per month so in case anything happens you still have a lil nest egg.

[kfc]

according to the wealthy barber:

1. the value of your car should not exceed 10% of the value of the home you own. For example if you own a 400K home, you should not dive a car worth more than 40K

2. cars depreciate and are a horrible investment so as little as you can in them the better.

[blue_xii]

I think thats a little conservative...

I mean you are probably right because a car is totally a liability but I enjoy a nice car. You are only live once and I think happiness is the key to life. I'm not saying to go crazy but you'll have to make $150K/yr to drive a BMW 325i? To get that salary you'll have to be at least around mid fourties and holding down a good job.

For me its about 1/2 annual income.

That's only if you're talking about buying a new car. But yeah if you like nice cars it's hard to follow that rule. I'm trying to follow it myself but I'll see what happens when I have to buy a second car.

On the other hand it feels awesome to have as few monthly expenses as possible. The more of my paycheque I keep the happpier I feel every other Friday.