Automotive

At what salary til you should invest into a new car?

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  • Jun 13th, 2015 10:32 pm
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Oct 9, 2011
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blitzforce wrote:
Mar 6th, 2015 1:56 pm
Uni. I want to invest into a house but it costs way more than just a car. Another thing is the amount of time where I drive to work/school and I see other young adults around my age drove a BMW, and I get the "I also want to drive one" feeling.
not trying to be harsh but that mindset is a little childish. Even if you buy a brand new 30k car, you won't be able to keep up with those rich kids, they are probably going to get another new car 3-4 years later. By then your new car won't be new anymore and you need to pay off your long term monthly payment.

I know some people back in school with rich parent that buy them BMW, Lexus, they are just luckier than others (they are actually nice people with great personalities that always offer to give others a ride :p). If you have rich parents willing to buy you new car you wouldn't be here posting this. From your first post, it sounds like you don't plan to put down any downpayment..... I am assuming you don't have much saving.... that case 30k should means a lot to you?

and I thought dealership won't let you finance a car if monthly payment exceed 30% or 40% of your monthly income?

maybe try to get a job at BMW, that way you get to drive all kind of fancy cars :p
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Quentin5 wrote:
Mar 6th, 2015 4:44 pm
thats the traditional advice, and the fact people laugh at it is the testament to the spendthrift ways of our culture
i think this only applies to if you dont have money saved up.

i think if you try to say, save 10K a year over 3 years, its totally doable even if you dont have a 6-figure salary. its really about how much you are able to save up for a car fund
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chroma_cg wrote:
Mar 6th, 2015 4:54 pm
i think this only applies to if you dont have money saved up.

i think if you try to say, save 10K a year over 3 years, its totally doable even if you dont have a 6-figure salary. its really about how much you are able to save up for a car fund
How many people have this kind of saving ethic, i know some that do but a much higher percentage don't
I didn't invent the advice, but i can't disagree with it, i may pick a slightly different percentage but it makes a lot of sense.
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Sep 18, 2004
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blitzforce wrote:
Mar 6th, 2015 1:56 pm
Uni. I want to invest into a house but it costs way more than just a car. Another thing is the amount of time where I drive to work/school and I see other young adults around my age drove a BMW, and I get the "I also want to drive one" feeling.
My favourite question in a situation like this is: If someone offered you a $30K car, or a bag of money with $30K in it, which would you choose?
chroma_cg wrote:
Mar 6th, 2015 4:54 pm
i think this only applies to if you dont have money saved up.

i think if you try to say, save 10K a year over 3 years, its totally doable even if you dont have a 6-figure salary. its really about how much you are able to save up for a car fund
On a $50K salary in Ontario (which is one of the lowest income tax provinces), you would be taking home $41,306. Assuming that your $30K car is $30K all in (and not plus fees, freight, taxes), you would have to save 24% of your income every month for 3 years for the car alone. This is leaves 75% of your income for lodging, food, clothing, retirement, vacations, recreation, long term savings, incidentals, etc. Not sure I would call that "affordable".
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molo wrote:
Mar 6th, 2015 5:05 pm
My favourite question in a situation like this is: If someone offered you a $30K car, or a bag of money with $30K in it, which would you choose?
That's an interesting way to put it!
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molo wrote:
Mar 6th, 2015 5:05 pm
My favourite question in a situation like this is: If someone offered you a $30K car, or a bag of money with $30K in it, which would you choose?


On a $50K salary in Ontario (which is one of the lowest income tax provinces), you would be taking home $41,306. Assuming that your $30K car is $30K all in (and not plus fees, freight, taxes), you would have to save 24% of your income every month for 3 years for the car alone. This is leaves 75% of your income for lodging, food, clothing, retirement, vacations, recreation, long term savings, incidentals, etc. Not sure I would call that "affordable".
just saying, man

its just an example, is totally flexible and varies for the individual. the idea is to just save up really, and my example of 10K a year over 3 years is just that, an example. how much you can save up depends on your general lifestyle too. it may be harsh but it's definitely not impossible. i personally dont buy the 30% rule for buying a car. for mortgage, yes i agree and believe that works. for a car, not so much (simply because cars and properties work different ways in terms of value and appreciation/depreciation)
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molo wrote:
Mar 6th, 2015 5:05 pm
My favourite question in a situation like this is: If someone offered you a $30K car, or a bag of money with $30K in it, which would you choose?


On a $50K salary in Ontario (which is one of the lowest income tax provinces), you would be taking home $41,306. Assuming that your $30K car is $30K all in (and not plus fees, freight, taxes), you would have to save 24% of your income every month for 3 years for the car alone. This is leaves 75% of your income for lodging, food, clothing, retirement, vacations, recreation, long term savings, incidentals, etc. Not sure I would call that "affordable".
That's why you save up for a down payment first. My down payment was 50% of the total cost of the car. I financed the rest... my payments are $96 bi-weekly. Are you telling me someone with a $50k salary can't afford that?
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Jenuine wrote:
Mar 6th, 2015 5:48 pm
That's why you save up for a down payment first. My down payment was 50% of the total cost of the car. I financed the rest... my payments are $96 bi-weekly. Are you telling me someone with a $50k salary can't afford that?
50% of what? And $96 bi-weekly for how long?

Kind of hard to determine if one can afford something without knowing the actual cost.
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Oh dear...yeah if you're in uni I'd skip thinking about new cars. If you want a BMW, get a used one...preferably a much older one, that way its going to be more simple and if something truly goes wrong it won't flush all your money away because its not worth much. I drive a lot of different cars due to my job, and yet...even though I can afford them(after saving for years and years), I refused to buy the BMW, Audis and Mercs. I realized they're not as amazing as the folklore led me to believe, don't get me wrong they're not rubbish(apart from the B-class that's dreadful!) but for the amount they ask...too expensive and awful value. I'd also note that buying new, it'd better be something you really really want, something that you could tolerate beyond what most people tolerate a car. I bought my FRS new almost a full year ago(2 more weeks and yes), and I only bought it because I liked it that much, buying used is pointless since I bought a 2nd model year barely any used are worth it and most importantly its a car I could truly drive 20 years after owning it and still be very happy.

If you're the sort to buy a car because its the new thing in town...you need a lot of money to support such a thing. If BMW comes out with a new version of the 3 series that's better than the F30, can you resist the temptation to buy whatever the next one is? If the answer is no, you'll need fat wallets to back that up otherwise don't bother. In my case if Toyota/Subaru release the mythical thing known as the FRS/BRZ turbo, I wouldn't be bothered. I'd be happy for those who wanted such a car, but I got the car I wanted and I'm in it for the long haul. I did keep my 1st car for 8 years, and I actually was disappointed I couldn't keep it longer.
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molo wrote:
Mar 6th, 2015 5:05 pm
My favourite question in a situation like this is: If someone offered you a $30K car, or a bag of money with $30K in it, which would you choose?
Whats a Karr? :cheesygri
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But this method doesn't work with a tomato...
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Asheron wrote:
Mar 6th, 2015 2:39 pm
I have the ~$10k/yr in daycare costs earmarked for a new car when they're done. Might still buy a 10-year old Lexus or Avalon. A nice new car just seems like a big waste when you consider it to be equal to about 2 yrs of retirement expenses, maybe more with compounding.
Driving around in a rusty 10-year old Lexus is not balling.
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molo wrote:
Mar 6th, 2015 5:05 pm
My favourite question in a situation like this is: If someone offered you a $30K car, or a bag of money with $30K in it, which would you choose?
I'd choose the car with 30k in the trunk.
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Aug 15, 2014
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agree with most, after i graduated in 2012 my first purchase was a 08 lexus is 250, you just need to budget accordingly like most have stated, for myself my rent was $500/m, decided to move back home where I would be in a position to finance the vehicle I wanted...happy to say if I could go back I would not change one thing as I now enjoy a much closer commute in a much nicer vehicle than a 1992 camry.... My last car payment will be MARCH 2016!

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