[Ricochet48]

Oh a spicy thread!

As others noted, there's lots of background information that needs to be highlighted before making any sound assessment. My FP&A background forces me to focus on each individual's current balance sheet and P&L as well as future forecast.

Specifically, on the BS side, does the buyer have any outstanding debts (student loans, medical bills, CC, etc.) and how robust are their investments (6mo. emergency fund, maxing out 401K, ROTH IRA, etc.)?

Then in terms of their P&L, I would obviously look at their current salary but also analyze its 5-year projection. Moreover, current expenses are key, but major future purchases must also be planned out (house purchase, wedding, children, etc.). Finally inheritance is a wildcard too (but its projection is likely less clear).

If you're single making $110K (but expect to make $150K+ in 5-years based on your background), with no debt aside from a condo mortgage, a $40K CPO BMW might be okay.

If you're engaged making $150K, still have $20K in debt, and need to save for a wedding and down payment on a home in the suburbs, $40K is likely much more of a stretch.

If you're married with 2 kids and make $175K, $40K may or may not be doable depending on how much you're spending on your children & investing in their future education, etc.