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      11-15-2021, 11:48 AM   #287
Ricochet48
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Quote:
Originally Posted by Tyga11 View Post
This is horrible advice. I have no idea what your background is but you would probably tell Bill Gates he can't afford a Tesla.
Finance is my background.

A quick google search recommends 10-15% of your take-home income spent on transportation. Say you make a 10% deposit on a $40K Bimmer and finance for 5 years at 3%, it'll cost ~$800 a month... add additional maintenance expenses, and of course gas then you're easily at over $1K a month (not including parking, which some people in high rises like me pay $200+ for). NOTE--this is assuming no trade in.

If you make $110K, after taxes and putting some away your 401K, etc. you'll be at about $6K net take-home a month. 15% of this is $900 (under the $1K cost estimate).

I've also seen estimates of 30-35% of your gross income to be spent on the total initial purchase (which would similarly cap our $110K salary at $38,500 at the high end).

New cars have gotten a lot more expensive and used cars are at an all-time high now for many reasons. In general Americans seem to way overspend on their cars as it's part of their identity and an extension of their 'freedom' (allowing them to move freely), I get it. At the same time, the numbers don't lie.

Once again, situations are unique though (debt, children, mortgage, inheritance, etc.)

Last edited by Ricochet48; 11-15-2021 at 11:49 AM.. Reason: gramar
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      11-15-2021, 03:41 PM   #288
vetteflier
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Quote:
Originally Posted by jmase248 View Post
This is all subjective as there are many variables, but I found this interesting article..

https://luxurycarsa2z.com/which-inco...w-vs-mercedes/

Here's a notable pull quote:

"BMW demographics are a little bit more "reasonable," as many BMW models are being bought by enthusiasts that stretch their budgets to be able to afford a BMW. Which in turn lowers the average income class of BMW to about $130k per household."

Anyways, back to reading the rest of the comments.
Interesting. However, M-B does in fact make "cheap" cars. Many available in the mid-30s, same as BMW 2 series.
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      11-15-2021, 03:43 PM   #289
jmase248
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Quote:
Originally Posted by vetteflier View Post
Quote:
Originally Posted by jmase248 View Post
This is all subjective as there are many variables, but I found this interesting article..

https://luxurycarsa2z.com/which-inco...w-vs-mercedes/

Here's a notable pull quote:

"BMW demographics are a little bit more "reasonable," as many BMW models are being bought by enthusiasts that stretch their budgets to be able to afford a BMW. Which in turn lowers the average income class of BMW to about $130k per household."

Anyways, back to reading the rest of the comments.
Interesting. However, M-B does in fact make "cheap" cars. Many available in the mid-30s, same as BMW 2 series.
Yep, I think the writer may have been somewhat biased.
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