how much income or how much savings would you need before buying a $40K car?

[Anonymous]

Anonymous wrote:

Anonymous wrote:http://www.motortrend.com/new_cars/99/40_50/pricing/

These cars seem pretty middle class to me. I feel sorry for all of you in your old beaters.

You have a $40,000 car? How much money do you have invested?

$5M. No do not have a $40K car. We have 5 altogether.

[Anonymous]

So, back to the original question - husb and I make about $150k between us, no kids, about $70k still in student debt. I think we'd have to make about $50k more and be done with the student debt before I'd be comfortable with a $40k car. Husband was ready to spend that much on the last car we bought (we ended up getting a Kia Soul, which has suited us incredible well and cost about $20k altogether).

Re: only buying a car if you have the cash for it - aside from that not being really smart financial advice, it's just not possible for some of us. We could probably live without a car, but our quality of life would go way way down. Life is full of tradeoffs, in other words.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would need the kids through college and $5 million net worth.

Thats crazy, you sound like a miser.

I spend $3,000 a year on wine. Is that miserly?

it's indicative of a problem.

What kind of problem? are you assuming that's a lot of bottle and that I'm drinking all that wine?

I assume you are drunk due to your grammar.

[Anonymous]

Anonymous wrote:
Re: only buying a car if you have the cash for it - aside from that not being really smart financial advice, it's just not possible for some of us. We could probably live without a car, but our quality of life would go way way down. Life is full of tradeoffs, in other words.

I would narrow this guidance to "only buy an expensive new car if you can pay cash for it." People do need cars to move around, and must sometimes borrow to buy it, but no one needs a new expensive vehicle to get around. Nothing is more pathetic, in my opinion, than taking a loan to buy or, worse yet, leasing a luxury car. That just screams inferiority complex.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would need the kids through college and $5 million net worth.

Thats crazy, you sound like a miser.

I spend $3,000 a year on wine. Is that miserly?

it's indicative of a problem.

What kind of problem? are you assuming that's a lot of bottle and that I'm drinking all that wine?

I assume you are drunk due to your grammar.

LOL you couldn't be more wrong (or more jealous )

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Re: only buying a car if you have the cash for it - aside from that not being really smart financial advice, it's just not possible for some of us. We could probably live without a car, but our quality of life would go way way down. Life is full of tradeoffs, in other words.

I would narrow this guidance to "only buy an expensive new car if you can pay cash for it." People do need cars to move around, and must sometimes borrow to buy it, but no one needs a new expensive vehicle to get around. Nothing is more pathetic, in my opinion, than taking a loan to buy or, worse yet, leasing a luxury car. That just screams inferiority complex.

ITA

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Re: only buying a car if you have the cash for it - aside from that not being really smart financial advice, it's just not possible for some of us. We could probably live without a car, but our quality of life would go way way down. Life is full of tradeoffs, in other words.

I would narrow this guidance to "only buy an expensive new car if you can pay cash for it." People do need cars to move around, and must sometimes borrow to buy it, but no one needs a new expensive vehicle to get around. Nothing is more pathetic, in my opinion, than taking a loan to buy or, worse yet, leasing a luxury car. That just screams inferiority complex.

ITA

ah, if interest rates are 2% or less, not that big of a deal. I'd rather keep my cash invested and borrow at 2%.

[Anonymous]

HHI is about $270k. Have about $700k in retirement accounts, and about $75 liquid assets. No debt other than the mortgage. Bought my first $40k vehicle last year after driving my old vehicle for almost 15 years. I love it and for me it was totally worth it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Re: only buying a car if you have the cash for it - aside from that not being really smart financial advice, it's just not possible for some of us. We could probably live without a car, but our quality of life would go way way down. Life is full of tradeoffs, in other words.

I would narrow this guidance to "only buy an expensive new car if you can pay cash for it." People do need cars to move around, and must sometimes borrow to buy it, but no one needs a new expensive vehicle to get around. Nothing is more pathetic, in my opinion, than taking a loan to buy or, worse yet, leasing a luxury car. That just screams inferiority complex.

ITA

ah, if interest rates are 2% or less, not that big of a deal. I'd rather keep my cash invested and borrow at 2%.

Right, Buying a car in cash frequently makes little financial sense, if the loan terms are favorable.

I also know several people who lease nice cars because they enjoy owning nice cars. If you can't imagine someone leasing a nice car who doesn't have an inferiority complex, then I think it speaks more to your disinterest in cars or inability to engage in empathy/cognitive flexibility than it does to the car owner's personality.

Also, leasing gets a bit too bad of a rap on this forum in general. Leasing is a much worse deal than buying a car and driving it into the ground. But its almost exactly as sensible as buying a new car, driving it for several years (but not until it breaks), and then trading it in, which people do all the time.

[Anonymous]

Anonymous wrote:
I also know several people who lease nice cars because they enjoy owning nice cars. If you can't imagine someone leasing a nice car who doesn't have an inferiority complex, then I think it speaks more to your disinterest in cars or inability to engage in empathy/cognitive flexibility than it does to the car owner's personality.

You are correct. I do not empathize with luxury car drivers. I try to save my empathy for other, more deserving, categories of people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
I also know several people who lease nice cars because they enjoy owning nice cars. If you can't imagine someone leasing a nice car who doesn't have an inferiority complex, then I think it speaks more to your disinterest in cars or inability to engage in empathy/cognitive flexibility than it does to the car owner's personality.

You are correct. I do not empathize with luxury car drivers. I try to save my empathy for other, more deserving, categories of people.

Ha, point taken!

I just hope people "get" that folks can buy nice cars for reasons other than rubbing their neighbors' noses in them. For example, they are fun to drive and comfortable, which are important considerations if you're a commuter who spends a large percentage of your life in one.

[Anonymous]

I have a new car, and I enjoying driving it every time I drive it (Mercedes). I don't give a flip what the neighbors think. But most everyone in our hood drives a new luxury car. So. I guess they all feel the same way. Certainly do look happy about it.

[Anonymous]

by the way, buying a car for $33K that is used does not equal buying a $40K car for the purposes of this discussion. i.e., you can buy a 2011 BMW 528 for $35K that has 30K miles on it. That car will last 150K miles easily, but probably start needing maintenance off warranty in a year of owning it.

[Anonymous]

Anonymous wrote:I would never buy a $40K car. You can get a great car for half that.

Some people like nice cars as you may like having a pool in your yard. To each his own.

[Anonymous]

Anonymous wrote:I have a new car, and I enjoying driving it every time I drive it (Mercedes). I don't give a flip what the neighbors think. But most everyone in our hood drives a new luxury car. So. I guess they all feel the same way. Certainly do look happy about it.

+1