Can we afford a $105k Range Rover or LX570?

[Anonymous]

Think about what that money would do if you put it towards your mortgage or retirement.
I have a luxury car so I get it but still...you are young. You don't need a 105k SUV that is just for show.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As a 33 year old with 2 kids and an income of $435 I would say no if you are planning to have a nanny and are going to be shelling out for an expensive preschool. The nanny, the classes, the childbirth costs (just hope your wife doesn't have complications and has generous mat leave), the preschool tuition... Save your $$

Why would you have a nanny AND preschool? Daycare/preschool centers fulfill both roles.

Preschool is not daycare - it’s 4 days a week from 8:30-11:30. I have a 6 month old at home and a 2 year old in preschool. Who is going to take care of my 6 month old while my 2 year old is in preschool? Who is going to pick my 2 year old up at 11:30 and make her lunch and do activities with her and my 6 month old in the afternoon? Who will take care of my 2 year old when she gets sick in the middle of the week and can’t go to preschool? Oh right, the nanny. Not the same. My husband and I work full-time and are schedules are demanding, so having a nanny from 8:30-5:30 helps a lot. It’s a luxury, but it’s a luxury I’d take over a Range Rover. It’s really about priorities. I don’t like being stressed out and it’s important to me that my kids get a lot of attention, especially when young. What’s not important to me is driving a status symbol car. Trying to impress upon OP that you don’t want to tether yourself to an expensive car and shut down options for yourself later.

There are preschool programs within daycare centers that fulfill both roles so you would t need both a nanny and a preschool which would be way more expensive than just paying a center that does both full day care and preschool.

Of course it’s less expensive, but I’m not putting my 6 month in some random daycare center and I want the best for my 2 year old. I also want someone who can take my kid to play dates and farms and museums in the middle of the day. I want my kids to have the attention of a full-time parent when I’m not available. Also, my husband and I are doctors and don’t have the flexibility to take time off if our kids are sick and can’t be in daycare. Not saying what I’m doing is better than what anyone else is doing, just saying that I’d rather prioritize my kids, my stress levels, and my career over a status symbol car. OP isn’t at a place where he needs to do that yet, but you’d be surprised how you might feel about your priorities once you have kids. Waking a 5 month old up at 6:30 to rush them to daycare so you can get to work on time and then rushing from the office to get to a daycare center to pick up your kid and then rushing home to start dinner is exhausting as is using a bunch of vacation time every winter when your kid gets sick.

[Anonymous]

Anonymous wrote:

Anonymous wrote:once you're wealthy (you're on the way there), cars <5% of NW is a decent heuristic. I'd wait a few years on the Range/LX.

You're recommending up to 5% of NW for a depreciating asset that is typically replaced every 5 years or so?

II plan to keep ours longer(more like 10), I’m saying that we are worth about $1.6mm and have $80k of cars (b/w 2, both of which are new and will last 10+ years) and that feels about right. The % will drop as we get wealthier and they depreciate. Any more than that feels like huge opportunity cost. It’s still expensive to own a couple of $40k cars and will cost us money in the form of missed investment returns (we could have bought 2 $20k cars). Our income is $400-$500k and we’re young so we can “afford” more but I like the 5% as a limiter on opportunity cost. Just a dumb personal finance rule.

[Anonymous]

PP, though it obviously gets ludicrous once you get above a certain point.

[Anonymous]

Don't you care about the environment at all? Why would anyone consider a range rover?

[Anonymous]

Anonymous wrote:I'm 29 and DW is 30. I make 290k (possibly and likely more if my employer does well) and she makes 120k so HHI is ~410k. Both of our jobs are very stable. Planning to start trying for kids in the next 2-3 months.

The numbers:

~300k in home equity (850k home value, 500k left on mortgage)
400k in retirement
160k in brokerage/investments
60k saved for college
100k liquid savings as an emergency fund

...

What does everyone think? If no, then when would a "smart" (as smart as an emotional purchase like this can be) time be?

You live in cheap for DMV home and have a 500k mortgage and 260k. 105K vehicle? OP got it right on it's an emotional purchase. I guess you can handle a monthly lease payment. Possible if either one of you is unemployed? One of my adult DC's lives in a cheap for DMV home and there is no garage. Where will the 105k Range Rover live? The on street parking? An assigned spot outside the townhouse?

Do you play bumper cars at Magruders or Bethesda Whole Foods?

[Anonymous]

2010 Rav 4. You can guess my opinion.

[Anonymous]

Anonymous wrote:Do it now for practice. If you have two kids and send them to private school in this area, you will be spending that every year on tuition.

I came here to ask about private school and childcare before private. Also will your spouse keep working. I had two kids am the breadwinner our HHI is more than yours. No family money. We have two used cars because private school, camps, after care, extracurriculars are expensive.

We have piano, soccer, competitive gymnastics, ballet, competitive dance, swimming — year round plus summer camps.

[Anonymous]

NP. You are saving for your future kids’ college, what about their planet? Also the LX is ugly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:once you're wealthy (you're on the way there), cars <5% of NW is a decent heuristic. I'd wait a few years on the Range/LX.

You're recommending up to 5% of NW for a depreciating asset that is typically replaced every 5 years or so?

II plan to keep ours longer(more like 10), I’m saying that we are worth about $1.6mm and have $80k of cars (b/w 2, both of which are new and will last 10+ years) and that feels about right. The % will drop as we get wealthier and they depreciate. Any more than that feels like huge opportunity cost. It’s still expensive to own a couple of $40k cars and will cost us money in the form of missed investment returns (we could have bought 2 $20k cars). Our income is $400-$500k and we’re young so we can “afford” more but I like the 5% as a limiter on opportunity cost. Just a dumb personal finance rule.

Got it. I think I'm fortunate to be a reformed "car guy". I now take the perspective of appreciating cars, but not feeling a need to personally own them. So I'm perfectly content with my newish VW and old minivan. I might get something nice when the kids are grown, but for I'm good for now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Do it now for practice. If you have two kids and send them to private school in this area, you will be spending that every year on tuition.

I came here to ask about private school and childcare before private. Also will your spouse keep working. I had two kids am the breadwinner our HHI is more than yours. No family money. We have two used cars because private school, camps, after care, extracurriculars are expensive.

We have piano, soccer, competitive gymnastics, ballet, competitive dance, swimming — year round plus summer camps.

God this is my nightmare life. I'd rather drive a porsche than do all this garbage

[Anonymous]

OP, Of course you can afford it. You make enough money. You are asking this question on the wrong forum.
People here don't care about cars at all. They don't even know what a Range Rover is.
This is fine because people have different tastes and priorities. You are a car guy. Buy you RR and enjoy it. Life is short. Have fun.

[Anonymous]

Anonymous wrote:I'm 29 and DW is 30. I make 290k (possibly and likely more if my employer does well) and she makes 120k so HHI is ~410k. Both of our jobs are very stable. Planning to start trying for kids in the next 2-3 months.

The numbers:

...

MFJ - assume 410 is AGI.
1 kid under 6 and the 105k Range Rover driver gets a child tax credit for 2021 totaling $1500.

Our taxes are like 1 Range Rover lease payments in their pockets.

[Anonymous]

Anonymous wrote:OP, Of course you can afford it. You make enough money. You are asking this question on the wrong forum.
People here don't care about cars at all. They don't even know what a Range Rover is.
This is fine because people have different tastes and priorities. You are a car guy. Buy you RR and enjoy it. Life is short. Have fun.

I have a range rover. I also make almost 1M a year and DH makes much much more.
I could never have imagined a car like that when I had so little money.

Sorry its the truth. You should not be driving that car.

[Anonymous]

Huge waste of money. Just burn it in a trash can 🤣