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

[Anonymous]

Our HHI is probably in the $400Ks, but until I catch up on college savings, put a bit more away in other savings and as long as my old cars still run, just cannot see it. It would save me a good deal in gas if I bought a car with 30+mpg though ...

[Anonymous]

I keep my cars 12 years, so my next car will be a +/- 40K car because I'll want features that are up-to-date, higher quality, and made to last longer. (And I'll want something that makes me happy to drive, since I'll keep it for so long). Over 12 years, spending 15K more on a nicer car than a less expensive one comes out to around $1200 more per year or $100/month, which is well within my budget (which is 1/2 your income).

[Anonymous]

Anonymous wrote:Over 12 years, spending 15K more on a nicer car than a less expensive one comes out to around $1200 more per year or $100/month, which is well within my budget (which is 1/2 your income).

I'm always initially attracted to this logic until I see what the 15K buys. E.g. adding a navigation package that costs $1200 doesn't make sense no matter how long you own the car, because a standalone navigation system (or an iPhone) is a much better deal. I'd pay more for a better engine or better safety features, but most luxury car brands are owned by a non-luxury brand that sells the same engine/safety combo somewhere under the non-luxury line (e.g. volkswagen/audi, toyota/lexus, etc.).

[Anonymous]

(That being said, I don't think there's anything unreasonable about owning a $40,000 car on a $400,000 HHI. DC is a bit weird in that you regularly see $800,000 homes with civics out front. In cities with cheaper real estate and better weather, everyone with a $150,000 condo has a $30,000 car).

[Anonymous]

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

[Anonymous]

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

I wouldn't either but then I only want to impress myself. My last vehicle I bought for cash. Paid off beats any brand or status.

[Anonymous]

40k. We make less than half of what you make (170k), but we only buy our cars with cash and we drive them for years.

[Anonymous]

Anonymous wrote:

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

I wouldn't either but then I only want to impress myself. My last vehicle I bought for cash. Paid off beats any brand or status.

+1!

[Anonymous]

Anonymous wrote:Our HHI is probably in the $400Ks, but until I catch up on college savings, put a bit more away in other savings and as long as my old cars still run, just cannot see it. It would save me a good deal in gas if I bought a car with 30+mpg though ...

$40k in cash to pay for it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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

I wouldn't either but then I only want to impress myself. My last vehicle I bought for cash. Paid off beats any brand or status.

+1!

+1. People should ONLY buy cars in cash. If you can't afford it, you can't afford a new car.

[Anonymous]

As long as I was on track for savings, etc and had $40k to spend, I would buy it.

[Anonymous]

Anonymous wrote:

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

I wouldn't either but then I only want to impress myself. My last vehicle I bought for cash. Paid off beats any brand or status.

We have a $40K car and a $70K car, both paid with cash. So sometimes, you can have both.

[Anonymous]

I would consider buying a 40K Tesla Model E when it comes out:

http://jalopnik.com/the-40-000-ish-tesla-model-e-will-debut-in-2015-1484079617

, because Teslas are fantastically made cars, and I believe that the savings that I would get from never having to pay for gas again would make up the difference in the long run.

Other than that, it's a used car for way less.

[Anonymous]

whoops, meant to make that a link: http://jalopnik.com/the-40-000-ish-tesla-model-e-will-debut-in-2015-1484079617

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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

I wouldn't either but then I only want to impress myself. My last vehicle I bought for cash. Paid off beats any brand or status.

+1!

I wouldn't either but I think its obnoxious to assume that the sole reason to buy an expensive car is to impress others. They are also on average more fun to drive, have more amenities, and are safer.