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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here. We cars for transportation but we like to drive nice cars not clunkers.
Our current cars are 8 years old and it is time for a replacement.
Our HHI is $300k and we have no debt. 
We are looking to replace both cars. We would pay up to $50k for each.
DH thinks that this is reasonable for people in our income range.
[b]Based on most answers here, that doesn’t sound crazy. That’s only 33% of our annual income[/b].[/quote]

Please point to the answer that told you 33% of your annual income on cars wasn't crazy.  I'll wait.

The correct answer is to stagger your replacements so you don't buy 2 new cars in one year and get cheaper cars -- or at least one fun car/ one reliable unexciting transport car as a compromise.[/quote]

See Dave Ramsey link. He’s pretty clear about the value if your cars bot exceeding 50% of your income.
This is a good default rule of thumb for starters.[/quote]

The same link states the car should be purchased in CASH and should never be brand new until assets exceed $1M. Does that describe you OP? You want to spend $100k IN CASH on these two new cars and have at least $1M in assets? [/quote]
We could pay cash for one car. But we will put $25k down on each.
Cars won’t be brand new. [b]DH likes to buy 1 yo used cars that have already taken the depreciation hit.[/b]
Maybe it will make sense to stagger the purchase as others have suggested.[/quote]

This is a terrible strategy for some brands. Which ones are you looking at? [/quote]
Why is it a bad strategy? Please explain. A 1 year old used car is almost new.
We are looking at a Porsche and Mercedes.[/quote]
NP. We planned on getting a used car but when we looked at models that were 1-3 years old they were only $2-3,000 less and we wouldn’t qualify for the super low interest rate. [/quote]

This is why we bought new too. That, and the fact that all of the used cars within the three-year span we were looking at were higher end models, with features we wouldn't otherwise opt for, so we were literally choosing between two-year-old cars with more features and new cars of the same model without the extra features for the same price. Decided it made sense to get the better financing and the warranty.[/quote]

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