Reply to People who make under $300k hhi: do you really have over $1000+ per mo in car payments?

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Reply to "People who make under $300k hhi: do you really have over $1000+ per mo in car payments?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]A good rule of thumb is to pay no more than 20% of your gross HHI on a vehicle purchase. That's assuming you keep a car for seven years.[/quote]

Wow, no way.  We pay cash and no more than about 7% of gross income.  Keep cars at least 10 years.  [/quote]

20% of gross means if you make $100K/year you keep your car purchase budget to $20K. I think that’s reasonable. [/quote]

Numbers like that are made up by the really rich who can then call poor people profligate when they are unable to follow them. The average income in Fairfax County is 55k. That means the average resident of Fairfax county should be driving an 11k car. [/quote]

Huh? The median HHI for Fairfax County is $134K.

https://www.census.gov/quickfacts/fact/table/fairfaxcountyvirginia/PST045222

So they are looking at a $26K vehicle. You can get a solid certified pre-owned vehicle for under $30K with a very good warranty from the dealer - RAV4, tons of sedans including hybrids, pickup trucks, etc.[/quote]

That's the median HHI. If two people work and each needs a car, median income matters, not HHI. Even if you want to use HHI, that 26k for a car needs to be split across two drivers. 13k will not get you much [/quote]

Vast majority of families are not buying two cars in a year, so that point is moot.

I said what I said.

If you can keep your car purchase price to 20% of gross HHI for any given year, you're living within your means. And then keep that car for at least 5 years. I think this is reasonable.[/quote]

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