So cars these days are really about status symbols. Cars are so much better and more reliable that when you choose to spend more say over 40K for a new car you are choosing to make a statement rather than anything to do with longevity or performance. In this area, even a Ferrari will be stuck in traffic most of the time, so it becomes your call. Does 10K to 20K matter to you for a better brand? If so, and you can afford, it, why not, as you are basically just trading that brand for a vacation, your call. But if you think there is a strong correlation between how much you pay for a car and whaty ou will get out of it, well that seems totally wrong.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.
Based on most answers here, that doesn’t sound crazy. That’s only 33% of our annual income.

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.

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.

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?

Anonymous wrote:

Anonymous wrote: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.
Based on most answers here, that doesn’t sound crazy. That’s only 33% of our annual income.

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.

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.

Anonymous wrote:

Anonymous wrote:HHI is $375K. We have two kids with daycare costs and save aggressively for kids college and our retirement - so we don't pay over $50K per car (2 total), and tend to keep them for 8-10 yrs. We currently drive an Audi Q5 and A4

Lies! No way an Audi will last more than 5 years.

If you can only afford the "lease specials", you can't afford to keep any car for more than 5 years without proper maintenance. We are a HH with 3 drivers and 5 cars, all Germans, all paid for. 1 is 30 years old antique, 1 is 21 years old near-antique, 1 is 10 years old, and the remaining 2 are 7-8 years old. All in pristine conditions.

Anonymous wrote: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.
Based on most answers here, that doesn’t sound crazy. That’s only 33% of our annual income.

it is definitely reasonable

Anonymous wrote:Dave Ramsey NP here, OP is debt free and assuming on target with other savings goals can afford a nicer car and asked for a benchmark similar to housing benchmarks. Obviously, DR did not mean for this to be a hard and fast rule. Personal finance is personal and other people have more debt and little savings and couldn't afford the bill for the 3% car. The point OP, is don't go out and get a loan on two Land Rovers with your 300k when the money could be working for you. I would ask the rest of you what your discretionary spending is on your hobbies? Ops DH likes cars!

I think people are confusing OP with the PP who came in earlier making fun of Acuras -- OP has never said that cars are their hobby, just that they "like to drive nice ones and not clunkers."

OP I think you're planning to spend too much on cars, but your finances are such that it's not a mistake that's going to ruin your life like it would if you made $45k/year or something. Although I notice you didn't say anything about children (could make a real difference in how far $300k stretches and whether you are on okay or quite solid financial footing) or your housing, so either you rent (still no debt, but maybe not the best plan for building wealth) or you have paid off your mortgage (in which case buy your luxury cars, why not?).

Dave Ramsey NP here, OP is debt free and assuming on target with other savings goals can afford a nicer car and asked for a benchmark similar to housing benchmarks. Obviously, DR did not mean for this to be a hard and fast rule. Personal finance is personal and other people have more debt and little savings and couldn't afford the bill for the 3% car. The point OP, is don't go out and get a loan on two Land Rovers with your 300k when the money could be working for you. I would ask the rest of you what your discretionary spending is on your hobbies? Ops DH likes cars!

Anonymous wrote: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.
Based on most answers here, that doesn’t sound crazy. That’s only 33% of our annual income.

I am not a car person but have about your HHi. If you are going to keep it 5+ years, very reasonable.

I have a hobby I spend about 10k a year on and a cheap car....if cars are your thing, go for it! We have great retirement savings, college funds, etc.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.
Based on most answers here, that doesn’t sound crazy. That’s only 33% of our annual income.

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.

NP but someone posted that Dave Ramsay said cars shouldn't exceed 50% of HHI. $100k for 2 cars based on $300k HHI follows that just fine...

If you followed the link it says: "We're going to buy on a ratio of our financial situation. We're not going to buy a new car—ever—until you're worth at least $1 million. You're not going to have the total of all your vehicles ever—except in very rare circumstances—be over half of your annual income." Not exactly endorsing dropping $100k on new cars in a year, because "it's time to replace" cars with something nice.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.
Based on most answers here, that doesn’t sound crazy. That’s only 33% of our annual income.

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.

NP but someone posted that Dave Ramsay said cars shouldn't exceed 50% of HHI. $100k for 2 cars based on $300k HHI follows that just fine...

I’d like to see the Dave Ramsay comment linked and in context. It does not seem to go with his other opinions. DH makes $250k and I SAH and it would be tight to own $125k worth of cars and still meet our savings goals for retirement, college, and vacations. We spend ~$40-45k on the family car (mine) and ~$25-30k on DH’s and keep them about 8 years (but stagger them so we replace one every 4.)

Sounds like a very smart approach.

I buy 3 year old Mercedes coming off leases and generally save 30%-40% less than the original price. They usually have around 20,000 miles and I buy the ones that are certified pre-owned. I'm not a car fanatic but I do like nice cars and keep them for a long time. The E350 costs used $35-40,000 which if you keep it for 5-7 years is very affordable for someone making $150,000.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.
Based on most answers here, that doesn’t sound crazy. That’s only 33% of our annual income.

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.

NP but someone posted that Dave Ramsay said cars shouldn't exceed 50% of HHI. $100k for 2 cars based on $300k HHI follows that just fine...

I’d like to see the Dave Ramsay comment linked and in context. It does not seem to go with his other opinions. DH makes $250k and I SAH and it would be tight to own $125k worth of cars and still meet our savings goals for retirement, college, and vacations. We spend ~$40-45k on the family car (mine) and ~$25-30k on DH’s and keep them about 8 years (but stagger them so we replace one every 4.)

Anonymous wrote:

Anonymous wrote: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.
Based on most answers here, that doesn’t sound crazy. That’s only 33% of our annual income.

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.

NP but someone posted that Dave Ramsay said cars shouldn't exceed 50% of HHI. $100k for 2 cars based on $300k HHI follows that just fine...

Anonymous wrote: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.
Based on most answers here, that doesn’t sound crazy. That’s only 33% of our annual income.

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.

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.
Based on most answers here, that doesn’t sound crazy. That’s only 33% of our annual income.