How much car can i afford

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H-Town
Posts: 2226
Joined: Sun Feb 26, 2017 2:08 pm

Re: How much car can i afford

Post by H-Town » Tue Dec 10, 2019 12:43 pm

stt816 wrote:
Sat Dec 07, 2019 5:28 pm
Hi I've had the same car since 2012. I'm 28 years old... While its a great car and never gave me problems, I want something new (to me) can be used

I've always been a "car guy" and it's what makes me happy. I'm not trying to impress others I just truly love them. I was wondering what I can afford comfortably. My car could get traded in for around 15k.

Salary-88k
Checkings-24k
Emergency-10k
Individual Stocks-70k
Roth IRA-9k
401k-20k

Saving around 10-12k per year into roth/401k

I also bought a multi family home (120k down) and I rent my unit. My "rent" is 700 per month. Besides that, no debt.
It's hard to think you would get 15k for trade-in a 2012 camaro. Was it the SS? A 2012 Camaro SS with 50k miles is listed for 15k from dealership.

My 2012 Camaro LT1 RS (bought used for $21k) just crossed 135k miles mark and it's still going strong. The car is worth roughly $5k on a used car market. And I plan to keep it at least for the next 3 years. I know that if I buy another car right now, I would not get the same driving experience for anything less than 30k.

I don't know what do you get value from a new Camaro gen 6. The new look? The new tech? The Alfa chassis? Those are not worth $30k IMO. I would just rent a new Camaro SS and take it to the track on the weekends. Then keep your 2012 Camaro as the daily driver until it got past 200k miles.

SeaToTheBay
Posts: 177
Joined: Thu Jun 08, 2017 6:11 pm

Re: How much car can i afford

Post by SeaToTheBay » Tue Dec 10, 2019 1:35 pm

H-Town wrote:
Tue Dec 10, 2019 12:43 pm
I would just rent a new Camaro SS and take it to the track on the weekends. Then keep your 2012 Camaro as the daily driver until it got past 200k miles.
I don't think any rental agency or private renter would take too kindly to track use...

H-Town
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Re: How much car can i afford

Post by H-Town » Tue Dec 10, 2019 1:49 pm

SeaToTheBay wrote:
Tue Dec 10, 2019 1:35 pm
H-Town wrote:
Tue Dec 10, 2019 12:43 pm
I would just rent a new Camaro SS and take it to the track on the weekends. Then keep your 2012 Camaro as the daily driver until it got past 200k miles.
I don't think any rental agency or private renter would take too kindly to track use...
Hertz has Camaro ZL1 for rent. They're not that innocent to offer performance car without knowing there's a possibility that it would be pushed to the limit. After all, those performance cars are engineered for this purpose.

SeaToTheBay
Posts: 177
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Re: How much car can i afford

Post by SeaToTheBay » Tue Dec 10, 2019 1:58 pm

H-Town wrote:
Tue Dec 10, 2019 1:49 pm
Hertz has Camaro ZL1 for rent. They're not that innocent to offer performance car without knowing there's a possibility that it would be pushed to the limit. After all, those performance cars are engineered for this purpose.
I'd check the fine print to be sure. The tires and brakes on that thing are far from cheap, and would likely accumulate quite a bit of wear given the power and weight of that car.

Taking the punishment is one thing. Accruing wear exceeding what the rental costs is another.

alfaspider
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Joined: Wed Sep 09, 2015 4:44 pm

Re: How much car can i afford

Post by alfaspider » Tue Dec 10, 2019 2:20 pm

H-Town wrote:
Tue Dec 10, 2019 1:49 pm
SeaToTheBay wrote:
Tue Dec 10, 2019 1:35 pm
H-Town wrote:
Tue Dec 10, 2019 12:43 pm
I would just rent a new Camaro SS and take it to the track on the weekends. Then keep your 2012 Camaro as the daily driver until it got past 200k miles.
I don't think any rental agency or private renter would take too kindly to track use...
Hertz has Camaro ZL1 for rent. They're not that innocent to offer performance car without knowing there's a possibility that it would be pushed to the limit. After all, those performance cars are engineered for this purpose.
Almost all rental companies prohibit track use (I've gone so far as to read the rental agreements to check), and I'd expect the ZL1 has a GPS tracker to make sure it's not taken there. The ZL1 may be track ready out of the box, but you could easily toast a set of tires and pads in a track weekend. On a ZL-1, that's probably a $3-4k proposition. Also, if you bin it, your insurance likely won't pay out, and it is likely difficult to get track insurance on a car you don't own (can't take out the policy without a VIN, but it tends to require advance purchase).

If you want to learn track driving (doesn't sound like the OP has track experience), you absolutely DO NOT want to start with a fire breathing monster like the ZL-1. It would be like learning to fly an airplane for the first time with an F-22.

As for the OP's dilemma: "How much can I afford?" Is the wrong question. The correct question is "how much should I spend?" I posit that a "nice" car and a fun car aren't the same thing. A Mercedes S class is nice, but boring (even if reasonably quick in a straight line). A Lotus Exige is about as spartan as a modern-ish car gets, but tons of fun. Don't get caught up in the trap of thinking you have to spend more to have more fun in cars. You'll have a lot more fun hammering a $5k Miata on the track than driving a $300,000 Ferrari at 30mph on city streets.

DaftInvestor
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Re: How much car can i afford

Post by DaftInvestor » Tue Dec 10, 2019 2:25 pm

Since you didn't mention a wife and kids I assume you have no obligations to anyone other than yourself(?) If that is the case it seems to me you can easily afford a $40K Car if you want (since you have $24K in checking and a $15K trade-in).

(Side-note - I assume you have a checking account that pays interest? Otherwise you should slide that into an online savings account that will give you close to 2%).

Topic Author
stt816
Posts: 90
Joined: Wed Nov 07, 2018 4:59 pm

Re: How much car can i afford

Post by stt816 » Tue Dec 10, 2019 2:44 pm

H-Town wrote:
Tue Dec 10, 2019 12:43 pm
stt816 wrote:
Sat Dec 07, 2019 5:28 pm
Hi I've had the same car since 2012. I'm 28 years old... While its a great car and never gave me problems, I want something new (to me) can be used

I've always been a "car guy" and it's what makes me happy. I'm not trying to impress others I just truly love them. I was wondering what I can afford comfortably. My car could get traded in for around 15k.

Salary-88k
Checkings-24k
Emergency-10k
Individual Stocks-70k
Roth IRA-9k
401k-20k

Saving around 10-12k per year into roth/401k

I also bought a multi family home (120k down) and I rent my unit. My "rent" is 700 per month. Besides that, no debt.
It's hard to think you would get 15k for trade-in a 2012 camaro. Was it the SS? A 2012 Camaro SS with 50k miles is listed for 15k from dealership.

My 2012 Camaro LT1 RS (bought used for $21k) just crossed 135k miles mark and it's still going strong. The car is worth roughly $5k on a used car market. And I plan to keep it at least for the next 3 years. I know that if I buy another car right now, I would not get the same driving experience for anything less than 30k.

I don't know what do you get value from a new Camaro gen 6. The new look? The new tech? The Alfa chassis? Those are not worth $30k IMO. I would just rent a new Camaro SS and take it to the track on the weekends. Then keep your 2012 Camaro as the daily driver until it got past 200k miles.

2012 Camaro 2ss with an rs package. It's the real deal to all those wondering how I could get 15k for it. I like it, it's just wanting something different after almost 8 years.

To answer the other guys question. Yes I'm single, only myself to worry about...trying to keep it that way 8-) 8-) 8-)

rascott
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Joined: Wed Apr 15, 2015 10:53 am

Re: How much car can i afford

Post by rascott » Thu Dec 12, 2019 4:48 pm

However much you can afford to light on fire and never see again.

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geerhardusvos
Posts: 162
Joined: Wed Oct 23, 2019 10:20 pm

Re: How much car can i afford

Post by geerhardusvos » Thu Dec 12, 2019 10:47 pm

stt816 wrote:
Sat Dec 07, 2019 5:28 pm
Hi I've had the same car since 2012. I'm 28 years old... While its a great car and never gave me problems, I want something new (to me) can be used

I've always been a "car guy" and it's what makes me happy. I'm not trying to impress others I just truly love them. I was wondering what I can afford comfortably. My car could get traded in for around 15k.

Salary-88k
Checkings-24k
Emergency-10k
Individual Stocks-70k
Roth IRA-9k
401k-20k

Saving around 10-12k per year into roth/401k

I also bought a multi family home (120k down) and I rent my unit. My "rent" is 700 per month. Besides that, no debt.
I am your same age and have no debt and $500,000 in my portfolio, and only make 50 K more per year than you. Would you like to buy your freedom? Or would you rather work an additional 10 to 20 years chasing cars you can’t afford? I drive a 1998 Subaru that I’ve had since I was 16 years old and I drive into my tech job every day with that little b***h
VTSAX and chill

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watchnerd
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Location: Seattle, WA, USA

Re: How much car can i afford

Post by watchnerd » Thu Dec 12, 2019 11:34 pm

geerhardusvos wrote:
Thu Dec 12, 2019 10:47 pm
stt816 wrote:
Sat Dec 07, 2019 5:28 pm
Hi I've had the same car since 2012. I'm 28 years old... While its a great car and never gave me problems, I want something new (to me) can be used

I've always been a "car guy" and it's what makes me happy. I'm not trying to impress others I just truly love them. I was wondering what I can afford comfortably. My car could get traded in for around 15k.

Salary-88k
Checkings-24k
Emergency-10k
Individual Stocks-70k
Roth IRA-9k
401k-20k

Saving around 10-12k per year into roth/401k

I also bought a multi family home (120k down) and I rent my unit. My "rent" is 700 per month. Besides that, no debt.
I am your same age and have no debt and $500,000 in my portfolio, and only make 50 K more per year than you. Would you like to buy your freedom? Or would you rather work an additional 10 to 20 years chasing cars you can’t afford? I drive a 1998 Subaru that I’ve had since I was 16 years old and I drive into my tech job every day with that little b***h
I likewise drove my mom's Toyota Camry, the same car I learned to drive on at 16, gifted to me at college, for my first years in the tech industry. I didn't buy a new car until I drove that Camry into the dirt by age 30.

It was hard on the car, but served my port very very well in the long run, especially at such a young age.
70% Global Market Weight Equities | 15% Long Treasuries 15% short TIPS & cash || RSU + ESPP

H-Town
Posts: 2226
Joined: Sun Feb 26, 2017 2:08 pm

Re: How much car can i afford

Post by H-Town » Fri Dec 13, 2019 12:18 am

rascott wrote:
Thu Dec 12, 2019 4:48 pm
However much you can afford to light on fire and never see again.
0 dollar and 0 cents.

rascott
Posts: 1244
Joined: Wed Apr 15, 2015 10:53 am

Re: How much car can i afford

Post by rascott » Fri Dec 13, 2019 12:37 am

stt816 wrote:
Tue Dec 10, 2019 2:44 pm
H-Town wrote:
Tue Dec 10, 2019 12:43 pm
stt816 wrote:
Sat Dec 07, 2019 5:28 pm
Hi I've had the same car since 2012. I'm 28 years old... While its a great car and never gave me problems, I want something new (to me) can be used

I've always been a "car guy" and it's what makes me happy. I'm not trying to impress others I just truly love them. I was wondering what I can afford comfortably. My car could get traded in for around 15k.

Salary-88k
Checkings-24k
Emergency-10k
Individual Stocks-70k
Roth IRA-9k
401k-20k

Saving around 10-12k per year into roth/401k

I also bought a multi family home (120k down) and I rent my unit. My "rent" is 700 per month. Besides that, no debt.
It's hard to think you would get 15k for trade-in a 2012 camaro. Was it the SS? A 2012 Camaro SS with 50k miles is listed for 15k from dealership.

My 2012 Camaro LT1 RS (bought used for $21k) just crossed 135k miles mark and it's still going strong. The car is worth roughly $5k on a used car market. And I plan to keep it at least for the next 3 years. I know that if I buy another car right now, I would not get the same driving experience for anything less than 30k.

I don't know what do you get value from a new Camaro gen 6. The new look? The new tech? The Alfa chassis? Those are not worth $30k IMO. I would just rent a new Camaro SS and take it to the track on the weekends. Then keep your 2012 Camaro as the daily driver until it got past 200k miles.

2012 Camaro 2ss with an rs package. It's the real deal to all those wondering how I could get 15k for it. I like it, it's just wanting something different after almost 8 years.

To answer the other guys question. Yes I'm single, only myself to worry about...trying to keep it that way 8-) 8-) 8-)

You should have things in life that your enjoy.... it's why we work. That said, why not just find something new to you that's only a minor step up in price. That can scratch the itch.

msk
Posts: 1439
Joined: Mon Aug 15, 2016 10:40 am

Re: How much car can i afford

Post by msk » Fri Dec 13, 2019 5:20 am

LoL. Asking BHs about buying toys... Here are my life principles that worked well for me, now aged 75 with an 8-figure 100% stocks portfolio:

1. Save and INVEST (!) 30% of after tax income. Paying off principal on your home mortgage counts in, not the interest and not consumables like cars.
2. Never spend more than 3x income on a home (2.5x combined income)
3. Never acquire car(s) by purchase or lease worth more than 6 months income. Unimportant how you pay for it.

YOLO! You only live once. Enjoy! We often forget to include investment income, say, 5% on our invested savings. That starts being substantial once you have a million+$ portfolio. At that stage you can spend more cash on "wants", like that C8, etc. provided it's part of your spendable 70%. Never, ever compromise on 1. above; and you will very probably have both a fun life and a great retirement. I did.

Sand101
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Joined: Sat Jan 24, 2015 11:17 pm

Re: How much car can i afford

Post by Sand101 » Sat Jan 11, 2020 6:23 pm

sk2101 wrote:
Tue Dec 10, 2019 10:57 am
Sand101 wrote:
Sat Dec 07, 2019 9:38 pm
sad2 wrote:
Sat Dec 07, 2019 7:27 pm

.1% of net worth for a road bike
So you need 2M for a decent road bike? Heresy. Heck, at this point my bike is worth more than my car.
Each of my bikes are worth more than my car. Priorities... Just upgraded the road bike to a new $12.5K model, I guess what I save in cars and on medical bills I spend on bikes.
Since I got my S5 a number of years back I have cured myself of upgrade-itis. Still looks fast - way faster these days than the engine.

EnjoyIt
Posts: 3123
Joined: Sun Dec 29, 2013 8:06 pm

Re: How much car can i afford

Post by EnjoyIt » Sat Jan 11, 2020 8:44 pm

Sand101 wrote:
Sat Jan 11, 2020 6:23 pm
sk2101 wrote:
Tue Dec 10, 2019 10:57 am
Sand101 wrote:
Sat Dec 07, 2019 9:38 pm
sad2 wrote:
Sat Dec 07, 2019 7:27 pm

.1% of net worth for a road bike
So you need 2M for a decent road bike? Heresy. Heck, at this point my bike is worth more than my car.
Each of my bikes are worth more than my car. Priorities... Just upgraded the road bike to a new $12.5K model, I guess what I save in cars and on medical bills I spend on bikes.
Since I got my S5 a number of years back I have cured myself of upgrade-itis. Still looks fast - way faster these days than the engine.
Take a look at some of the options to make the car faster. It will cure upgrade-itis if it ever comes up again. For your car there is a relatively cheep upgrade to the electronic control unit (ECU) that will add significant horsepower and torque to the car.
This can be done to many model cars that is forced induction (supercharger or turbo.) It will void your warranty, but you are likely out of warranty already.

finite_difference
Posts: 1542
Joined: Thu Jul 09, 2015 7:00 pm

Re: How much car can i afford

Post by finite_difference » Sat Jan 11, 2020 9:02 pm

EnjoyIt wrote:
Sat Jan 11, 2020 8:44 pm
Sand101 wrote:
Sat Jan 11, 2020 6:23 pm
sk2101 wrote:
Tue Dec 10, 2019 10:57 am
Sand101 wrote:
Sat Dec 07, 2019 9:38 pm
sad2 wrote:
Sat Dec 07, 2019 7:27 pm

.1% of net worth for a road bike
So you need 2M for a decent road bike? Heresy. Heck, at this point my bike is worth more than my car.
Each of my bikes are worth more than my car. Priorities... Just upgraded the road bike to a new $12.5K model, I guess what I save in cars and on medical bills I spend on bikes.
Since I got my S5 a number of years back I have cured myself of upgrade-itis. Still looks fast - way faster these days than the engine.
Take a look at some of the options to make the car faster. It will cure upgrade-itis if it ever comes up again. For your car there is a relatively cheep upgrade to the electronic control unit (ECU) that will add significant horsepower and torque to the car.
This can be done to many model cars that is forced induction (supercharger or turbo.) It will void your warranty, but you are likely out of warranty already.
I am intrigued his answer. How much does it cost? How much hp/torque does it add?
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh

Financologist
Posts: 48
Joined: Wed Jan 01, 2020 11:16 pm

Re: How much car can i afford

Post by Financologist » Sat Jan 11, 2020 9:41 pm

Appreciate your love of cars and think you should use your money to do the things that make you happy. That being said would you consider keeping your car for a few more years and pursuing your love of cars through alternative means? For example you could test drive amazing cars as part of a three or four-year research project. You could keep an eye out for Ferraris and the like to rent for a day or two. You could go to racing schools and car shows.

I love art so I visit museums. Do your best to abandon the need to own the things you love and you will grow wealthy.

Good luck

EnjoyIt
Posts: 3123
Joined: Sun Dec 29, 2013 8:06 pm

Re: How much car can i afford

Post by EnjoyIt » Sat Jan 11, 2020 11:09 pm

finite_difference wrote:
Sat Jan 11, 2020 9:02 pm
EnjoyIt wrote:
Sat Jan 11, 2020 8:44 pm
Sand101 wrote:
Sat Jan 11, 2020 6:23 pm
sk2101 wrote:
Tue Dec 10, 2019 10:57 am
Sand101 wrote:
Sat Dec 07, 2019 9:38 pm


So you need 2M for a decent road bike? Heresy. Heck, at this point my bike is worth more than my car.
Each of my bikes are worth more than my car. Priorities... Just upgraded the road bike to a new $12.5K model, I guess what I save in cars and on medical bills I spend on bikes.
Since I got my S5 a number of years back I have cured myself of upgrade-itis. Still looks fast - way faster these days than the engine.
Take a look at some of the options to make the car faster. It will cure upgrade-itis if it ever comes up again. For your car there is a relatively cheep upgrade to the electronic control unit (ECU) that will add significant horsepower and torque to the car.
This can be done to many model cars that is forced induction (supercharger or turbo.) It will void your warranty, but you are likely out of warranty already.
I am intrigued his answer. How much does it cost? How much hp/torque does it add?
about to send a pm

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sk2101
Posts: 409
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Re: How much car can i afford

Post by sk2101 » Mon Jan 13, 2020 4:02 pm

Sand101 wrote:
Sat Jan 11, 2020 6:23 pm
sk2101 wrote:
Tue Dec 10, 2019 10:57 am
Sand101 wrote:
Sat Dec 07, 2019 9:38 pm
sad2 wrote:
Sat Dec 07, 2019 7:27 pm

.1% of net worth for a road bike
So you need 2M for a decent road bike? Heresy. Heck, at this point my bike is worth more than my car.
Each of my bikes are worth more than my car. Priorities... Just upgraded the road bike to a new $12.5K model, I guess what I save in cars and on medical bills I spend on bikes.
Since I got my S5 a number of years back I have cured myself of upgrade-itis. Still looks fast - way faster these days than the engine.
Have you seen the new S5? It will give you an itch to upgrade. For 2020 there is now a etap axs 12 speed version... $12K MSRP. I know, nor very bogleheadish-

aristotelian
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Re: How much car can i afford

Post by aristotelian » Mon Jan 13, 2020 4:13 pm

"How much car can I afford?" is the question most Americans ask but that does not mean it is the right question. How about "what is the least car that meets my needs?"

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willthrill81
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Location: USA

Re: How much car can i afford

Post by willthrill81 » Mon Jan 13, 2020 5:02 pm

aristotelian wrote:
Mon Jan 13, 2020 4:13 pm
"How much car can I afford?" is the question most Americans ask but that does not mean it is the right question. How about "what is the least car that meets my needs?"
I don't agree. If people are saving enough to meet their long-term goals, then it doesn't really matter how much they are spending on their car, assuming that they aren't going into debt.

We spent about $20k on a new SUV two years ago. We could have spent $2k, but we've gotten a lot of value out of our purchase and have still been saving 50% of our gross income. So it really doesn't matter that we spent more than we absolutely had to.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

klondike
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Re: How much car can i afford

Post by klondike » Mon Jan 13, 2020 5:12 pm

OP, when I was your age, I have half of your income, $27K total net worth and a pregnant wife who didn't work outside the house. My car was 50% of my net worth :oops: . Now I'm 46, I have 3 nicer cars totaling less than 1% of my net worth.

You certainly can afford a nice car like a new Porsche or a used Ferrari or Lamborghini. If I were you, I would spend up to $50K for a car.

aristotelian
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Re: How much car can i afford

Post by aristotelian » Mon Jan 13, 2020 5:21 pm

willthrill81 wrote:
Mon Jan 13, 2020 5:02 pm
aristotelian wrote:
Mon Jan 13, 2020 4:13 pm
"How much car can I afford?" is the question most Americans ask but that does not mean it is the right question. How about "what is the least car that meets my needs?"
I don't agree. If people are saving enough to meet their long-term goals, then it doesn't really matter how much they are spending on their car, assuming that they aren't going into debt.

We spent about $20k on a new SUV two years ago. We could have spent $2k, but we've gotten a lot of value out of our purchase and have still been saving 50% of our gross income. So it really doesn't matter that we spent more than we absolutely had to.
I am guessing you could have afforded a lot more than the SUV. Sounds like your question was "What car will give me the best value". That is also a different question from OP.

rbaldini
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Re: How much car can i afford

Post by rbaldini » Mon Jan 13, 2020 5:23 pm

Ask not "how much can I spend on x"?

Ask "how much do I need/want to save?" Save that amount.

Then spend the rest of your money on literally whatever you want. It doesn't matter.

This is the answer to any question about expenditure on this forum. Bogleheads don't (or shouldn't) care how you spend, just how you save and invest.

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willthrill81
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Location: USA

Re: How much car can i afford

Post by willthrill81 » Mon Jan 13, 2020 5:25 pm

aristotelian wrote:
Mon Jan 13, 2020 5:21 pm
willthrill81 wrote:
Mon Jan 13, 2020 5:02 pm
aristotelian wrote:
Mon Jan 13, 2020 4:13 pm
"How much car can I afford?" is the question most Americans ask but that does not mean it is the right question. How about "what is the least car that meets my needs?"
I don't agree. If people are saving enough to meet their long-term goals, then it doesn't really matter how much they are spending on their car, assuming that they aren't going into debt.

We spent about $20k on a new SUV two years ago. We could have spent $2k, but we've gotten a lot of value out of our purchase and have still been saving 50% of our gross income. So it really doesn't matter that we spent more than we absolutely had to.
I am guessing you could have afforded a lot more than the SUV. Sounds like your question was "What car will give me the best value". That is also a different question from OP.
Yes, we definitely seek to maximize our value (i.e. benefits received for the cost experienced) in most areas of spending, especially those involving significant amounts of money. And I agree that that is not the OP's question.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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MilburnJr
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Re: How much car can i afford

Post by MilburnJr » Wed Jan 15, 2020 6:44 pm

stt816 wrote:
Sat Dec 07, 2019 6:58 pm
I just saw that dave ramsey recommends 50% of your salary in anything that has an engine in it

so if you make 100k a year 50k in one car or 25k each for 2 cars

Am i getting that right? Does he mean before taxes or after?
I think you may have misunderstood. Dave will tell folks to never exceed 50% of your salary in anything that has a motor in it. I interpret that as trying to stay as far away from that 50% number that I can stand. When I was your age I was pretty much in the same financial boat as you. I splurged and bought a 30k sports car. Man it was fun and I enjoyed it. But it soon wore off. If I had just kept my current car instead of splurging I would have made more in gains than the car cost over a short period of time (5 or so years).

On the other hand you are young enough and should be able to enjoy what you get. The trick is finding balance in between. Ask your future self (the 38 year old stt816) if he'd rather splurge now or later.

Good Luck!
This communication may be monitored for quality assurance purposes.

mountain-lion
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Re: How much car can i afford

Post by mountain-lion » Wed Jan 15, 2020 7:03 pm

MilburnJr wrote:
Wed Jan 15, 2020 6:44 pm
I think you may have misunderstood. Dave will tell folks to never exceed 50% of your salary in anything that has a motor in it. I interpret that as trying to stay as far away from that 50% number that I can stand.
That's even more conservative than Dave recommends. Which is fine if that is your risk tolerance and attitude toward money, but that is not Dave's recommendation. (Never mind to whom Dave makes his normal recommendations.)

Super frugalling is fun. I do it myself, but I try not to confuse my preference with what most people should do, or what various experts recommend.

If frugality is the prime value, one can always justify being more frugal. And pretty soon instead of debating about what car fits one's wants and needs, one is debating which thrift-store has the best used tennis shoes.

Money is a means to various ends. If your plan reasonable and within your risk tolerances, then there is no need to go overboard on frugality.

fyre4ce
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Re: How much car can i afford

Post by fyre4ce » Wed Jan 15, 2020 8:10 pm

stt816 wrote:
Sat Dec 07, 2019 6:58 pm
I just saw that dave ramsey recommends 50% of your salary in anything that has an engine in it

so if you make 100k a year 50k in one car or 25k each for 2 cars

Am i getting that right? Does he mean before taxes or after?
I think Dave Ramsey's number is too high. 25% of annual gross income for all cars is my number, for the value of the car. Stick under 25% if you want to become wealthy. A decent used car can be had for $5,000. Anything above that is discretionary.

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