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Old 06-20-2012, 10:07 AM
 
Location: Whittier
2,096 posts, read 2,066,946 times
Reputation: 1493
I see a lot of BMWs and Lexuses and Benzes where I live so I just assumed they were all leases.

Even if you could afford payments (and assuming you're buying) you're still talking around $2000-$4000k+ in car expenses (payments, insurance, gas, registration, maintenance.)

Figure if they own a house and have kids, you'd need to be making 150-200k just to afford all of it. (In SoCal).

So either they're leasing (which effectively halves the payments); are single with a decent income and renting, or are DINKs and renting, or DIWK but make very good money and own a house.

Some buy used, but many find out that, that 335i even though it's only a few years old, it out of warranty and costs more per month to maintain, then their car payment.
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Old 06-20-2012, 01:08 PM
 
1 posts, read 1,710 times
Reputation: 10
I'm 25, make € 48k, which is around $ 60k (for the economics-savvy, and I see there's been a pretty funny discussion about intelligence, haha... Yes, I know purchasing power parity does not fully apply across currencies/continental economies). So somewhere between 55k-60k in dollar terms.
I drive a 1990 Honda Accord and when I look at cars to replace it with (always on the lookout to improve fuel economy), I just cannot imagine buying anything over 10k right now. Never mind leasing something... If I could I'd also like to replace it with a nice Audi TT... but I gotta say I love the Honda. Great car. It also turns heads actually, but for the less desirable reason that it is a fossil on wheels. But probably a dinosaur bone fossil then, because it strong as hell. Just keeps going and has never failed to start even once. Just keeps going this thing.
Saw a 2nd hand TT at 16k. Maybe next year.
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Old 06-21-2012, 06:54 AM
 
189 posts, read 161,585 times
Reputation: 202
Net worth, not net income, should be driving factor on whether one can really "afford" a luxury car. Paying $800 - $1000 a month for a car when your net worth is under 1 million dollars is not a wise financial decision.
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Old 06-21-2012, 07:04 AM
 
Location: West Texas
1,913 posts, read 1,138,260 times
Reputation: 884
Why didnt you pay cash 16K for the car?
Quote:
Originally Posted by helloimage View Post
I've never had a credit card...I have no history of credit. I buy everything cash. Once I wanted to buy a car, was around 16K, I make around 100K a year and my partner makes around the same ea. year. The car dealer denied me LOL. Because I have no credit. Anyway, I knew they would.

Anyway, I know people who make 10 dollars an hour and drive 20 K cars. I don't get it.
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Old 06-21-2012, 09:41 AM
 
250 posts, read 186,614 times
Reputation: 273
Quote:
Originally Posted by munna21977 View Post
Why didnt you pay cash 16K for the car?
I eventually did at another dealer. When I saw that car I wanted it was kind of last minute. I was at a Target shopping lol and I saw this car at a dealership and I was like "I have to have this today". I was looking for a newer car anyway because my old car and giving my problems. So I saved and bought it cash the following week.
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Old 06-21-2012, 01:20 PM
 
573 posts, read 366,142 times
Reputation: 512
Quote:
Originally Posted by NJBOSCH View Post
Net worth, not net income, should be driving factor on whether one can really "afford" a luxury car. Paying $800 - $1000 a month for a car when your net worth is under 1 million dollars is not a wise financial decision.
Seriously.

I'm not sure why people focus on income when talking about wealth when, as you said, it's about net worth. One can make $200k a year, but if they have student loans totaling $200k (common for white collar professionals with med/law/mba degrees), a mortgage of $300k, and credit card debt of $20k, they have no business buying a luxury car.
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Old 06-22-2012, 07:03 PM
 
Location: The west
1,408 posts, read 979,704 times
Reputation: 1299
I'm dirt poor, homeless (typing this in the local library) and I drive a Ferrari. Go figure...
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Old 06-22-2012, 08:37 PM
 
1,222 posts, read 1,331,554 times
Reputation: 870
Quote:
Originally Posted by MountainBiking View Post
I'm dirt poor, homeless (typing this in the local library) and I drive a Ferrari. Go figure...
Technically you can sell the ferrari and you'd have money and maybe not homeless.
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Old 06-23-2012, 08:25 AM
 
4,982 posts, read 5,420,004 times
Reputation: 5394
This has been an interesting thread to read. I can understand how some people think spending X amount on a car is ridiculous or a waste of money. What I find humorous, however, is how many people here think that those of us who spend close to or even over six figures to drive so-called luxury cars do so to garner attention. Nothing could be further from the truth. We do so because we like the particular car that we've purchased. Usually this entails a combination of styling, driving performance, safety features, luxurious interior (including amazing sound/entertainment systems), and other amenities.

Whether we're driving down the highway or stopped at a red light, we're not concerned with what the guy or girl in the next car over thinks about us. We're just enjoying the 1200 watt, 20-speaker surround sound entertainment system we're listening to, possibly getting a seat/lumbar massage at the time, and just enjoying the overall driving experience. If you think of driving as being able to get from Point A to Point B as cheaply and/or efficiently as possible, more power to you. But some of us think that there is more to it than that.

The bottom line is we bought our car for our enjoyment, not to impress you.
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Old 06-23-2012, 12:16 PM
 
Location: NJ
17,580 posts, read 18,148,870 times
Reputation: 15314
Quote:
Originally Posted by MadManofBethesda View Post

The bottom line is we bought our car for our enjoyment, not to impress you.
Don't you know the rules.

1. Anyone who has a car that costs more than mine is wasting their money and only trying to show off.
2. Anyone who has a car that costs less than mine is cheap.
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