How much is your net; How much your car payment? (rental, insurance)
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Net income: I'll just call it middle class
Car purchase price: (2) one new, several years ago, under $20k; one used, several years ago, also under $20k.
Monthly payment: $0. Both were paid off a five years ago.
Repairs: About $5,000 total for both over last 5 years.
Lesson learned? Repairing older paid off cars is a lot cheaper than making payments. I used to have "repair bill phobia" and would use that to justify trading in a used car for something newer. I fell into the trap of thinking that making payments on a low mileage car was cheaper than major repairs on an older paid off vehicle.
That $5k in repairs (brakes, tires, shocks, batteries, timing belts, plus other stuff that broke) over 5 years works out to about $83 per month for both, or $42 per month for each. Far, far cheaper than a monthly payment. I expect those repairs to provide at least another 5 years of useful life. 200k mile engines are common now and both vehicles are well under that.
Car insurance and registration are cheaper on older vehicles, so I save money there as well.
Some people enjoy the thrill of driving the latest and greatest of new cars and don't mind paying for it. That's fine. I now look at vehicles only for utility, to go from A to B with reasonable safety and comfort, with the best economics.
Some people enjoy the thrill of driving the latest and greatest of new cars and don't mind paying for it. That's fine. I now look at vehicles only for utility, to go from A to B with reasonable safety and comfort, with the best economics.
Both viewpoints are indeed fine. You do not have to get specific but I would guess that many like yourself have other things you would prefer to spend your money on for enjoyment. A vacation perhaps.
Like the Dave Ramsey thread, this too is not nearly enough information to really draw conclusions from in specific situations anyway. Just as net worth is not the single factor in someone's financial well being and ability to afford a depreciating asset, neither is net yearly income.
How much someone can truly afford, and should be willing to spend is depending on the person's complete financial picture, and financial goals.
I have three vehicles and no car payments; I want to keep it that way. The fewer payments you have; the more you can afford. I have known so many people over the years that are maxed out; they cannot keep up with the interest and penalties and they still want to buy more. I always hated the ads: No money, no credit, come on down. Owning, without credit, gives you a peaceful sleep.
Income: It's a pretty recent change, but I'd say that we are just now cracking into "upper middle class" territory, probably entering 6 figures this year.
How much you paid: Car 1 - $9,000 loan paid off early in 2 years. Owned it for 9 years now. Car 2 - A family member inherited a different car and gifted this one to us if we made the needed repairs (about $1,000). It blue books at $1,750 and has been chugging along for over a year with us now.
Monthly payment: $0 for over 7 years! This is literally the primary way we saved up for our house down payments.
Zero. I pay zero for car payments, and haven't had one for 40 some years. Why would one want car payments? Why not save for your next car (I get having payments for the first one, sort of, as long as it is very basic).
I will never buy a new car (haven't since I was 21). I learned really, really quick how expensive that is. I buy gently used vehicles 5-8 years old, for cash, keeping them 4-6 years. My repair costs have never come to more than $1,200 a year, and that was one year only. Most of the time they are less than $500.
Combined with my wifes income, lets say $100000, car payments around $1200.
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