0%. Sold my cars.
Just drive my company vehicle now. Free gas, insurance and maintenance.
Might spend ~50% gross annual income on a toy if our contract gets extended another 2-3 years.
The goal I set for myself is to save around $60k in cash a year on top of 401k and other investments. Whatever is comfortably left after expenses are budgeted can go towards a car. Right now, that's an allowance of up to $950/month for a weekend/fun car. Daily driver is paid off so it's not a necessity if something catastrophic happened.
lol damn, I need a raise.
I'm surprised how few other people in the thread do as well.i paid cash for my last two cars
I'm surprised how few other people in the thread do as well.
I save and pay cash for everything (apart from my house, although I paid 60% cash for that).
I hate owing other people money.
Depends on the bike.
I paid $6500 OTD for my SV650 brand new and sold it 3.5 years later with 17,000 miles on it for $4000. I paid almost $14k OTD for my Ducati 3 years ago and today I could probably get $8k for it... maybe.
My car payment right now is about 7% of my monthly income.
With near-free financing, dropping five figures cash doesn't usually make sense.
I paid cash for all three of mine. They're all worth the same or more than their purchase price, too - happens when you buy old Toyotas with 200k+. They've pretty much stopped depreciating.
You don't have to make payments every month if you pay cash.With near-free financing, dropping five figures cash doesn't usually make sense.
You don't have to make payments every month if you pay cash.
You have a lot more freedom with your finances if you save up a pool and use that rather than relying on someone else lending you money and having to pay a fixed amount to them every month.
You don't have to make payments every month if you pay cash.
You have a lot more freedom with your finances if you save up a pool and use that rather than relying on someone else lending you money and having to pay a fixed amount to them every month.
If you have 100k in the bank and spend 85k on a new toy you'll be in trouble if you suddenly need a 50k medical procedure a month later(and you will feel stupid if you could have financed it almost for free).
How does that give you more freedom exactly? I can save for 5 years with no car and walk to work, or I can pay 200 a month and have a car now, for a nominal cost?
Being stuck with having to pay full price for everything gives you less freedom. Assuming you budget correctly and don't get in over your head (which most people fail to do unfortunately).
I know this varies wildly, just wondering what people consider to be a reasonable amount for a car vs their income. Not talking about outliers like 'i make 200k and drive an 89 civic with 300k on the clock because cars are simply a to b blah blah...'
10% of net income, 20%, 30%?
I'm paying $200/mo (11k used car bought 3 years ago) right now and take home 4500 which I think that is pretty cheap compared to many people. I see $500/mo bmw's everywhere and wonder if people can really afford them...
When you're young and skint buy a cheap car, and save.
Keep doing that until you have enough money to be able to buy a better car whilst still having a pool of savings.
You still have to pay full price for your car if you buy it on credit, it's not free money.
If you have no debt then all of your pay packet is yours to do with as you want. You don't have to set some aside.
Want to take some time off work unpaid and travel? No problems. You haven't got a bunch of payments needing to be made. Is that not a freedom?
If you budget correctly you don't have to go into debt in the first place.
And you may not be in over your head to start with but what happens if your circumstances change?
Investment as income now rather than as savings for the future?So basically, your entire budgetary philosophy completely excludes investment income.
With near-free financing, dropping five figures cash doesn't usually make sense.