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Just no. Net worth of $3M+.
If you're already on track for coast FIRE/ regular FIRE and set to support your family, it doesn't matter if you have the savings. There should be no issue buying this.
People will argue with this answer, but it will be out of their own personal belief on how they feel about vehicle spending.
Life is short. Enjoy your money. Also, give back to others.
Mentor
Yep. Casually bought a Tesla Model Y (will trade in my 3) the other month. Not really worried about saving for retirement anymore - it’s nice to have saved early to not save as much now
Some people say your car should be no more than 50% of your take-home pay (if no other debts). I personally feel like you can always buy used since they depreciate quite fast. My gf and I have a HHI of $150k and we bought a used Civic for $14k
Totally agree with the buy-used logic but don’t think it’s worth it in the current car market
$20M+ don’t be a moron
You can avoid doing that even if they are "stupid" purchases.
Depending on the type of vehicle (i.e. Tesla) it may not even lose a lot of value.
Whatever income you want.
You buy that 75k vehicle. I’ll buy the one with rust spots and 15k miles that 10 years old that grandma doesn’t drive anymore for 10k and put the other 60k into investments.
There’s a lot of nay sayers but I’m a big car fanatic so support your decision to enjoy life if you can afford it. I bought a $57k car while I was on $160k and this year bought a $95k car on $275k base. As long as you don’t have lots of other debt/expenses, and no kids or other more important things to spend money on, go for it! I justify the cars by being frugal in other areas. Just tell us what car you’re looking at :)
I’m a car nut, too, and would love to know what you got!
Never
Mentor
$2.5M here, just bought a Tesla model 3. Felt like a stretch to me but I love it - can’t imagine paying more and getting similar value
This is a ridiculous comment lol
Lol you can post this on a FIRE chat and expect much other than lots of nevers
Depends on your other debt/expenses.
I’m personally very anti-luxury car — but you have to decide what your priorities are and where you want to splurge (I splurge elsewhere). If you amortize the cost of this purchase over the life of the car, how much are you saving per month - and does that savings rate meet your FIRE goals?
https://joinfishbowl.com/comment_r4qysctfgc this should help
Mentor
Never
People don’t really understand car expenses.
The cost of a 75k car is not 75k. It would only be 75k if you totaled it without insurance immediately after driving it off the lot.
The true cost of the car is its depreciation plus out of pocket maintenance expenses. Depending on the car, those annual costs could be higher for a 20k used car than a 75k new car.
Also agree on leasing. Won’t burn your pocket in one go and the outflow over the duration of the contract is unlikely to exceed depreciation (for that grade of car assuming it’s new)
Acknowledge the “hilarious” emoji, Shaun Stanford. Care to explain?
Wrong question. The right question would be what kind of car can you buy with the salary you’re making.
Never!
None
1.2m per year here I leased a c63 Amg in my business name. Buy whatever you want you can’t lose now if you purchase the right car. Just preorder it brand new keep it for a year and sell for a profit . Porsche GT3 anyone?
At 75K the only new car you should buy is maybe a Honda Civic lol. New vs Used is not as easy now bc used car prices are so high it may not make sense to go used. Weigh your options and make a list of what you “need” and what would be “nice to have” and go from there.
Assuming you have no high-interest debt, I suggest leaning on the frugal side of no more than 10% of your income for two reasons:
1. Cars are consumable and rapidly lose value.
2. The opportunity cost is high, especially if car purchases are made regularly.
Suppose you purchase a $20K used car instead of a $75K car. That $55K, if invested in broad-market index funds at 8% interest, will be worth more than 10x — 550K — in 30 years.
If you're frugal in other parts of your life and plan to keep the car for a long time, then you can cheat a bit on the percentage of income. If you have high-interest debt, then get the cheapest car you can muster.
The 75k car can be purchased with 1% interest and the money can be invested.