At what salary do you feel comfortable buying a $100k+ car?

like
Posting as :
works at
You are currently posting as works at
Highlighted IconHIGHLIGHTED

I love cars and view them as an experience. Some ppl choose to spend on boats, trips, season tickets to games, bottle service, whatever. We work hard, have a little fun! Life is short and moments can be fleeting.

I bought my first $80k Tesla when I was making $200k. Payments were $800 after my down pmt. I sold it two years later for $60k. I bought my current Tesla for $100k when I was making $250k. Payments are $900.

Just do what you're comfortable with. Ppl are right that it's a depreciating asset but it's not like $100k just disappears when you buy one. You can also look at leasing. BTW, the Tesla has been a phenomenal experience with autopilot, instant torque, and ZERO maintenance.

Buying an expensive car or any new car is obviously a bad financial decision but if you enjoy life more bc of it and can afford it then have some fun!

Interest rates are so low these days I'd recommend financing and investing the money instead.

likehelpful

This is a fair point. If your car is a primary driver of happiness, I see no difference in losing $10k/year as going on 10k vacations if it gives you the same pleasure

like

I mean basic rule is 20/4/10 for a car purchase. Meaning: put 20% down, pay over 4 years (48 month finance), and spend no more than 10% of your income on car payments. So if you make $100,000, you can pay $10,000 per year on a car. That’s after 20% down and should include insurance, gas, and maintenance.

So, assuming you want a $100,000 car. You need to put $20,000 down, leaving $80,000 to finance. Assume a decent rate of 1.9% for 48 months, that’s $1,732 per month. Assume insurance of $400 per month, gas of $100 per month, and maintenance of $1,000 per year. That equals $27,784 per year, meaning you’ll have to make $277,840 per year to comfortably afford a $100,000 car (does not include taxes and registration fees).

likesmarthelpful

I’m jealous! I’m right outside of NYC so they don’t treat us too well haha

Recent IconRecent

This should be thought about in terms of net worth, not salary

like

Basic (smart) rule: Car is no more than 10% of your yearly income. $100k car = $1m income.

*All cars depreciate, regardless of price point. So it’s not relevant to answering your original question.

likefunnysmart

The real question is do you want a $100k car? There is almost no circumstance where a 100k car is a practical choice, but not everything in your life needs to be practical. If this is really your thing and you aren’t hurting yourself too terribly elsewhere, go for it. Just make sure you’re doing it for you. Think of this like joining a country club. It will never make financial sense. It’s a passion/lifestyle play.

$1M

like

Depends on whether you’re leasing or financing. Either way seems like quite a bit to be spending on a car unless you’re making $250k+. My dad is a C level executive and has still yet to purchase a $100k car. He obviously can afford it, but he’s chosen to invest in real estate pretty heavily. The most expensive car my parents have ever owned is a $57k Audi. Drive around a wealthy neighborhood and I think you’ll be surprised at how few luxury cars you see. Spending that much money on a depreciating asset is not wise to me unless you have some serious disposable income.

like

This is essentially throwing away money, so you can afford the car when you can afford to lose $100k + costs (track, tires, insurance) without impacting your goals.

That probably has nothing to do with salary. It's a wealth mgmt question.

like

@C3 tell that to everyone who buys an S Class or 7 Series. Those cars depreciate rapidly.

Household income 650k, 60k car. Reasonable?

like

599k is under 600k

funny

The thing is - everybody travels these days. Everybody posts epicurean pictures of amazing foods they ate at some exotic location. Even people that make no money post those pics. I’ll bet very very few of those folks know what it feels like to use launch control on a 911

likefunny

Sorry but this was so hilarious!!!!! 😂😂😂😂

I bought a $76k car when my base was $115.
Generally, the more expensive the car, the more room for depreciation. I would personally have not bought a 100k car unless I was at $140 base.
This also assumes no student loans, no student debt, and in my case, a wife with a full time job to help offset housing expenses.

likefunny

My goodness MC1...that’s low key depressing

like

I love cheap cars because people hit and run and i don't care!

like

Never, but I’m cheap.

like

Can afford it ... don’t see the allure; a car is a utility to get from point A to point B.

Will spend if much enhanced utility (e.g. security/self driving etc )- otherwise there are better uses for that money

For now drive a 40K car which sits in the garage 95% of the time

like

Your first point and second point contradict.

likefunny

Generally I'd say not to go over about 1/3 of your income for car value. $300,000 doesn't sound unreasonable, especially outside of NYC, SF etc.

likesmart

Maybe if you lease it, which can cost 40% less than buying. I earn $500K household income and I wouldn't buy a $100K car.

like

$1M

like

500k; people often forget that $X/X0,000 cars mean $X/X0,000 repairs, maintenance and insurance.

like

There a bunch of people criticizing a purchase of an expensive car but wouldn’t blink an eye spending thousands on a purse or hundreds on shoes, clothes, etc. Just give the data, your negative demeaning opinions are annoying.

I personally want a GTR which costs around $100K. I’d feel comfortable buying it with a $200K+ income.

like

Buying a $100K car on a 60 month loan will cost you $2500 or so per month after you factor in sales tax, interest, registration fees, insurance, maintenance, etc. That's a lot of bags.

Haha. I love the responses from the people that are like: NO! Don’t spend any money on anything you may enjoy and every cent beyond basic needs (oh and only eat Raman because why spend money on meat because it’s soooooooo expensive) must go to my retirement!!
Everyone here acting like their going to live to see their retirement. 🙄

like

Yeah Booz again, choosing to eat ramen all the time is depriving yourself of necessary nutrition and probably giving yourself hypertension. It’s detrimental to your health and it’s a thing people do out of necessity when in difficult financial circumstances.

The car thing doesn’t track.

$100k on a car is stupid unless you have a solid $1M+ built in savings and assets

likefunny

Fund your savings/investments, pay off your debt and then buy what makes you happy. I spend like $2.5k per month on my horses, and approximately zero dollars on my ancient Prius.

likefunny

I mean ... you get the purest horsepower vs any car on the market haha

likefunny

Related Posts

🔥How much Annual hike(%) & bonus (%) bny Mellon technology employee getting every year? BNY Mellon BNY Mellon Corporation BNY Mellon | Pershing

like

I am currently serving notice period in cognizant. I applied resignation on 21st November. Today my salary didn't get credited. May I know the reason for it.

like

I haven't received my salary this month its showing that my salary withheld? As my last working date is dec 23

like
like

Got an offer from Accenture but they have mentioned only fixed pay and not the salary breakup which is very strange because I have not had any such experience with any other company. On asking the HR, she said there are no deductions from this fixed pay apart from PF and the salary breakup would be given to you on the day of joining. Is this strange or common?

like

How much salary we can expect at Cognizant for Manager-projects role for 11 years of experience?

like

What should be the best way to earn 30-40 lpa salary?
What skills or techs one should be good at to reach this figure? As I see a lot of folks with this figure.

like

Hey guys are deferred compensation plans worth it? Feels like no but curious of your thoughts!

What’s base salary in line with street for first-year analysts (Markets) for PARIS updated after the 2021 raise? I know the standard for London increased from £50k to £75k and was wondering if it is on the same scale

Anybody knows ITA M3 salary for Houston and Austin?

like
like

Base Salary: 80k; Signing Bonus: 5k; Bar Pass Bonus: 5k. Start Date: October. What timeline should I expect for bonuses in an Asset Management Firm

like

Does anyone have experience with Lewis Brisbois? Any intel on work life balance? Culture? Salary range? Thanks!

like

Deciding between a few offers that I have received/am expecting in the coming days/weeks and would love advice!

Current Salary: $80k TC

-Sr Business Analyst at major company in financial industries: $100k TC
-Sr Consultant at Big 4: $110k TC
-Sr Consultant at Boutique Firm: $125k TC

I would love to work in financial industries, but I dont know if having a Big 4 name would open more doors in future, or if $25k is too much to pass up on. Any input is appreciated :)

like

How do you share your offer letter for counter offers to new company when they ask for it?

Do you share the full offer letter? Or do you hide company name & other content? Or you just send them the salary breakup?

like
like

Fancy fitness corporation. Thoughts on salary as a writer?

like

What's the compensation range for Associate Product Manager position at Goldman Sachs with 3YOE in NYC? Base + Bonus would be appreciated. Do they offer sign on bonuses?

like

What is the salary range for senior tax consultant at Deloitte. I have got an offer , so wanted to know. Pls help me.

like

What will you do with the “investment” part your bonus this year? Where will you put it and over what timeline? Normally I DCA over 2 months, but fear that I’m buying on top of a cliff this year

like

More Posts

What is a current engineering field that might become outdated in the near future?

like

I went through the final round recently with Mck and was told I needed to go through an additional interview. Basically everything went well but I need to do better on structuring. Reaching out to this community to see if you guys have any tips/ resources to share or if someone had similar struggles and how they overcame it. Really want to succeed. TIA!

like

I gave my notice today and I feel like a thousand-pound boulder has been lifted off of my chest.

like

Lots of hiring wars going on now as the vaccine is distributed and new projects are getting closed without the resources to fill them. Make sure to take this opportunity to market correct your COVID suppressed salaries. You deserve it.

likefunny

Texas Center, April 2021 filers for EB2, anyone heard back? Aside from finger printing in July 2021, been cricket for me

like

Will Coforge pay the variable as quoted ? If yes what’s the frequency of pay Like half yearly or annual?

Until we move away from the billable hours model, there will not be true work life balance when free time is preferred. As you gain experience and knowledge within our field we are too knowledgeable to be equating our value to time spent discussing or doing. There is an inherent conflict from leaders that want to maximize revenue which means maximize billable hours and staff that minimize hours.

like

Looking for healthcare consulting role. I have about 5yrs experience in healthcare delivery management, MS, and MBA. Can anyone please connect me to a recruiter

like

Hey guys, I have an offer from Aster DM Healthcare, Concentrix, Happay(CRED). YOE : 4 YEARS TECH STACK : ANDROID AND REACT NATIVE All are providing almost the same package. 22-24lpa Which one should I consider? I have 4 days left to choose.

like

Just took a leadership role at my firm. How should I prep? Any books or podcast one would recommend?

like

Hi Team,

I'm a Salesforce Admin with a little development experience. I'm looking for a switch due to financial constraints. Could you please help with referrals?

Thanks in Advance!

like

Hello! I’m currently a Administrative assistant now working at a major medical system in Baltimore. I’ve previously worked for 10 years as a medical assistant in a variety of specialties and primary care. Lately, I’ve been feeling a bit stuck as to my next step. Part of me want to go into management, another part is saying go get your RN, and the other is saying go into Social Work. I’m all over the place. Any ideas? And how would I be able to cross over to management?

like

Best agencies in Australia / New Zealand? How’s the level over there these days?

like

Any suggestions on how to have your personal time of prayer /meditation when you work from home? I'm struggling.. I have 2 toddlers. I'm either in meetings or occupied with them.
Suggestions?

like

What is the average amount of time after on-site before you hear if you pass HC? What about from passing HC to final offer?

Thoughts about buying amazon?

funny

Any tip on places to see or restaurants in Helsinki other than the typically found in top 10 lists on the internet??

Could I get a Microsoft Referral please?

like

Any good book recommendations?

I’m into self help or motivational books right now. Also steering away from anything political 🫣 just want a good read for by the lake.

like

I am a current higher education professional with 5+ years of experience working with college aged students (recruiting, program management, event planning etc.) I am seeking to transition into university recruiting or corporate recruiting. Has any one else had a similar experience? Any advice would be great!

like

Additional Posts in Compensation

Does anyone know the current TC and the breakdown for a US based TCS partner?

like

I see lot of people here transfer from big 4 to faanng. Do you guys mind sharing what specific service line you were in at big 4 and what position you got at faanng?

like