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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.
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
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.
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.
When I'm debt free with net worth of over $2M. By then, not sure whether I'd care for a $100K car.
The question should be at what net worth, not at what salary.
Comfortable? Uhm probably never
Never for me. Although I do like care that cost over 100k lol
Some people spend on travel, some spend on watches or cars, some don't spend much at all. If cars are your thing, go for it, assuming you make enough to comfortably cover all your other expenses and are able to still save money each month.
I don’t think this person is suggesting to layout 100k in cash are they?
What does it matter? Whether you pay it upfront or in installments, the opportunity cost is similiar.
I’d do 10% take home salary, or 5% of total net worth. No big impact with depreciation and all. $17k take home monthly on a $100k car, or $2M net worth minimum
Everyone knows how to spend your money better than you do. I’d estimate the payment to be around 1500 a month so if you can afford that plus a few grand on maintenance every year then go for it.
The point at which I can afford to replace it if it crashes
If you have to ask, you can't afford it
But truthfully, it depends
1. What are your priorities
2. Are there loans involved
3. Level of debt
4. Personal responsibilities (e.g., kids)
Honestly it's a depreciating asset so unless I had f u money. I would never spend that much
Did the poster say they’d buy in cash? That distinction matters.
For me it wasn’t about income it was about network worth and net income (salary minus outgoing)
If you are mortgage free, kid free (or kids gone), cover all the bills, rainy day find, retirement investments - then if you have $100k left, why not ?
If you’re a car person and this matters to you, go for it
It's better to lease the cars you're gonna bleed money anyway better to make it short term
There is no answer, it depends on you, your priorities and expenses. People who don’t care about cars or have other priorities would never consider a 100k car, while others might.
Lease 100%
A person who views cars as for their utility will see this as wasteful.
But a person that loves cars will see this as an investment into their emotional health.
1.5M NW. That should be a little under 1 year capital appreciation
None... max id ever do will be 70k
None? Seems frivolous.
I'd rather buy a house and rent it out..