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It depends on your goals. When I graduated college, I paid 22k when I was making 65k. My priorities have changed and my recent car is 19k while I’m making 175k, since I would rather invest the remaining money nowadays
@mb I have my investments in QQQ, VOO, and VTI index funds (long term). If I’m buying a year away, I’d just keep it in savings.
What kind of a car are you considering? A new Merc?
OP: I believe in a different post you were considering paying it outright in cash. Here’s a video that might shed some light on deciding otherwise.
https://youtu.be/lykzVL7eNoM
Honestly I would either lease the Mercedes to avoid the troublesome and costly maintenance and repairs around the 5 year mark. Either that or buy a low mileage Mercedes that has already taken the depreciation hit. If you want a long term car, I’m not convinced that a German car known more for performance than reliability is the move here. If ownership is important, I would rather look at Japanese/Korean cars known more for reliability than performance.