{ "media_type": "text", "post_content": "Making ~110k post tax.\nIs 50k too much to spend on a car?", "post_id": "6110145271f808001c57565b", "reply_count": 366, "vote_count": 21, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting", "feed_type": "crowd" }
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Making ~110k post tax.
Is 50k too much to spend on a car?

likefunny
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Well it all depends on your lifestyle and what you value. I currently make the same as you pretax but when I first started earning I made 60k but bought a brand new Audi A4 on lease. Paid 450 a month for 42 months plus due to my zip code and age a further 220 a month on insurance. In hindsight it was definitely a pretty stupid amount of money to spend but I loved the car every bit of it and since I continued living in my old student housing area with roommates my rent for the majority of the time was only 550 a month with free parking. ( Live in Chicago). My trade off was house for the car as I was spending on car plus house what most of my friends were spending only on rent by moving to downtown or better areas post college. Now I bought a Tesla model y. At least as of now this is one of the cars that seem to hold it's value better with time and again it's my dream. I continue to live in the same house with same rent. All this didn't prevent me from saving money and have almost paid off a $140000 investment property as well. So it's all perspective lifestyle and choices you make.

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Oops … I am in the same take home salary range and just bought a $110K car … ooops again … but On average I drive 2 hours a day back and forth to client site on top of regular drive … the convenience, comfort, and safety are priceless … if I drive a cheap car, the money I’d need to spend on chiropractors and massage would be as much as a car payment …
To help draw the rest of the picture, I am married with shared finances with my husband.… we both chose to live in a smaller house but drive nicer cars … it’s a personal preference and I realize not everything in life is going to be at the same level of my car and I am fine with that. Do what you need, like, and want.

likefunny

😳

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Thats WAY too much. Keep it below 10% of your gross pretax pay. That might mean used, and may be a more modest vehicle than you want. When you get to making $500k a year then you can buy that $50k car. Here come the "this advice is from a clown" replies though.......

likefunnysmarthelpful

Didn’t see this anywhere in the comments and honestly I’m disappointed in everyone:

Guess what, it goes to the economy

If you’re a car person then it’s worth it. Everyone that says it’s too much are more of a “it gets you from point A to point B” type of people.

Have you set retirement and savings goals and are you on track? If so, yeah go for it. You never know when your last day is - don’t live like you’re guaranteed 60+ more years but don’t neglect savings.

likeupliftingfunnysmart

Short answer, No its not. What car though? Back in the day I bought a 40k car on a 75k salary. Now my TC is ~300k. Like most said, its all about cash flow and if a car to you is more than "it gets me to point A to B".

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Nah, enjoy your life bro you make 6 figures post tax

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I heart that PwC1 (rightly) assumed this was a dude (“bro”)

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Bought this in 2009 for 50k when my HHI was 35k pretax. Still in my garage, paid off. If you are a car guy, you know when something is worth it and when it’s not. Eating ramen noodles as a 27 year old single military enlisted man wasn’t so hard with all the positive benefits this car gave and still gives me mentally and emotionally.

Post Photo
likeupliftingfunny

Bought this baby when I was an e-4, Day after thanksgiving, 2009

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My wife and my monthly take home is 17k and I bought a 85k AMG recently (had a 20k equity position in prior car) but 1k payments are only 6% of take home and I’m a CAR NUT so it’s worth it.

Life is short and unfortunately most cars will be going electric in the future which will drive down desire as I like ICE cars as the character and driving experience is 100x greater than an EV.

Still hit my 401k match and in track to pay-off student loans fully in 18 months and we save 4-6k per month for our next house.

likefunnyupliftinghelpful

Yes, it is low. Our income isn't that much but we have a house (now worth 532k thanks to appreciation will be paid off in exactly 6 years and 2 months if things continue to go well financially), paid for car and still save around the same each month ( yes with all max outs and a kid). Paid off the student loans vs buying an expensive car. Also own 3 rental properties under LLC. I started from 0, could easily buy that AMG/other reasonably fancy cars cash but I guess I am not a car guy and waiting for a particular net worth to reward myself with a nice gift.

Not against borrowing money but gotta borrow for stuff which makes sense, for some people it is a car but for some people it is something else.

some of ya on here blow my mind… SPEND YOUR MONEY. Tf you making 6 figures for if you’re not enjoying it. People on here have only figured out how to make money, not how to enjoy it... Treat yo self!

likesmartfunny

Yup. For me - it’s a balance. I like saving a lot so I can help family that aren’t as well off as I am. And so that I can retire early. But I also like indulging without worrying - like in expensive and hard to find bottles of Irish whiskey or paying a lot to have vintage furniture restored because I just don’t have the time.
The 🤡 on here who seems to never have fun - I just don’t get it.

I drive an Audi R8 lol but after paying my major bills, I still am able to save a decent amount every month.

I'm a car guy so I prolly will always have an expensive sports car. But generally my outlook on expensive purchases is that as long as you can pay your other bills and it doesn't put you in a hole financially, then go for it. Life is short. Enjoy things you like!

likesmart

I bought it from a private dealer in Carolina. And yeah you won't really see any gen2 R8s for less than 130k. Most the V10s are going for around 140. And the Plusses around 150+

Get a cayman and drive the hell out of it, 1k a month for your 9.5k a month take home, worth it if you’re a car guy

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Cla amg is still not worth it.
Go drive it feel the interior hear the noise. It’s downright terrible. I’d rather buy a Corolla. Not even exaggerating.

The cla is downright trash.

Miata is always the answer.

likehelpful

I wouldn’t

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Yes. Even worse if you don’t have a house yet because the debt will limit your ratio for a mortgage.

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I bought a 45k car making 70k pre-tax when I graduated. Regretted it after a year even though I could comfortably pay it (moved back home after graduating, no expenses except eating out and the car). Felt good to drive around my Q for a bit and then got over it.

likesmartfunny

Is it worth it is the question. Comes down to its value. What is it worth to you/why do you even want a nice car? My guess is 6 months after purchase the short term gratification will wear off and you’ll be disappointed in yourself for spending way to much on it. That says more about me than you obviously.

likesmart

As someone who overspent on his first lease after getting a job, I can attest to this, but everyone is different. I was pumped on the car for a few months (because I drove old hand me downs for a few years), and then after that, the novelty wore off and it was just a car. I still liked the car, but as soon as that lease ended, I got something more sensible.

No wonder some people don’t get out student debt for a long time ! 😂

likefunny

Why you asking then?

likesmart

Basic cars cost about 30K these days, so I would say 50K on a car you like (that is if you really want that car) is not an insane stretch.

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I’m probably on the cheaper end but I drive a $25k Mazda and my pretax income is $400k.

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The new cx5 looks like a 60k car. Vastly superior in styling to most of its competitors

Depends on the car. 4Runner TRD pro? Buy it. Even in 5 years it’ll still be worth at minimum 40k. 50k for a bmw? I wouldn’t. That same car will be worth 15k in 5 years

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Tesla?

You know it’s too much since you’re asking the question. And sounds like you’ve already made up your mind. Fwiw we have 600k hhi and just bought a 50k car - weren’t comfortable with spending more than that. But to each his/her own.

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I’m really confused by the 10% of gross or net pay figure- my gross salary is around $200k, so by that logic, I should spend $20k on a car. But the average price of a new car is $40k. So I should only buy a cheap, used car, even though I can easily afford car payments and get a low interest rate on a new one? I have a 2020 Tesla model 3 (around 50k) and am very happy with it, for what it’s worth.

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Altran 1 - will it have FSD? Autopilot features?

110k post tax that’s more than enough to afford a 50k car. If you like the car, go for it! I wouldn’t buy the car just to show off

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