At what net worth or what income level to consider a 70k vette
 

Just curious to see what some of ya'll say. I considered both on mine. Not sure if their is a formula(like for how much of a house you can afford) for toys. Both my payment and principal as % of assets are lower than 10%. Seems like it wouldn't hurt for me especially because i know my man obama is going to change my diaper when I get old. :rock:

What about ya'll how do you budget in a badass toy like a c7.

This thread won't end well. To many factors to take into consideration. And by the time you're old enough to need your diaper changed there will be another POTUS in office for folks to blame. lol

I agree...about umpteen pages of politics, testosterone, preaching and word wars coming up..bet it's locked in 3 pages....

It's more about the monthly debt to income ratio. If your over 30% or so in revolving debt then not a good idea.

One rule I would use. When you can ask the salesperson "do you take cash", then financially, it is the right time.

Then the only question is: do you actually bring a briefcase full of cash and tell them, "start counting", or just bring a check.

When they have run your credit and you ask if they would prefer a cashier's check, and they say, "Nah, a personal check is OK."

If you are not able to maximize your retirement savings because of the c-7 purchase (or other expendetures) then it is a bad idea... Debt to Income ratio is the biggest thing... I would agree. :eek:

Below is some info copied from the 2014 Chevrolet Corvette Stingray Interactive Details Book.

CORVETTE LOYALIST
• 72% Buyers 55+
• 55% College Graduate
• 58% Urban/Suburban
• 11% Mid-Level Manager
• $133,000 Household Income
• Tend to Buy – Fulfillment of a Dream

CORVETTE CONQUEST
• 45% Buyers 55+
• 81% College Graduate
• 69% Urban/Suburban
• 58% Professionals, Business Owners, Senior Execs
• $257,000 Household Income
• Often Lease – Another Perk

If you have to ask then probably not a good idea.

^ What is the 2014 Chevrolet Corvette Stingray Interactive Details Book? Or am I missing a joke?

:confused2:

Personally i always look at these type of things on a cost to net worth basis--nothing to do with income. how much are you worth, after all liabilities are deducted. then, i set a totally arbitrary ratio, say, 10% of my net worth as a threshold for the cost of the item. in such a case, if i had 700,000 in the bank, net, i would think that 70K for the vette would be reasonable. alternatively, an excellent rule of thumb is this: if you have to ask, you cant afford it! (of course, the best rule is:what does the wifey-poo say?)

Yeah, they'd sell about 1,000 if that were the case for everyone.

If this isnt a joke, I would think the "conquests" are going to be a small percentage of sales.....

The Corvette name doesnt have the prestige that a lot of people outlined in this group would want ....

The reality is that the name brand is an important part of why these people purchase/lease vehicles...

Which is why Kia's objective of being a premium go to brand is going to fail...miserably.

:beatdeadhorse: second best emoticon (is that the word?) here is first (if this works). btw, good question.

if you want a c7 buy one, you only live once and nobody knows how long that will be. did you read the thread where the guy was on his way to the dealer to pick up his c7, he pulled over to help a motorist and was struck and killed. very sad. buy what you want today, tomorrow might not ever come. my $.02

My first Corvette carried with it a payment slightly larger than my house payment. Not a rational decision for anyone but particularly for a CPA! However, I didn't regret it 30 years ago and I still don't regret it today. 30 years of Corvettes have been a wonderful fun addition to my life. I guess what I am saying is it is not a financial analysis type of car--formulas dont work!

PS But be sure you can still make that house payment!

2 questions
 

first - if I lost my job, could I still make the payments or pay off the loan?
second, if I was in a financial bind would I be ready to sell the car to pay off the loan?
if the answer to either is NO, then don't buy it.
Ed Foy, CPA
foytoy 2012 torch red grand sport convertible

^ OK - you've convinced me. I'm buying a C7 Z51 immediately, no more waiting . . . . . . then I'm gonna move in and live in your house :D

:D $140k

LOL I believe it's a toy to have fun on weekends or car shows, and if you can't afford a toy in the range of $70 maybe get a Camaro.

If you have to ask, perhaps this is more in line with your circumstance

I think most here can easily afford it with no problem, then gripe to high heavens because $500 is far too much money for specifically colored brakes (give me a break, er brake, er calipers). You will not find a group of people as cheap as us right here and when it comes to getting your money's worth, that's not a bad thing. I'll bet when all said and done there is only a small percentage (<10) here that can't really afford this car but are determined to "find a way". Most of us have lived through enough good and bad times to understand the value of a dollar and the value that a dollar brings. We also get big bang for our buck... regardless of how much money we have. It's the American way!

I think my general rule of thumb is if you wouldn't be forced to sell the car (or if you wouldn't even really feel pressure to sell the car) after losing your job or main source of income for 6-7 months, then you can afford it.

There's probably some factors I'm failing to consider there. There's no perfect way to draw the line. But I think that's a pretty good rule.

If you can afford to be on the internet all day you can afford a new C7 lol

All payments to income not to exceed 45% (including house), 6 month of expenses in the bank, active 401K, and safe driving record. Have a nice down payment in order not to end up backward in the car, buy from a reputable dealership that does not rip you off (MacMulkin). Newer Corvettes are not assets, they still depreciate. But they depreciate at a slower rate than most cars. So if you take care of it, keep the miles within reason, you will not loose as much money on this cars as you would with utensil grade cars.

:iagree:

I am of the opinion that threads like these are generally started by people who desperately want a Corvette and know in their hearts they can't afford it, but are looking for some sort of approval or voice saying "Yeah, you only live once...Do it!"

What ever happened to the old practice of sitting down with a yellow legal pad, adding up your current monthly bills...including provision for retiring someday...subtracting that from your net monthly income and making a determination, keeping in mind things like roof leaks, frozen exploding water pipes, braces, etc. On top of that, most experts would tell you that you should have at least 3-4 months of monthly income in a liquid account, readily accessible in a "rainy day" fund for illness, temporary disability, etc.

Seriously...grow up!

^ Is a white or pale green legal pad OK to use . . . . . . :thumbs: :lol::thumbs:

Or a very frugal wife...lol

You simply cannot reconciliate buying a two seat 70 k sports car as a financially responsible decision. It is an emotional decision and therefore requires intangible justifications like " you only live once...get your vette while you can!!!"

:iagree:

I am trying to convince myself and my wife to take the jump into a C7 so I did some calculations.......

We own things for a while(10 years) so I looked at the value of a 2004. It is worth about 50% of what it cost new.

So applying that to the C7.....If we bought one that ran $62000, it would cost us $31000 in depreciation just to have it. That is not considering taxes and insurance. Averaging that out over 10 years and it comes to $8.50 per day just to have it.

That hit me in the face like a sledgehammer when I saw that number. Wow. I have to be sitting really pretty to do that......house paid for, no revolving debt, lots of $$ in the retirement, and lots of $$ in cash. Figuring I've got the first three accomplished but not the 4th.....I'll be buying used in 5-8 years.

$8.50 per day for 10 years....I'm out without lots of cash on hand.

take your income
divide by the number of kids you have living at home, or in college.
if the final number changes from the original number, step down the showroom and look at the Equinox.

:rofl:

^ Plus $3.50 a gallon fuel & maintenance . . . . . . together with your Taxes & Insurance.

I don't think that method applies to many. For example a newly practicing medical doctor who earns in the hundreds of thousands a year but just finished residency so it'll still take a few years to save $700k but he can easily afford it.

Also what about the buyer of a Chevy Spark, I'm sure there are lots of people with less than $130k net worth who can afford to buy a $13k car.

This method would also mean for someone who just graduates from school he must take the bus until he can save $20k or so and buy a $2k beater lol.

No joke....but interesting target demographics. One thing for sure is they aren't targeting my income.:rofl:

My dealer emailed me a copy of the book. He said he emails it to all his customers to review the options before ordering. It's obviously geared toward the sales associate and not the customer. It's about a 1 meg pdf file. I'll be glad to email it to someone who'd like to post it somewhere on the forum???? It also contains links to videos about the car.

So anyone who is guaranteed 6 or 7 months of severence pay upon termination can afford it :D

:willy:just think of the smokers lol 10 bucks a pack!:willy:

That's a bargain......Less than a pack of cigarettes everyday. I always get $h!t from some of of my coworkers that it must me nice to have money when they see my Vette (as they are sucking on a cigarette) :crazy:

Yeah, I didn't want to make it too scary, but.....

If you figure driving it 5000 miles....

200 gallons of gas at $3.50 per gallon $700 gas per year or about $2 per day.

Insurance..just quoted it, $419 per year for another $1.14 per day.

Taxes of about $4500 for a year, so another $12.33 per day.

I won't even throw in oil changes and tires and we are now at $24 per day of ownership.

Granted the taxes will go down from there, but still......wow.

Don't get me wrong. I don't think all of you are making a bad choice, I just wish I was in better $$ shape to join you all. And I've got stuff paid off.

I will just continue to look over the forums learning and learning until a used one is within my reality.

If you can go in your mattress and pull out about 74K to pay for the car and not miss it you are good to go.

^
They don't know that you provide Fresh Red Lake Walleye to your dealer, in lieu of a car payment, every other month :lol:

The C7 is a beauty and what you feel comfortable spending is up to you. It definitely isn't a "The Single Best Investment" but if you can pay your Vette's monthly payment from divs than you are in a decent place IMHO. Best of luck.

:rofl:

drivestwin is starting to depress me with all his figures. I'm thinking maybe I should sell mine....:lol:

hold on buddy. I can afford 10 years of not working so I believe I can afford this car. I just have always been tight because I was raised that way. My kids are gone and married and I deciding to reward me and my wife with some nice rides.(she is getting my srt8 challenger when my vette is delivered) . But then again I am only 49 and with the way the dollar is going to the toilet I was wondering for retirement reason if it is a good idea or not t o throw 77k at a car that only carries two people.

If you can move two kilos, or 3 if you were fronted the kilos, in a 24 hour period in Alaska without getting caught you can afford a C7

I'm Rex, founder of the Rex Kwan Do self-defense system! After one week with me in my dojo, you'll be prepared to defend yourself with the STRENGTH of a grizzly, the reflexes of a PUMA, and the wisdom of a man.

A friend of mine ordered a fully optioned C7 for $82k in Canada (including taxes) and his annual base salary is $67k lol. He owns a condo which he rents out, and lives with his parents for free.

^ Don't do it !!!! You'll be depressed, turn to excessive drinking, take up smoking and you'll end up spending twice as much per day as do on your Corvette.

:thumbs::lol::thumbs:

:iagree:

^ I took that Rex Kwan Do class twice - could never get the hang of it. I ended up with the ODOR of a Grizzly, the FINGERNAILS of a Puma and the WISDOM of the KARDASHIAN SISTERS.

:ack::crazy::ack:

So you're a stinky, unkempt, rich whore.....you to can afford a C7. Lol

My Income divided by zero (does not compute, but as denominator approaches 0, result approaches infinity). So, the final number is different from the original number so maybe I should buy several C7s.

HEY - it's not nice to call me Rich !!!!!!! :nono:

The problem here is younger buyers have a much different net than older or at least they should.

I think income is a good rule, as others have said it has more to do with your individual situation than anything. If you have a big family your situation is much different than if your single living in a Condo or something.

I didn't mean to offend. It's just that these decisions are highly personal and each case is different. There are so many variables, it's impossible to give any meaningful advice in a forum like this.

Moreover, if you're seeking sound financial counseling on a Corvette forum, you're already screwed.

That IMO is ridiculously irresponsible, I blame the parents more than your friend.

I think we all know this depends on responsibilities and priorities…. this is also the reason the mean age of a Vette owner is North of 50…. It's a very expensive toy.

Well said it drives me nuts, almost every time I go in a Gas station someone in line is buying $30 worth of Scratch Off tickets and a pack of Cigarettes, they almost always drive off in a beater and are dressed like a bum. Use that money to clean yourself up for crying out loud.

Ok lol. I guess I just thought it would be interesting or what motivates people(me) to drop a bunch of money on a depreciable asset. I finally just said like Buger did to Tom Cruise in "Risky Business"..."sometimes you just got to say what the f..." and go for it.

I really don't thing a dirty diaper could be that bad anyway right?

It's incredible fun and satisfying to drive cars like this. People who buy them "should" be able to do so without sacrificing any degree of financial security... if they can, then it is all about the emotion and fun. Some choose to do it even if it is a financial sacrifice based on the "you only live once" principle. Either way, there is zero logic and 100% emotion IMO.

I have made many financially poor and emotionally rich car decisions in my life. The C7 isn't one of them but I would probably choose to buy one even if it was :D

I think you might be a little bit optimistic.

LOL I understand. Hell one time I bought a Yellow Plymouth Prowler with nitrous and had more fun in that car than any other car I ever had including a 911 turbo and it was only $48k. Matter of fact I had sooo much fun in that car my wife was elated when I sold it. :ack:

This is a very personal question ...


I would not spend more than 5% of monthly take home . In my situation that required me to sell my summer car and spend $550 a month on the c7 for the next 6 years. :lurk:

You know how I know I can afford it?.....I dont have to do any formulas to figure it out. I just know.

I totally agree with your comment. Buying a new C7 is not an issue with me,however, if it were a Gulfstream Jet, I would have to formulate the purchase.

My C6 wasn't quite $70k but I saved up enough to pay cash and still have enough left over for an unforeseen emergency (like 6 mos. unemployment). Ask me how long it took? Hint: I wanted a vette since 1975.

Very smart on your part, there is no worse feeling than being overboard in debt,

I know some people dont want to hear it, but if you cant buy it outright with plenty of cushion to back you up if needed, than you shouldnt be buying a toy.
It will come down to personalities. Some people will buy one no matter what. Some will be more responsible. :flag:

Great question. If you are asking, that means your conscience is trying to tell you something...

You should buy one when the purchase does not make even the smallest dent in your overall net worth.

You only live once, but you're older...longer. Don't sacrifice your future for any material possession.

I'm 42 y/o. putting down just $35k in cash. Financing another 35k.
My payment is about $600 a month.
No kids, wife & dog, 3 more years to pay on the house, and it is my wife's surprise 40th b-day gift. :woohoo:

So I pulled the trigger:cheers::cheers:

Everyone I know that has/had Corvette's all fall into the conquests category and can pretty much afford any other car and some actually have multiple cars. So you're wrong in your assessment of the Corvette name not having enough prestige for these people.

Everything is relative, debt to income, age to retirement, equity in car when purchased, if financed, payment of course relative to income. Once you pass $400 per month, you need to think if the car is worth it. I like to think I do not owe anymore than 50% of MSRP when I buy it. You automatically lose 20% pretty quick, so if you really do need to get rid of it due to a bad situation you can. Each situation is different. Since we are dealing with a depreciating asset, it may make sense to lease and just pay for the depreciation you use if the residual and money rate make the deal attractive. If you go this route make sure you can live with the mileage constraints and penalties for overages. Consider the residual value in case you want to purchase the car at the end of the lease. The higher the residual value, the lower the payment while you have it. Good luck with your decision.

Its all about what age you plan on dying at.:D

A few years ago, a long time friend of mine, passed away. This man I met through flying RC Airplanes. He was a very wealthy real estate developer that owned 13 Ferrari's all at once. As he got older and faced some health issues, he sold 9 of them and gave each of his children one his most prized possessions. At the model field one day, I asked him what one he driving now, he answered me, " I bought a beater, a new Corvette. This man could own any material possession on this earth and he chose a Corvette as his last new car. This says something special about a Corvette.

powerful story. thanks for sharing it. :cheers:

Great story! I'm sure he was just joking though calling the Corvette a 'beater".

im 35, have had all these cars, bought brand new

2003 evo8
2009 vette coupe
2011 z06
2013 shelby gt500

i have excelent credit and make XXX,XXX.00 a year.

Budget your money, plan, and like many have said, its the debt/income ratio that matters....

If anyone on this forum says they pic the c7 over a ferrari shoudl be shot

So if the average Corvette is $65,000, does that mean you need to clear $1.3 million per month, which means a gross of about $2 million per month? If true, I'd venture to say not more than 10-15 members here could afford one.

I'd like to think I could easily afford one, but my monthly income is only about 1/30 of what you say I need:(

Have heard it said that 26 weeks of income gives a ballpark figure (even though a lot of people don't follow that). That seems pretty close to the income level GM was targeting when it released the '06 Z06: median household income of $135k for a $65k car before options.

Originally Posted by CSEVEN View Post
This is a very personal question ...
I would not spend more than 5% of monthly take home.



^ 5% of his monthly take home pay to cover his monthly payment - not a new paid in full purchase every month . . . . . . .

i think he meant the payment.

I'm not trying to be an asshat, but I don't quite understand that logic... Why is it sad? The guy's dead, why would he care either way? To an atheist, it doesn't matter because there's no life after death so he doesn't "feel sad". Religious people usually believe they're going back to their maker. Wouldn't that be way better than any Corvette ever?...

Just sayin'...

Geoff

Take your pay after taxes, (do not include overtime) deduct your rent/house note, utilities, other notes or payments. What is left remembering you need money for food, gas, clothing etc. Then make your decision of can I really afford this. I.e debt to income ratio.

Or do like I did, call your banker and ask their advice. In the case of mine, she said it's a lifestyle choice. I took that as a yea, buy it!

so what is an acceptable debt to income ratio? for a $1200 pymnt?

also what about savings shouldn't that come into it? what if someone played the lawsuit lottery and is worth a couple of million or inherited money or won the other lottery(beside the lawsuit one) or had some very good investments besides income?

Here is how I figure it out. Can I afford it?

First, I must be maxing out my 401K, with catch up that is 22500 a year.
Second, I am paying 1000 extra every month on my Home.
Third I could pay cash for the car, but chose not to due to low rates.
4th, I only have one car note, less than 600 a month on a two year old Range Rover, which I owe less than 25000 on.
5th My diesel truck is paid for.
6th my biggest interest, Harley are as follows My wife,s two Harleys a 09 and a 13 are paid for. My 2003 and my 2013 Harleys are paid for, and my 12 I owe less than 50%.
7th my children are grown and out of the house.

Last but not least, I could go 6 months with out working, and pay all my bills with out selling anything. I also would not have to touch my 401K, my annuities or my IRA.

It depends on income ( all income) and debt all debt. Best bet would be to sit down with a banker If you had a windfall most likely would not be worrying about payments. Yes everyone should be saving a percentage of their income and investing in a 401.

got ya. I always hear this debt to income ratio but I never see an example of one. oh btw I didn't win the lawsuit lottery or the other one. i just sold my business back in 97 and did pretty decent. still have a business but it ain't as good as my first income wise,.

When someone finally dies in your family, especially due to something unexpected such as an accident or fatal medical condition, you will understand the sadness that goes with that.

Michael

Go some where else with this . Money money money and then some more .

We're not talking about a Ferrari here. It is perfectly reasonable to try to budget for a Corvette.

A briefcase can hold a million dollars using hundies so you won't need that much.

:rock:

Oh don't get me wrong, losing a loved one is always a very sad thing, but the implication (that I got from the post anyway) that one would regret not purchasing a Corvette today because s/he might die tomorrow is silly, because that person either doesn't think anymore (he's dead) or doesn't care (he's in a much better place anyway).

All the best,

Geoff

You only live once so base your life and financial future on irrational desire, not logic? Isn't this part of what got America upside-down in the real estate market, buying over what you can afford and refinancing your house to blow equity for toys etc.?

I would suggest the opposite; live below your means, invest, save, allow your money to work for you, travel, experience new things, retire early.

It is all a matter of opinion and thank goodness people can make their own choices which I am all for if we do not have to financially support others poor choices.

For me, retired at age 55, travel, went surfing in 85 degree water today which is far more important to me then driving a Corvette. To me regardless of what car it is, it is transportation at the end of the day. Sometimes I wonder if some people take better care of their car than their own body/health?

Great comment and it was very sad to read of that tragedy. Your monetary priorities often dictate when a Corvette is purchased.

:iagree:

Traditionally 26 weeks of income should equal the price of the car you purchase.

Leasing is a whole other game

Of course other debt has a deciding factor as does other factors in life that only you can determine when the time is right....

Basically 140 grand income for the average consumer to make any 70 grand car purchase would be a rule of thumb to follow as a guideline.

Finding each individuals balance in life is important and different for each of us. (Surfing story sounded good)

Still common sense says 140 grand a year income for a new 70 grand car.

:iagree:

we agree?:rofl: