I know there are so many variables in each persons life and priorities as well but the 50% of your yearly income seems a nice/logical rule of thumb.

X2

I don't have any kids so no college tuition payments for me!!!!

When Suzy Orman says you can afford it...

DENIED !!!!! Cars first , money second and people last. Now you know. Signed Suzy.

That's how I did the math too. I took an honest look at my car-buying habits, and the money I'd spent on my DD's over the years.

I bought a used '85 Trans Am (5.0 TPI) in '91 for $6,500 and sold it in '96 for $2,000. 69% loss over 5 years.

I bought a new Firebird Formula (LT1, 6-spd) in '96 for $19,500 and sold it in '03 for $6,500. 67% loss over 7 years.

I bought a new Honda S2000 in '03 for $30,600 and sold it in '13 for $13,500. 56% loss over 10 years.

I only modded the Formula mildly, but I modded the snot outta the S2K. (Turbo, then Supercharger, suspension, etc.) I knew my next purchase would be a Vette, and the mods would start all over again because it's an addiction. I knew if I bought a C6 Z06 or a C7, I'd wind up blowing another $10k on mods in the first few years. And I'd have to watch them depreciate.

So I started thinking about my total cost of ownership over a 10 year cycle, and how I'm blowing money on cars left and right. I needed a strategy that met my goals for the least money.

I went out and did some test driving last August and found that I loved how the C5 Z06 rides and drives. I bought one the next day. It was half the price of a used C6 Z06 and less than half the price of a not-yet-on-sale C7. I'm already $8k deep in mods with more planned... And right on track toward my planned total spend for this vehicle.

I love the C7. I love the C6. I love the C5. I'd love to have all of them. But Corvettes are pretty reliable these days, as is the rate of depreciation of new cars. So I'll wait and buy a used C7 in 8 years. That's not the answer for everyone, but it works for me.

:iagree: Thats my thought as well, its almost like asking someone who's on their 3 divorce for marriage advice.

This however was a very interesting post considering the thoughts and opinions from other forum members. Being 29, some of my closest friends think I have half a brain for purchasing a 65k car but they have no idea about my finances.

I had to give up a few bad habits but Im single, no kids, no debt other than this and my house, I pull a little over 6 figures, I have a monthly bonus that will cover my car payment for the next 18 months, and finally it was now or never for me before I start a family.

:cheers:

1. Do you have at least three months of income preferably (4-6mo) saved and ready for
immediate use
2. Are you fully funding your retirement each and every month
3. Are your monthly debt service payments very low?
4. If you are married with kids, do you have adequate ( not the rainy day fund in #1)
savings set aside to take care and educate them if you in the event you are not
there to take care of them in the future.

If you can answer yes to those three questions then you have your financial house in order and you have the ability to use a large part of your disposable income for whatever you want - house - Corvette - boat - vacations whatever.
If you dont have the above things handled, you need to step back -make a plan and follow it to get these important long term needs handled - they affect your family and you and your long term happiness in life.
This is why the demographics show more older buyers buy Corvettes. They have had the time to save and get their futures secure and now have the disposable income to pay cash for the car. As one of the posters said - if you can say what will cost if I pay cash then you are where you need to be.

The current fad of "hey you only live once and may die next week" works only if you die next week. If you live and have no money to retire or take care of you family in times of dire need, that quote does not work - you did not die but you end with no money and no life. A C7 is an incredible car but it is still only a car - the future of your family is far more important. Sorry if this got "preachy"

Thanks man. That's really why I started this thread was to see what peoples thoughts were about pulling the trigger on pretty expensive toy. Everybody has different income, debt, priorities and etc.

I don't know why some people get sooo uptight about it. I mean I doubt to many of us will ever meet personally so why not share a part of our lives that we normally keep private with a bunch of strangers on the internet that all love the same car. :D

:iagree: Thank you, thank you, thank you. The YOLO thing is so overrated. Life is really damn long for most of us, so it's wise to think long term.

agree we can live many years but I can't say the same thing about the U.S. currency.

Too many variables for sure,
A few that do stand the test of time that I adhere to;

1. Try to keep you mortgage at 15% of you monthly gross income.
Give you a lot more flexibility in your life. Put at least 20% down.

2. Put enough down on your cars so that through the life of the loan you are never upside down. Life happens, you never know.

3. Obviously, never keep a balance on your credit cards.

I have an asset allocation for all our fun stuff which is roughly 10% of my total net assets. I basically borrow from myself out of this fund for cars, vacations, boats, whatever. Vacations are paid back in one year and autos over 3-4 years. The difference between what I paid for the car minus estimated depreciation is the amount I repay in order to keep the asset value at my goal.

No right answer!! I don't think YOLO is overrated at all. Life goes by so fast I've felt this way since my 20's. You will be 70 before you know it!! Every retirement calculator puts my wife and I right on par by 60yrs old!! We could save at least 30K/yr more, but we spend it. Save for what? For it to sit there? How much do you really need to be happy?

When I die there will be no inheritance to give but a house to leave, that's it!! That's me ;) When I'm 70 my youngest child will be 42 the oldest 50 do they really care if I leave them a lot of $$$? I know I didn't!! I told my mom to live her life have fun especially with everything she went through with dad. Don't not spend to leave it to me........how crazy is that!!

I work with guys (well 3) who have 7 figure nest eggs and 200-300K in the bank and they drive 10yr old vehicles, don't go on trips, live in modest houses, their nest egg and their $$ in the bank is their happiness.

I don't alzheimers runs in my family, as does heart attack, as does diabetes, I go on a trip a month EVERY MONTH, go through sports cars never owning one more than 3 years, still save for retirement, but could save so so much more!! I eat super healthy, but genetics are genetics and every male over the age of 65 has Alzheimers on m Dad's side, so I'm more than just a little worried. My dad, all of his 7 brothers, my grandfather, all died and suffered from the complications of Alzheimers. All became vegetables before 75.

So, for me and my predisposition I'm not looking to live to 90 and am fully aware the ramifications if I do have to live that long.


No right answer imo everyone is different!! If you can afford the payment buy it if things get hard sell it!!

I agree on most of what you said because it's true. But I would like to leave a little more for my kids so they can buy some toys too.

i think your on the light side. after taxes your talking 100K net income. to put 70% of your yearly income into a car, to me, seems a lot. getting back to my post, i think its about your net worth, not your income.

but its complicated, since you have other long term objectives for your savings, and need a lot of money for retirement ( id say a minimum of $3 million for retirement, in order to maintain a reasonable life style). i retired early, about 6 years ago, and can tell you that when it stops coming in, it goes out pretty fast. but then again, if youre 30 years old, youve got a lot of time left to accumulate wealth. so, maybe you should just go for it. yea, thats it, JUST GO FOR IT. or, as i like to say, carpe el diem.

I think you mean 3 months of expenses?

If someone has a very large income, and is saving a substantial part of it, why would they need the savings part to be liquid?
I generally keep 2 months of living expenses in the bank (which is less than 1/2 month's income) - that is my idea of liquid. The rest is kept "working" in a pair of trading accounts that could be accessed if need be.

:iagree:
In my opinion your annual salary should not be less than the car cost...sheesh and he lives with his folks...shame on them both, him for taking advantage and not being a man and them for allowing him to stay on the tit that way...eek:ack:

And just think some people spend that on a pack or cigarettes per day?

Any smokers out there, you can trade for a C7..............

Wow guys after reading this I'm depressed but I'm going to drive my red vert off into the sunset and enjoy it while I can.:cheers:

I love threads like this that bring out the judgement police who think they know exactly how everyone should live their lives even without knowing a particular individual or their situation. :rolleyes:

If we're making generalizations, since you're in Alabama does that mean you live with your sister?

^^ I guess that means your income is less than the cost of your car. :rofl: