what would be the min salary you have to make in order to comfortably own the next Z
09-08-2008, 10:51 AM
#61
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Originally Posted by dhays
You are missing part of the picture here. Polo is partially correct. If you have $30k to spend on a car, and if you can get financing that is at, or equal to, the rate of return you can get on your money, then by all means finance the car.
The part that many seem to miss is the If you have $30k to spend on a car part. If you don't have the money, you still have no business borrowing money for a car.
He also, quite rightly, mentioned that if you can borrow the money at way below inflation that it increases your flexibility. That is true only if you have that $30,000 sitting in an investment account somewhere. If you don't have the cash available, then debt only reduces your flexibility.
There are too many bad things that can happen to folks financially, particularly if they are young and not well established. The less debt you have the better off you will be in the long run.
The part that many seem to miss is the If you have $30k to spend on a car part. If you don't have the money, you still have no business borrowing money for a car.
He also, quite rightly, mentioned that if you can borrow the money at way below inflation that it increases your flexibility. That is true only if you have that $30,000 sitting in an investment account somewhere. If you don't have the cash available, then debt only reduces your flexibility.
There are too many bad things that can happen to folks financially, particularly if they are young and not well established. The less debt you have the better off you will be in the long run.
There are certain cases where this general rule can be violated. One example is when you're betting on (loaning due to) your education. For example, if you're going for an advanced degree (masters, doctorate etc), then that is a good bet. You should take out a loan if it is needed because as long as you have good study habits and a good work ethic you will make good on this loan/bet.
For me getting through pharmacy is my #1 concern because it is a gateway to an easier life at a younger age versus a liberal arts degree at Rutgers University. Being in the Guard and having to pay nearly nothing for this doctorate degree with very well documented incomes after graduation is simply the best return on investment in the short-term for me. It is simply not an option NOT to do as well as I possibly can.
With that being said, I know the "smarter" route would be to get a cheap small vehicle and get through school but one thing that I found most valuable to my life was my military training. Before, I was completely undisciplined and kept getting Cs and was put on probation and after I came back from basic training and attended part of Officer Candidate School, I'm currently average 3.5-4.0 every semester. It has helped my work ethics and focus immensely.
Because of this change in personality and priorities in my life, I feel I would have no problem affording a slightly more expensive car and I wouldn't want to burden my parents with this either. Therefore, if you are financing but don't currently have the money, you better be sure you will have to money in the near future. For me, if I decide to finance, I know that my active duty training and drill pay would certainly cover the vehicle, my income after graduation would most assuredly cover the vehicle, and if all else fails (unlikely) my parents have enough cash to help me out. Presently I have enough cash to cover half the OTD price of a base 08 G35 6MT(downpayment).
But yes, having less debt is better and having cash in hand to buy a car and then electing to take a ridiculous APR incentive gives you a peace of mind.
09-08-2008, 12:25 PM
#62
Hey polo, find a dealer thats military friendly. There are a bunch that would hook you up with a really good price on a vehicle. I think grubbs infiniti gives a military discount. I was looking into them when I was in iraq, but the base price on a g35 base with military discount was still a lot more than just getting a Z, lol. Good luck being an officer, listen to your nco's, they know what they are talking about, for the most part, don't be a stuck up commander. Don't try to push your rank on the lower enlisted, that will never work, they are the ones who really have power, lol.
09-08-2008, 03:53 PM
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Originally Posted by 3kgtslflip
Hey polo, find a dealer thats military friendly. There are a bunch that would hook you up with a really good price on a vehicle. I think grubbs infiniti gives a military discount. I was looking into them when I was in iraq, but the base price on a g35 base with military discount was still a lot more than just getting a Z, lol. Good luck being an officer, listen to your nco's, they know what they are talking about, for the most part, don't be a stuck up commander. Don't try to push your rank on the lower enlisted, that will never work, they are the ones who really have power, lol.
I'm from Jersey, is Grubbs anywhere close?
09-08-2008, 03:58 PM
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Originally Posted by Cannysage
my rule of thumb for buying a car always has been that you need to make at least 2x much of the car's cost.
As you increase your income, the cost should become a smaller percentage of your income. For example, if you make $75000 you should probably spend no more than half that on a car. However, if you make $150,000 you should definitely spend less than half of your income on a car (because the excess should be used to build your assets) but also spend a bit more than what you would have if you only made $75000 if you so choose do to so.
09-08-2008, 07:47 PM
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Originally Posted by 3kgtslflip
I think it is in either texas or california, lol. Where in jersey are you from? I usually hang out in Perth Amboy.
09-09-2008, 08:22 AM
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Originally Posted by sethgood
Based on bank guidelines, you need to be at about 17% payment-to-income. most financial advisors say spend 20% of your income each month on a car tops. So, if you take a typical enthusiast Z you buy for $29,750+tax, put $3000 down to cover taxes and registration, you have a $654 car payment at 6.99 APR for 60 months. If you must go longer than 60 months to fit your budget, you cannot afford the car. Then, let's say insurance costs $125/month, and you need 4 $95 fillups each month and you buy a Nissan service contract for 1895 and need to do $1500 in tires and brakes during the loan period.
The bank will require you to have 3850 in gross income to get the 60 month loan. However, you will be tapped by taxes, rent and other expenses in this scenario and go bankrupt or move back in with mom. The financial advise would be to have 654 + 380 + 125 be no more than 20% of gross. This means you would need at least $6817 in gross income to afford the 30k car and its related expenses.
The bank will require you to have 3850 in gross income to get the 60 month loan. However, you will be tapped by taxes, rent and other expenses in this scenario and go bankrupt or move back in with mom. The financial advise would be to have 654 + 380 + 125 be no more than 20% of gross. This means you would need at least $6817 in gross income to afford the 30k car and its related expenses.
03-14-2009, 05:11 PM
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when i got the car i didn't even feel the effect financially... as if nothing had changed and its paid off...
im not super rich nor am i poor.... then again i look at it as my weekend car and not my daily driver so... i dont think you can comfortably afford this car given the fact that u have to actually ask/think about it
im not super rich nor am i poor.... then again i look at it as my weekend car and not my daily driver so... i dont think you can comfortably afford this car given the fact that u have to actually ask/think about it
03-14-2009, 08:06 PM
#77
no down payment on an 2008(new)..at what, $26k to be safe. I suppose your looking at around $550/month. 1k in rent and 550 for the car...All in all you would probably want to be bringing home $3k a month to be comfortable, in my opinion that would be the minimum. I dont know NYs taxs but I suppose that would be around $47,000/year in income.
The above calculations are jsut thrown together.....not really thought out to much.
my disclaimer
The above calculations are jsut thrown together.....not really thought out to much.
my disclaimer
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