How much do I have to make to afford my dream car?

[eddified]

@jenny404 Man this changes everything, I can’t believe I misinterpreted for the longest time.

 

[frankxty]

@eddified

General warranty is 4 years/50,000 miles, whichever comes first. At 6 years/70,00 powertrain warranty.

You would not have a warranty on those years. If you get a 2019 you may have one year left of the powertrain warranty but that is a stretch.

You are basically going to be paying $1500 a month plus I'd estimate 2k a year for maintenance at least.

 

[blueyedlion]

@eddified Some people are strict on the “never finance a car” mindset and that’s fine. An alternate perspective is to look at the 20/4/10 rule to ensure that payments don’t stretch you thin. If you want to be a little more conservative you can also modify this to a 20/3/8 rule.

The way I see it some people really value cars, and at the end of the day personal finance is personal. If you’re frugal in other areas and are still saving enough for retirement, I don’t see anything wrong with spending a little more on a car.

 

[rosenberginexile]

@eddified May want to just ask your insurance agent to quote a similar car. Depending on your age and the car. It could be way over 200 bucks to insure.

 

[dadofthreeboys]

@eddified You are young enough to have better dream cars as you mature.

Keep saving.

That’s a whole lot of money to spend on a car with your income for a long time.

If you want a sport car, get a certified pre-owned with enough warranty to get you through the loan period or check how much would be a 3 year loan and if you can comfortably afford that.

Sports car, be a CTS-V a corvette a Porsche or a BMW M all require more expensive maintenance, more tires (assuming you drive it like a sport car and not a Corolla) and can become a money pit in the blink of an eye.

I’d wait to have at least $250K invested before even thinking about it.

These aren’t needs, these are pure wants… and one you put your ass on 500hp, it’s very hard to go back. These are the wants that you need to pay cash for it and decide then if it’s worth it to you.

My basic rule is no more than 10% of my net worth goes in wants and I have to be able to pay it cash.

I wanted badly an M3 at about your age… I bought a Volvo and kept it 9 years. Later I got a 911 and trust me, I enjoyed the crap out of it, but it wasn’t my only car… I still had a Volvo (another one) as daily driver and my wealth was more solid.

That 911 turned to be a great investment as well because somehow the air cooled became desirable later.

 

[eddified]

@dadofthreeboys Thank you, genuine advice.

 

[lison5]

@eddified Don't buy it. The happiness will wear off in a matter of weeks. The loan will last

 

[bradleyhiggins]

@eddified Go for it man. Enjoy life. Everyone on Reddit will tell you to max out all retirement. Invest 30% of your paycheck, eat rice and beans. Have a mortgage that's 25,% of your net income. Live frugally until youre 65, and never travel.

But I say, live the life you want. It's short and unpredictable. As long as you're happy, it's all good.

Just don't stretch your finances too thin in case of emergencies.

What car is it?

 

[putttn]

@eddified Once you have 6 months in a HYSA as an emergency fund, are saving at least 25% of your gross towards retirement, and can put a big enough down payment to make sure the monthly payment is no more than 10% of your net paycheck on a 3 year loan.

Ideally you save until you can pay cash, but as a fellow car guy I know how hard it can be to wait years.