At what salary do you feel comfortable buying a $100k+ car?

like
Posting as :
works at
You are currently posting as works at
Highlighted IconHIGHLIGHTED

I love cars and view them as an experience. Some ppl choose to spend on boats, trips, season tickets to games, bottle service, whatever. We work hard, have a little fun! Life is short and moments can be fleeting.

I bought my first $80k Tesla when I was making $200k. Payments were $800 after my down pmt. I sold it two years later for $60k. I bought my current Tesla for $100k when I was making $250k. Payments are $900.

Just do what you're comfortable with. Ppl are right that it's a depreciating asset but it's not like $100k just disappears when you buy one. You can also look at leasing. BTW, the Tesla has been a phenomenal experience with autopilot, instant torque, and ZERO maintenance.

Buying an expensive car or any new car is obviously a bad financial decision but if you enjoy life more bc of it and can afford it then have some fun!

Interest rates are so low these days I'd recommend financing and investing the money instead.

likehelpful

This is a fair point. If your car is a primary driver of happiness, I see no difference in losing $10k/year as going on 10k vacations if it gives you the same pleasure

like

Basic (smart) rule: Car is no more than 10% of your yearly income. $100k car = $1m income.

*All cars depreciate, regardless of price point. So it’s not relevant to answering your original question.

likefunnysmart

The real question is do you want a $100k car? There is almost no circumstance where a 100k car is a practical choice, but not everything in your life needs to be practical. If this is really your thing and you aren’t hurting yourself too terribly elsewhere, go for it. Just make sure you’re doing it for you. Think of this like joining a country club. It will never make financial sense. It’s a passion/lifestyle play.

Recent IconRecent

This should be thought about in terms of net worth, not salary

like

$1M

like

Depends on whether you’re leasing or financing. Either way seems like quite a bit to be spending on a car unless you’re making $250k+. My dad is a C level executive and has still yet to purchase a $100k car. He obviously can afford it, but he’s chosen to invest in real estate pretty heavily. The most expensive car my parents have ever owned is a $57k Audi. Drive around a wealthy neighborhood and I think you’ll be surprised at how few luxury cars you see. Spending that much money on a depreciating asset is not wise to me unless you have some serious disposable income.

like

This is essentially throwing away money, so you can afford the car when you can afford to lose $100k + costs (track, tires, insurance) without impacting your goals.

That probably has nothing to do with salary. It's a wealth mgmt question.

like

@C3 tell that to everyone who buys an S Class or 7 Series. Those cars depreciate rapidly.

Household income 650k, 60k car. Reasonable?

like

599k is under 600k

funny

The thing is - everybody travels these days. Everybody posts epicurean pictures of amazing foods they ate at some exotic location. Even people that make no money post those pics. I’ll bet very very few of those folks know what it feels like to use launch control on a 911

likefunny

Sorry but this was so hilarious!!!!! 😂😂😂😂

I bought a $76k car when my base was $115.
Generally, the more expensive the car, the more room for depreciation. I would personally have not bought a 100k car unless I was at $140 base.
This also assumes no student loans, no student debt, and in my case, a wife with a full time job to help offset housing expenses.

likefunny

My goodness MC1...that’s low key depressing

like

I mean basic rule is 20/4/10 for a car purchase. Meaning: put 20% down, pay over 4 years (48 month finance), and spend no more than 10% of your income on car payments. So if you make $100,000, you can pay $10,000 per year on a car. That’s after 20% down and should include insurance, gas, and maintenance.

So, assuming you want a $100,000 car. You need to put $20,000 down, leaving $80,000 to finance. Assume a decent rate of 1.9% for 48 months, that’s $1,732 per month. Assume insurance of $400 per month, gas of $100 per month, and maintenance of $1,000 per year. That equals $27,784 per year, meaning you’ll have to make $277,840 per year to comfortably afford a $100,000 car (does not include taxes and registration fees).

likesmarthelpful

I’m jealous! I’m right outside of NYC so they don’t treat us too well haha

I love cheap cars because people hit and run and i don't care!

like

Never, but I’m cheap.

like

Can afford it ... don’t see the allure; a car is a utility to get from point A to point B.

Will spend if much enhanced utility (e.g. security/self driving etc )- otherwise there are better uses for that money

For now drive a 40K car which sits in the garage 95% of the time

like

Your first point and second point contradict.

likefunny

Generally I'd say not to go over about 1/3 of your income for car value. $300,000 doesn't sound unreasonable, especially outside of NYC, SF etc.

likesmart

Maybe if you lease it, which can cost 40% less than buying. I earn $500K household income and I wouldn't buy a $100K car.

like

$1M

like

500k; people often forget that $X/X0,000 cars mean $X/X0,000 repairs, maintenance and insurance.

like

There a bunch of people criticizing a purchase of an expensive car but wouldn’t blink an eye spending thousands on a purse or hundreds on shoes, clothes, etc. Just give the data, your negative demeaning opinions are annoying.

I personally want a GTR which costs around $100K. I’d feel comfortable buying it with a $200K+ income.

like

Buying a $100K car on a 60 month loan will cost you $2500 or so per month after you factor in sales tax, interest, registration fees, insurance, maintenance, etc. That's a lot of bags.

Haha. I love the responses from the people that are like: NO! Don’t spend any money on anything you may enjoy and every cent beyond basic needs (oh and only eat Raman because why spend money on meat because it’s soooooooo expensive) must go to my retirement!!
Everyone here acting like their going to live to see their retirement. 🙄

like

Yeah Booz again, choosing to eat ramen all the time is depriving yourself of necessary nutrition and probably giving yourself hypertension. It’s detrimental to your health and it’s a thing people do out of necessity when in difficult financial circumstances.

The car thing doesn’t track.

$100k on a car is stupid unless you have a solid $1M+ built in savings and assets

likefunny

Fund your savings/investments, pay off your debt and then buy what makes you happy. I spend like $2.5k per month on my horses, and approximately zero dollars on my ancient Prius.

likefunny

I mean ... you get the purest horsepower vs any car on the market haha

likefunny

Related Posts

Hi.. what package is offered at Bain & Co. For Cordinator, Global Tax position?

YOE: 3.5 years

Hi My Band is B2 however my package is less than 6/pa, how can get the salary revised as per band??

like

If you don’t have a car in NYC what car insurance did you buy to rent a car on projects ?

like

dumb question but which credit card company would be lenient when it comes to credit line (>50k)? I currently have Amex, 3 Bofa (50k,1% used)1 chase (20k, 2% used). I have 800+ score and 200k annual income

like

Thoughts on an exit from Senior Consultant to corporate development analyst. Salary is lateral. But no more ERP bullshit.

like

Any idea when will we get revised compensation for December ratings?

like

Folks, do you have any recommendations for term life insurance agents/providers? Thank you.

like

When departing for GSAP how long do we have to stay in order to receive our bonus this PY? Trying to determine my last day with an MBA program start date of 8/1… when departing for GSAP we can retain that bonus, correct?

like

What’s the salary range for NYC Tax seniors in industry?

like

For those of you leaving Deloitte cyber, where are you going? Old comp vs new comp? Old title vs new title? Curious to see the answers as it’s a mass exodus over here

like

Salary band for Senior Consultant in AU (management consulting)?

like

Hi fishes,
I interviewed with
Siemens Energy for SAP ABAP position on 21st Jan. The interview went on for about an hour and in the end, the interviewer asked my expected ctc and wanted assurance if I won't negotiate on Siemens offer with some other company as i am currently serving notice period and join Siemens if provided an offer.
Till now , the HR team has not reached out to me for salary discussions and my LWD is 7th Feb. Can i expect a call or i got rejected ?Siemens

If your workplace does not formally set guidelines or expectation for conversations about wages, then what is an appropriate time to present a case for a raise?

like

What’s the average base salary for a CSM in San Francisco? For reference, I have 2 years of direct CSM experience + 2 years of related experience in technical support

Let's do a salary thread for parental leave policies:

Post your agency’s parental leave policy.

Fishbowl will circulate the data once we've reached 50 responses, so make sure to share with your coworkers.

like

Alvarez & Marsal Can someone give me insight on what salary expectations are for a manager at Alvarez & Marsal in the SALT group. 5 YOE

like

Might get an offer from Capco Canada. Any idea the range of a salary for a Senior Consultant? Not sure to what extent Glassdoor values can be trusted.

like

I’ve received a very nice offer from a competitor consulting but my company will cover it and add more cash bonus on top. How do I politely decline an offer without closing the doors in the future?

like

People have been getting “temporary” salary reductions and then laid off with a severance based on the new salary. WTF AGENCIES!

likehelpful

More Posts

Senior analysts - how’s your WLB? What do think about returning to full travel?

Anyone here from Data Governance background, need help.
I'm working on setting up Data taxonomy and hierarchy and tagging columns to the end nodes terms. I have conceptual model to refer.
I will really appreciate if anyone share their experiences on how to get started, procedure, tips, reference material or templates that can help?

like

DM for referrals in Boeing
Job Location- Bangalore
Experience- 4-8 years
Job Positions
1 .NET Full Stack Developer
2. Java Full Stack Developer
3. Software Developer C++
4. Test Automation Engineer
5. Devops Engineer
6. Tableau Developer
7. IOS Developer

like
funny

What comp should I target compensation wise with 1 YOE with Salesforce Dev MCOL

like

What consulting companies allow remote work abroad for extended period of time!?
Thanks in advance!

like

Please suggest me some recruitment case studies to prepare for an Interview.

like

Can someone refer me to KPMG for the indirect tax litigation role? Job Id: 21000BV5
Please leave a ❤️/comment for more reach

like

What reliable sites do I use to do market research on local salaries? I want to know if I am being underpaid compared to my local market and similar positions, but don’t know where to begin.

like

During managerial discussion manger asked me "how soon can you join us"

Is this a red flag for bad work life balance?

like

Any single parents able to make big law work?

like

Which free IDE is best for Golang based application development ?

like

Hi all,
YOE- 1.5 by April
Last week I couldn't negotiate with hr ( zs) and ended up with ctc 8.5
Now I heard they are offering the freshers same...

Any idea what can be done now?
P. S offer letter is already gendered

like

Houndstooth suit? Yay or nay?

Post Photo
like

I’ve worked in manufacturing in the automotive industry for close to 20 years and I’m tired of the crazy pace of the plants. I want to pivot my career, but I don’t want to go to the same industry. Where do I start? What other industries can I go? I think I’m suffering right now from analysis paralysis.

like

After accepting offer, can I negotiate with Accenture with counter offer?

like

Proper Coronavirus safety measures aside, I loathe WFH. Now that we all have to do it, I think many are finding out it’s overrated. Just bc open offices suck doesn’t mean WFH is enjoyed by everyone.

likefunny

How are you doing? Do you have any date to return to the office?

like