luxury cars 60k image
wooball2
I was returning from a vacation a few weeks ago and on the way back I decided to go back through Washington DC instead of Baltimore. All over the Capitol Beltway were luxury cars. Mercedes Benz, BMW, Lexus, Infiniti, etc. I know Washington DC is an overall well-off area but my question still remains. Who is able to afford a luxury car? Who are these people? What are their professions? How much money do they make? Just curious.
Answer
Who is able to afford one and who actually has one is not the same thing.
What you're asking is who can afford one. What you're observing on the road is who has one. There are plenty of people with no emergency fund, little saved for retirement and are living paycheck to paycheck that buy stuff they shouldn't. That's a lot of what you see.
Personally, I would never buy a car that exceeds 1/3 of my annual net income.
To me, that means if you're buying a $50K car, you should have a NET of $150K/yr, which means a gross of closer to $200K/yr.
Most people that buy $50K cars don't make that......if you don't care too much about savings, retirement, fiscal responsibility and don't mind a 72 month loan, you can get a $50K car for about $750/mo, which is $9,000/yr. If your priorities are in the wrong place, someone who makes $60K/yr can do that, and plenty of people make $60K/yr.
Who is able to afford one and who actually has one is not the same thing.
What you're asking is who can afford one. What you're observing on the road is who has one. There are plenty of people with no emergency fund, little saved for retirement and are living paycheck to paycheck that buy stuff they shouldn't. That's a lot of what you see.
Personally, I would never buy a car that exceeds 1/3 of my annual net income.
To me, that means if you're buying a $50K car, you should have a NET of $150K/yr, which means a gross of closer to $200K/yr.
Most people that buy $50K cars don't make that......if you don't care too much about savings, retirement, fiscal responsibility and don't mind a 72 month loan, you can get a $50K car for about $750/mo, which is $9,000/yr. If your priorities are in the wrong place, someone who makes $60K/yr can do that, and plenty of people make $60K/yr.
Why would you pay 30k for a Lexus when you can get the same car- a Toyota for way cheaper?
MisterDG
What is the deal? Toyota and Lexus both use the same cheap quality parts, just because Lexus reputation is so high as a luxury car doesn't make it better than other luxury cars. For example an Infiniti M45 or an Audi's a typically around the same price as Lexus's and they use way better parts.
Answer
I look at it the same way. Also, why would I want to buy a car for 30k when I can buy a decent - in shape house - for the same price, put 30k more into it and turn it around and sell it for 100k? Then use that money to buy a car that is 3 yrs old, 60k miles with 2yrs left on the the warranty for about 5k and walk away with money left over. When cars become the prices of small homes or 6 yrs worth of house payments, it's definitely time to rethink the economy in which we live.
Sorry for the ramblings, but I hope you see what I am getting at.
I look at it the same way. Also, why would I want to buy a car for 30k when I can buy a decent - in shape house - for the same price, put 30k more into it and turn it around and sell it for 100k? Then use that money to buy a car that is 3 yrs old, 60k miles with 2yrs left on the the warranty for about 5k and walk away with money left over. When cars become the prices of small homes or 6 yrs worth of house payments, it's definitely time to rethink the economy in which we live.
Sorry for the ramblings, but I hope you see what I am getting at.
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