What kind of car do you own and % of salary

[HawkeyeNFO]

When I lived in base housing, it was easy to tell who owned the cars. The officers cars were usually 8-10 years old, while the enlisted generally had nicer wheels, perhaps with aftermarket rims. The NCO's seemed to prefer the crew cab pickup trucks. At my first squadron, one of the department heads even told all the junior officers that we "needed to drive nicer cars," because the enlisted were making us look bad.

 

[serie1926]

Interesting thread. I wished I was a person that looked at cars as appliances! Unfortunately, gear head for as long as I can remember. In regard to Lexus, best cars we've ever owned. Wife currently drives an IS350 and mine is an LS430. These are our 3rd each. My latest toy is, bought 3 weeks ago, Lamborghini LP 550-2.

As I get older, 50 next month, finding moderation in everything and debt free is key. God willing, we plan to retire at 55.

Hope this helps.

 

[NW-Bound]

If one can afford luxury and fancy cars, why not enjoy them?

Affordability criteria varies with the individual, but the following is mine. I hate to see dents on my cars, unless they are older. So, if I get an expensive new car and a low-life opens his door too wide in a parking garage and puts a dent in my car door, I would get very upset. Call me OCD, but that would bother me. So, I want to be rich enough that I could just drive it straight to the dealer and trade it in for a new one. Yes, I would want to be so rich that I could still look at an expensive car as still just an appliance that I could just trade in for another.

 

[rescueme]

Call me OCD, but that would bother me.

I'm with you on this one.

I have an '05 Caddy SRX that is my daily driver (purchased off-lease on EBay Auto) and although I don't drive that much (15K since Jan '08, when I bought it, and it currently has 50k on the odometer), it's the car I use if I go to any parking lot, along with my volunteer service with the local Meals on Wheels organization.

My "sunday car" (e.g. the sun must be out and the roads dry before I use it) is an '02 Mustang GT vert (purchased new). It sits in the garage, a bit like a pampered pooch or kept woman (both expensive to keep ).

Only 19k on the odometer, but on that rare spring day - or warm summer night, I'm glad I have "her".

I guess for "us types", two vehicles make sense (regardless of cost). It's like having two girlfriends. One to take home to meet momma, and one that you hope that momma never meets ...

 

[Nords]

When I lived in base housing, it was easy to tell who owned the cars. The officers cars were usually 8-10 years old, while the enlisted generally had nicer wheels, perhaps with aftermarket rims. The NCO's seemed to prefer the crew cab pickup trucks. At my first squadron, one of the department heads even told all the junior officers that we "needed to drive nicer cars," because the enlisted were making us look bad.

Once when our training command was seated in the all-hands auditorium, a few of the lieutenants started razzing one of their rank who'd just bought a $1500 Cannondale bicycle. He was a triathlete and felt that the bike would make [-]him feel better[/-] a difference in his performance.

He responded: "I don't own a car. I don't have to pay for gas or insurance, either. My bicycle reflects my values, not my not my net worth. How much are you spending on your transportation?"

End of discussion.

 

[donheff]

Once when our training command was seated in the all-hands auditorium, a few of the lieutenants started razzing one of their rank who'd just bought a $1500 Cannondale bicycle. He was a triathlete and felt that the bike would make [-]him feel better[/-] a difference in his performance.

He responded: "I don't own a car. I don't have to pay for gas or insurance, either. My bicycle reflects my values, not my not my net worth. How much are you spending on your transportation?"

End of discussion.

Bully for him I say, as DW and I wait for delivery of our new custom built steel sport touring bikes.

 

[imoldernu]

Model of our cars?

"Paid for" ...

Salary? Ain't got no stinkin salary (living off our retirement investments) ...

BTW, my/DW's cars"? We paid cash. That can't be computed against any "salary" (retired or not)...

Our goal? To remain frugal (OK, cheap ).

Couldn't say it better +1

96 Cadillac SLS 70K miles (Estate car bought 2004 $5000)
98 Town Car 110K miles (Bought 2002 $18,000)

Both look showroom perfect... total spent on repairs over the years for both cars... about $2500.

Ummm... prefer "frugal"....

 

[NW-Bound]

If one can afford luxury and fancy cars, why not enjoy them?

Affordability criteria varies with the individual, but the following is mine. I hate to see dents on my cars, unless they are older. So, if I get an expensive new car and a low-life opens his door too wide in a parking garage and puts a dent in my car door, I would get very upset. Call me OCD, but that would bother me. So, I want to be rich enough that I could just drive it straight to the dealer and trade it in for a new one. Yes, I would want to be so rich that I could still look at an expensive car as still just an appliance that I could just trade in for another.

I forgot to add that using my own criteria of affordability, I would not be able to afford the 2 cars that I bought new, with each costing less than 1% of my net worth.

As I am so [-]cheap[/-] frugal, despite my OCD, the only thing I can throw away if it gets scratched would be a bicycle.

Oh wait! I do not even throw away a scratched bicycle.

 

[ls99]

I have not had salary in nearly 6 years, can't answer.

 

[oldnews]

Wow, I was young and stupid once as well. Paid almost everything I had for a 1979 280ZX in 1985. Now 46, paid cash for all my cars with the last new one being a 2008 4Runner V8 costing 40,000$....will keep it a lifetime most likely.

Still have my 1996 4Runner with 263,000 miles as a daily driver to work.

 

[KMyer]

I just bought a Ford Fusion for less than 10% of my gross. I was tempted to drive an Audi but resisted the urge because I'm too cheap.

I guess it was time to replace my 12 year old car because my wife is now on a friendly first name basis with the owner of the local car repair shop, and he kept telling her to tell me to spend some of my money and get a new car. He's either a great businessman or a terrible businessman.

 

[imoldernu]

A timely article that addresses a "real world" situation for the average worker, in terms of the dollars and expectations of buying a car. Interesting to see that 16% is the figure given in the calculations.

Mmmuffler's rumble is the sound of money - Chicago Tribune

 

[ERD50]

A timely article that addresses a "real world" situation for the average worker, in terms of the dollars and expectations of buying a car. Interesting to see that 16% is the figure given in the calculations.

Mmmuffler's rumble is the sound of money - Chicago Tribune

That 16% is based on the monthly payment over 4 years with ~ $25K loan on ~ $31K car. They used an average $3,400 monthly income.

The car costs about 76% of annual income.

I have no idea what numbers people are talking about here, I suspect it's a mix, making this whole thing even more ludicrous. And how about the diff between buying a car every two years versus every 12 years?

Math is one thing, application of that math is the thing.

-ERD50

 

[FUEGO]

Let's see - 13 years ago when DW and I splurged for our new cars (honda civic and accord) my car was probably 300% of my salary (though I derived the majority of my income from an hourly engagement at that time IIRC). DW's car was probably 67% of her salary at the time. The same cars today would be around 25-31% of our respective current salaries. I was still in undergrad when I bought my car (paid for by my scholarships which I wouldn't count as "salary") and DW (SO at the time) had just graduated and started an entry level job.

We'll be FI in a few years at age 35 or so. Buying reliable, low initial cost and low long term cost vehicles and keeping them forever has certainly helped us achieve our financial goals. I imagine buying luxury cars and driving them into the ground might have extended our FI date by a year or two, if we planned on continuing that spending pattern during ER. Buying luxury cars and replacing them every few years? Scary thought how many years that would add to our ER date. I would guess we would need at least another quarter million or maybe more to fund that indefinitely versus buying low-mid range sedans new(ish) and driving them into the ground. Probably average around $8000-10000 per year in additional depreciation, sales and property taxes, insurance, maintenance (?), operating costs, etc.

I'm pretty glad we don't have luxury cars, because it would be a little heartbreaking to watch your expensive car get dinged up in parking lots, or covered in debris and dirt on a construction site (in my case).

I think our next cars (or minivans, given the size of our 3 kids) will be in the $10000 or so range, used, and hopefully no more than 5-7 years old. I'm still debating whether we need 1 or 2 cars during ER, but with 3 kids in school I'm thinking 2 will be worth having (in spite of decent bus service that I occasionally use where we live in the city).

 

[rodi]

I have no idea how to answer this question.
We paid cash for the cars years ago. DH's truck predates our marriage. It's a 95 PU, and still going strong. Sure, we can't fit the whole family in it (standard cab and family of 4)... Rather than buying a replacement, we just use my car (7 year old hybrid highlander) when we need to fit more people in.

So - since DH's car is 17 years old - do I take his original purchase price and divide by the number of years he's owned it - then use that against his salary? Or take the purchase price against his salary the year he bought it.

I don't like car payments. I don't like waste - and if a car still functions, it's wasteful, IMO, to replace it. (Reduce, reuse, recycle). So we'll have these cars for many years to come. They are garaged, maintained, and our annual mileage is low.

 

[skyvue]

I bought a new Chevy Cruze last year (with cash). It represents 12% of my annual gross income. I hope to drive it for 12 years.

 

[Andre1969]

I been advised I spent too much on my car and curious what people on this board have spent on cars.

I spent approx 50% of my gross on a Lexus.

People here have advised me to downgrade based on my goal to retire young. After driving a Lexus I still plan on sticking with luxury cars. This will delay my goal. But it is a personal choice.

I'm a little confused here. Are you saying that you paid cash for a Lexus that was 50% of your gross income for the year? Or, are you financing the car, and the monthly payments are running about 50% of your gross?

If it's the first, I'd say that's no big deal, as long as you don't do it every single year. Back in November of 1999, I bought a brand new Intrepid that, with tax, tags, everything, out the door was probably about 45% of my gross for the year.

But, in actuality I only put $2,000 down and financed the rest at 0.9%, so the monthly payments were probably about 8-9% of my gross monthly income.

And after that, I got cheaper. The Intrepid got totaled when it was about 10 years old, and I replaced it with a used 2000 Park Ave. I paid cash for it, and that was probably about 13-14% of my gross for the year. And, more recently I bought a leftover-new Ram, which was probably about 28% of my gross for this year. But, it'll probably be around for years, so in the long run it'll come out pretty cheap.

 

[zxcvlkj]

thanks to everyone that shared. this thread has grown too large for me to keep up. i hope people continue to share their experience with car purchases.

Some bold assumptions, especially for a newbie, but I hope the thread serves your purpose.

thanks, bold and accurate assumptions are my specialty.

 

[sailor]

All of these paid cash.
My first car 7% of salary, second truck 0.93% of salary, current truck 11%. All used.
Bicycles - 10% annual salary (I was still in college), 0.43% salary, 0.23% salary.

 

[Birchwood]

I have a very good income and buy brand new vehicles and hope to use them until the wheels almost fall off. I will never buy a luxury vehicles like a Lexus or mercedes, since for the price of one I can have two different useful vehicles.
I have a Ford F150 Super crew and a Honda Accord V6. With what I paid for these two, I can pay for a Lexus or Mercedes, but I rather have the two.

 

[Omalley]

Grew up wanting German luxury cars, now I just need transportation as I prepare for FIRE. Here is our adult family history of cars.

1997 - Pontaic (new) - 40% of household income at that time (financed over 5 years, kept 9 years)
2003 - Mazda (new) - 20% of household income at that time (cash, 9 years old, plan 6-11 more years)
2005 - Ford (new) - 10% of household income at that time (cash, 7 years old, plan 5-8 more years)
2009 - Acura (used) - 8% of household income at that time (cash, 7 years old, plan 5-8 more years)

 

[tinlizzy]

1995 Nissan Altima purchased used in 97 for $10K (10,000 miles). Still driving it! It looks like it has a skin disease but starts every morning and rarely has any problems. 20% of income at the time. Just hit 97,000 miles.

 

[Mulligan]

1995 Nissan Altima purchased used in 97 for $10K (10,000 miles). Still driving it! It looks like it has a skin disease but starts every morning and rarely has any problems. 20% of income at the time. Just hit 97,000 miles.

You better watch out Tin, you could be getting dangerously close to considering the car a badge of honor. This disease has hit me. 5 years ago, I was going to trade mine in within 12 months. Well, I still have it scratches, dents and all and it is around 185k. I'm starting to think I will try for 225k just for kicks. The odd thing is other than oil changes, I have treated it like a red headed step child. I haven't even ever changed the transmission fluid, or have given it any type of tune up, but yet it still runs great.

 

[UnderTheRadar]

You better watch out Tin, you could be getting dangerously close to considering the car a badge of honor. This disease has hit me. 5 years ago, I was going to trade mine in within 12 months. Well, I still have it scratches, dents and all and it is around 185k. I'm starting to think I will try for 225k just for kicks. The odd thing is other than oil changes, I have treated it like a red headed step child. I haven't even ever changed the transmission fluid, or have given it any type of tune up, but yet it still runs great.

My advice, don't change the transmission fluid now. I have seen a few instances of issues starting afterwards.

 

[razztazz]

Long ago I got a car from inside a cereal box, but never one from inside a can. (Sorry.)

I spent 50% of salary once for a car, but then I generally keep 'em for decades.

And I thought it was just me! It didn't cost 50% of my gross but my Dodge Shadow turns 20 in May