I think that the number is quite low. A family making $200k a year can spend between $333 and $500 a month on a car? If you make $500k a year you should budget between $833 and $1250? It's impossible to say there is a correct percentage. There is a massive difference in cost of living from one region to another which will completely change how the numbers come out. Personal finances also play a huge roll. A person owns their home outright vs someone heavy in mortgage debt there will have a lot more disposable income...
Originally Posted by Stealth.Pilot
I think 10% of pre tax income is an absurdly high amount of money to spend on a car. Remember this is pre tax so if you look at it as percent of disposable income it is a lot more. Especially when you also net out mortgage payments, children's school fees, wife/girlfriend, etc.
I would advise spending no more than 2-3% of income on a car. Better to save and retire early. Driving a nice car is great, but not if it means working till old age. I'd rather retire by 50 than drive Bentleys and Ferraris.
2012 650i convertible, titanium silver, vermillion red, M sport, IAS, ARS, premium sound w/B&O, cold weather, drive assistance, luxury seating, 20's, leather dash, ceramic controls, BMW apps.
2012 750IL x drive, imperial blue/oyster, a finely loaded beater car...
2010 Escalade ESV Platinum nuff said....
2011 550ix (gone)