It is low, although most families have 2 cars.
Originally Posted by Emilner
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...
But you are right, net worth, whether you paid off your mortgage, regional factors etc. make a big difference.
Nonetheless I would discourage a young person from spending a lot on a car. The value of investing for young people is very high.
I find that cars is where most people piss away money and struggle later in life.
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