09-10-2012, 10:33 AM
Join Date: Jul 2009
Mein Auto: 2014 M5
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.
2014 Porsche 911 Turbo S
2015 Mercedes C300 4MATIC
Memberships: BMW CCA, Peachstate PCA, NMA, AAA, RAC
2015 Jaguar F-Type R
2014 BMW M5 Individual Dinan Stage 1
2013 BMW M5 Individual
2012 BMW 550i Dinan Stage 2
2004 BMW M3
2001 BMW 330Ci
1997 BMW 328Ci
1994 BMW 325Ci