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Old 12-04-2012, 12:35 PM
ND40oz ND40oz is offline
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Location: Wiesbaden
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Originally Posted by ndabunka View Post
You are going to find all kinds of responses and some are financial nuclear bombs (Some guys on here put over 50% of their take home into a car which is INSANE!).

However, your income is exceptionally high for a 31 year old so I take it that both you and your wife work to make that $150K income ($75K each). Regardless, the math is the same & you already know to fund your retirement and address savings. I am a bit concerned that you only have $1K cash reserves with such a high income and few current debts. If you have $5,500 in discretionary income at the end of a month...what are you spending all of that on.. today? If you do your home right, you will be putting 20% down on it which may explain where huge chunks of your discretionary income is going. That may help us answer your question but isn't required. As long as you have $500 to a thousand in cash available to cover the vehicle you can buy pretty much ANYTHING you want.

Current car... you will discover that keeping the 350Z will be pointless in the future. You will find yourself driving it less and less and it will simply continue to loose value. My recommendation is to roll the equity from that vehicle into the next in order to get what you want (new X5) rather than settling for a used Toyota Highlander (PS - we have both but I came to this X5d from a used low-mileage '06 750Li)
I think you're reading 1 year reserve in the bank as 1k reserve in the bank, at least that's how I read his initial statement.

As for keeping the other vehicle(s), it all depends on if you want to keep your fun car, for some people that's important, even if they don't get a lot of miles. Plus, a 350z probably has taken the biggest depreciation hit already and isn't loosing much per year at this point.
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