View Poll Results: Responsible Net Worth for owning a $150K sports car?
$500,000
35
16.51%
$1MM
39
18.40%
$1.5MM
26
12.26%
$2MM
50
23.58%
$3MM+
62
29.25%
Voters: 212. You may not vote on this poll
Responsible Net Worth for owning a $150K sports car?
10-23-2015, 01:54 PM
#151
Cruisin'
Join Date: Sep 2012
Posts: 9
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Oh man, jumping in this one--hoping for the best. My 2 cents:
A) no one enjoys being owned by their things. If you have big payments on expensive things and hate your job you have to pay for them, you will not only cease to enjoy life you'll start hating those things endenturing your servitude. But if you love what you do and cash flow enough to have a few nice things while not sweating a monthly payment, what's the harm? You only get one shot at this life.
B) many dream of owning a car like a Porsche, and rightly they should! As I recall, "healthy" debt to income is something like 30% house and all in less than 40%. If you like this rule, and all your non-home bills are less than 10% with a Porsche payment--why not do it? Further, if a Porsche brings you joy and your home isn't a high priority (or you live somewhere with a low cost of living) you could turn down the home 30% and turn up the other 10%, still staying under 40%...
C) if you can write a check for a car, awesome--you were born lucky or worked hard (or both). For the rest of us, life is about trade-offs. I'd rather have a GTS than--for example--travel abroad. Been to Europe, it was great but my preference is a GTS in the garage. The Porsche/no Porsche gap is narrower than folks may think: the average car payment in the U.S. is less than $500. My GTS will be around $1600. That's $1100/mo or about $13,000 a year delta. Most upper-middle class or higher families have $13k in their annual budget for fun: maybe a boat (payment), a time share, that big trip to Paris for 10 days, a week at Disneyworld for a family of 5, whatever. I'd rather start a Porsche each morning and (most importantly) my wife is on board with this.
D) if looking for an outsiders view, Dave Ramsey (I think) champions not having more car than your annual income. Not going into his views on debt, this view holds a $150k car plus any other cars you have (loan, lease, or own) should = your household income. To keep simple, if you are a single person with only this one $150k car, you should gross $150k or more.
A) no one enjoys being owned by their things. If you have big payments on expensive things and hate your job you have to pay for them, you will not only cease to enjoy life you'll start hating those things endenturing your servitude. But if you love what you do and cash flow enough to have a few nice things while not sweating a monthly payment, what's the harm? You only get one shot at this life.
B) many dream of owning a car like a Porsche, and rightly they should! As I recall, "healthy" debt to income is something like 30% house and all in less than 40%. If you like this rule, and all your non-home bills are less than 10% with a Porsche payment--why not do it? Further, if a Porsche brings you joy and your home isn't a high priority (or you live somewhere with a low cost of living) you could turn down the home 30% and turn up the other 10%, still staying under 40%...
C) if you can write a check for a car, awesome--you were born lucky or worked hard (or both). For the rest of us, life is about trade-offs. I'd rather have a GTS than--for example--travel abroad. Been to Europe, it was great but my preference is a GTS in the garage. The Porsche/no Porsche gap is narrower than folks may think: the average car payment in the U.S. is less than $500. My GTS will be around $1600. That's $1100/mo or about $13,000 a year delta. Most upper-middle class or higher families have $13k in their annual budget for fun: maybe a boat (payment), a time share, that big trip to Paris for 10 days, a week at Disneyworld for a family of 5, whatever. I'd rather start a Porsche each morning and (most importantly) my wife is on board with this.
D) if looking for an outsiders view, Dave Ramsey (I think) champions not having more car than your annual income. Not going into his views on debt, this view holds a $150k car plus any other cars you have (loan, lease, or own) should = your household income. To keep simple, if you are a single person with only this one $150k car, you should gross $150k or more.
Thank you for this response. The people here who are like bruh you need 3m cash in hand to buy a 150k car are just WAY too conservative.
10-23-2015, 02:02 PM
#152
Back on topic, this whole discussion is kinda nonsensical, as in the end it's a personal decision, i.e., how comfortable one is with debt and risk and how important the car is to them. Kinda like what's your favorite color.
But I don't know any self made wealthy people that were irresponsibly spendy on the way up.
10-23-2015, 02:18 PM
#153
Rennlist Member
10-27-2015, 05:30 PM
#154
Nordschleife Master
exactly!
great, interesting thread.
great, interesting thread.
People that keep the dealerships in business tend to trade every couple years on the new model and are usually underwater on the loans, the banks and dealerships will somehow continue to make the deals. The problem with this scenario is with the person that does this and is suddenly out of work-especially in this economy. They cannot sell their expensive car and they have to turn it in and ruin their credit. I would never let myself get into that situation.
