How much of your wealth in cars?
04-21-2006, 06:02 PM
#1
Racer
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How much of your wealth in cars?
How much of your wealth are you preapred to put in cars? For me I would say 10-20% and no more. I knew a girl once who worked 4 jobs to pay her car payments. I was thinking you are f'ing nuts!
04-21-2006, 06:14 PM
#3
Race Car
Wealth, as measured by net assets would almost require a young person to have a greater percentage of theirs in a car (if they have one) simply because they have not acumulated many assets. As you get older, and your assets grow, automobiles will most probably become a lower percentage of your wealth. At least I would hope they do for most people.
My rule of thumb is to never put more than 10% of your wealth into a depreciating asset (like cars, boats, etc).
My rule of thumb is to never put more than 10% of your wealth into a depreciating asset (like cars, boats, etc).
04-21-2006, 06:54 PM
#5
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Don't we all live in our cars? That front trunk can be remarkably comfortable as a sleeping birth, cigar lighter can double as a small cooking element. 
All kidding aside, yeah I agree: less than 10% or else you spend all your time worrying about it instead of enjoying it. IMHO
All kidding aside, yeah I agree: less than 10% or else you spend all your time worrying about it instead of enjoying it. IMHO
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04-21-2006, 09:04 PM
#8
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Wealth is very relative, I think self worth is more important that net worth.I know if i cant pay cash I wont buy.I realize not everyone can do this, but maybe that's why most people are in debt.I cant see anyone spending more that 5% of their annual income on a car, as i said its all relative.
04-21-2006, 10:03 PM
#10
Chandler!
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So people that have said they spend no more than 5% of their income on cars make about $2,000,000 a year for $100,000 car? I'm very poor compared to you guys.
04-21-2006, 11:39 PM
#13
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I think he meant in payments.
Originally Posted by riad
So people that have said they spend no more than 5% of their income on cars make about $2,000,000 a year for $100,000 car? I'm very poor compared to you guys.
I am not getting down off my soap box.
04-22-2006, 12:34 AM
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Originally Posted by Patric F.
I would agree that if you are paying more than 5% of your annual income on car payments, something is out of wack. However, this assumes that cars are not your hobby. I have friends that drive mundane cars, but think nothing of spending $20k-$30k per year on a country club membership. They will look at me like I spend too much on my cars, but then drop that kind of dough on golf. I should also mention that I am a member of a country club also, so I guess I have too many expensive hobbies. Oh well, you cannot take it with you. I plan for the future and save a large chunk of my income, but I am going to have fun with the rest. I had cancer 5 1/2 years ago. When you come face to face with death, you realize that accumulating wealth is not everything. So, if I want to drive a 996 and belong to a country club, I am doing it.
I am not getting down off my soap box.
I am not getting down off my soap box.
Funny story about the p-car and golf. I have not had my p-car long, but I am quickly realizing how much people react to it. I went golfing today and in the 8 minutes between me leaving my clubs at the bad drop and getting to the first tee, the starter had been informed that someone in the group is driving a "ferrari or something"....
thought that was hilarious
