BUYING A CAR FOR 30-35K and Your Bank Account

[Kevykev]

What amount in the bank would make YOU feel secure with a vehicle purchase of that size? (Good $ Range for this site right?)

We're talking Checking and Savings: Having what particular amount in YOUR bank account would make it OK for YOU to go out to the dealer and finance a new or slightly used vehicle in that price range $30,000-35,000.

Consider your current income as a factor as well.

you can consider the "Enjoy Life and buy what you want" factor or the "Financial " factor so there really is not right or wrong answer. I just wanted to see the views of others.

Vote and let's here your thoughts

[quickdodge®]

I honestly can not understand your question. Later, QD.

[civic95]

"If you can't pay cash, you can't afford it." Dave Ramsey

[Evil Goat]

we keep 6 months minimum of our total monthly costs in our savings, technically we live check to check, there are some weeks when i can barely put gas in my car, but ill be damned if im going to put my hand into my savings if i can skip eating out one day to put gas in my car....same goes with unexpected expenses, my wife slid off the road the other day, needed a new bumper, i pulled an extra day at work to pay for it, same for going to commerce at the end of the month, ive already pulled an extra day to pay for overnight expenses and racing

ive been there with over a $1k/month going to car payments and insurance and not have a dime to my name...it wasnt a good feeling, we sold our toys and cut back for a while, now i feel comfortable paying out over a grand a month in car expenses

[civic95]

Paying interest on anything except a house doesn't make sense.

[Kevykev]

we keep 6 months minimum of our total monthly costs in our savings, technically we live check to check, there are some weeks when i can barely put gas in my car, but ill be damned if im going to put my hand into my savings if i can skip eating out one day to put gas in my car....same goes with unexpected expenses, my wife slid off the road the other day, needed a new bumper, i pulled an extra day at work to pay for it, same for going to commerce at the end of the month, ive already pulled an extra day to pay for overnight expenses and racing

ive been there with over a $1k/month going to car payments and insurance and not have a dime to my name...it wasnt a good feeling, we sold our toys and cut back for a while, now i feel comfortable paying out over a grand a month in car expenses

Great Detailed answer, that's a real life scenario!

Paying interest on anything except a house doesn't make sense.

I completely agree with that statement, but that is subjective. Some people wouldn't have it any other way

[Kevykev]

Any more thoughts?

[Vayda]

I think that rent, utilities, and car/insurance payments should add up to about half of what i make every month (with the other half being for savings, food, gas, stuff, speeding tickets, et cetera). So how much i need saved before buying that car would depend on what i make and also the rest of my living situation.

I recently bought my car, and to total out to almost exactly half my monthly salary, i could afford an $80 payment. So i saved until i could put enough down to get the payment that low. But i agree that it doesn't make a whole lot of sense to pay interest on a car. My only reason for financing this was an effort to build a credit score, as i went into it with absolutely none.

[Motivation]

I think that rent, utilities, and car/insurance payments should add up to about half of what i make every month (with the other half being for savings, food, gas, stuff, speeding tickets, et cetera). So how much i need saved before buying that car would depend on what i make and also the rest of my living situation.

I recently bought my car, and to total out to almost exactly half my monthly salary, i could afford an $80 payment. So i saved until i could put enough down to get the payment that low. But i agree that it doesn't make a whole lot of sense to pay interest on a car. My only reason for financing this was an effort to build a credit score, as i went into it with absolutely none.

ha, one of them can be half of monthly salary itself, especially with the new law they are trying to pass...

[Vayda]

lol i wouldn't know. I've never gotten an actual ~speeding~ ticket. Had one for failure to maintain lane and one for failure to yield.

[4dmin]

technically you could get a car w/ probably jack in the bank as long as you can make a down payment or have steller credit... i would think if you can afford a 30-35k vehicle you better be able to have 5-10k in the bank. if you don't have that much in the bank then you don't have any reason to be buying a car of that price. too many what if's to think about when you got 500+ a month in a car payment.

[Kevykev]

I think that rent, utilities, and car/insurance payments should add up to about half of what i make every month


My only reason for financing this was an effort to build a credit score, as i went into it with absolutely none.

Being able to pay off all of your monthly responsibilities with on paycheck is outstanding but not common. Financing that car should be beneficial to you provided that no derogatory issues occur.

too many what if's to think about when you got 500+ a month in a car payment.

"what ifs" are notorious!

[Vayda]

I guess it gets a lot less common when you start talking about buying a car this expensive. That $500 car payment is over half what i currently make in a month.

[buddha@TeamFX]

I agree with the deal that all your bills shouldn't exceed 50% off your salary. Sometimes I buy cars to spend some money on them and flip them...I've yet to lose money and I told myself when I did that I'd stop. but I do think all the bills shouldn't meet no more than 50% of your monthly income. For me personally if I were going to be a $30-$35k vehicle it would probably be a newer diesel truck and I'd want to have atleast a steady $7500 in the bank.

[Echonova]

"If you can't pay cash, you can't afford it." Dave Ramsey

QFT

[ATK_Designs]

my ROT (Rule of Thumb):

1. Buy a car that's half your NET Salary.
2. Pay Cash if Possible.


So far, I'm good

[KPowerEP3]

For a car in this price range, there's a lot of things to consider. The car payment itself, insurance, gas, those are obvious. But then you get things like maintenance, the little 'oops' things that you would want to have fixed immediately on a car in this range [door dings, flat tire, whatever, call it incidentals if you will], and who knows what else. Sure, maybe you can make it fine with no money in the bank right now, but what if you lose your job, become sick, or anything else. You're boned. I agree with what was said above, that ALL of your bills should be able to be covered by your savings, at least for a few months.

[Kevykev]

Good views guys!

[The Ninja]

This is amazingly serious conversation for the whoreslounge.

[Batlground]

I pay cash for everything, i hate car payments

[1000cckiller]

I pay cash for everything, i hate car payments

thats why you drive cheap sh!t

[Got Milk?]

thats why you drive cheap sh!t

I rather drive a peace of **** than pay for a car that i feel that i don't own. At least with the peace of **** ik its my peace of ****. But with paying off a car, it never feels like its yours untill you get the tittle. It is always banks car.

[Kevykev]

Wow!

Excessive usage of a single phrase!

[Batlground]

thats why you drive cheap sh!t

well i dont want to pay 30K for a car that is instantly worth 20% less when i drive it off the lot.

I also dont like the debt hanging over my head.

Im saving to buy a house, and the last thing i want is a car payment.

I rather buy nice reliable $4000-6000 Daily Driver Hondas that require almost no maintanence and drive them into the ground. or sell them after 2 years for what i paid for them.

Yeah i guess i do drive cheap ****, but i also OWN my cheap ****

Im buying a GS400 soon, and ill pay $10,000 cash for it, no car payment.

thats how i roll.

PS: did the MUSTANG owner really just say i owned a CHEAP car?

[1000cckiller]

well i dont want to pay 30K for a car that is instantly worth 20% less when i drive it off the lot.

I also dont like the debt hanging over my head.

Im saving to buy a house, and the last thing i want is a car payment.

I rather buy nice reliable $4000-6000 Daily Driver Hondas that require almost no maintanence and drive them into the ground. or sell them after 2 years for what i paid for them.

Yeah i guess i do drive cheap ****, but i also OWN my cheap ****

Im buying a GS400 soon, and ill pay $10,000 cash for it, no car payment.

thats how i roll.

PS: did the MUSTANG owner really just say i owned a CHEAP car?

lol, this mustang owner just bought a house. I don't want a piece of sh!t because it always has to be fixed.

[TIGERJC]

well I guess I am a true dumbass, as I will be getting what I really want and financing it for 35k. I hope to pay it off in 2-3 years time, fyi I really have no bills so it is more realistic that I will be paying it off in that time b/c I am staying at home or in a dorm until I am done with college.

I know I should invest that money, but f.uck it. I have always paid cash for my cars and parts, atleast I have the title to my camry and ranger

[Batlground]

lol, this mustang owner just bought a house. I don't want a piece of sh!t because it always has to be fixed.

congrats, hopefully im not far behind you.

PS: You prob make ALOT more money than i do.

I have to hustle

[IndianStig]

I wouldn't feel comfortable doing that w/out at least $10k in liquid cash after making a down payment on the car if I was out on my own.

If I do buy a $30k car in my current situation (living in a dorm and either moving to an apt/house paid for buy parents) I would prolly do it with $3k in the bank after a down payment of atleast $5k. I'm not gonna drive that nice of a car for a while though unless its given to me...

[civic95]

Why not just save the payment amount each month, and pay cash for it in 3 yrs. You can use the $6000 you saved by not paying interest, and take a nice 3 week vacation for 2 somewhere.

[Kevykev]

Why not just save the payment amount each month, and pay cash for it in 3 yrs. You can use the $6000 you saved by not paying interest, and take a nice 3 week vacation for 2 somewhere.

Possible to Some, Impossible to many...."Unlikely" is a better word.


I respect your thinking!


Seems like the more money I make, the less money i spend - not sure if that's ultimately BAD or GOOD?

[ISAtlanta300]

Why not just save the payment amount each month, and pay cash for it in 3 yrs. You can use the $6000 you saved by not paying interest, and take a nice 3 week vacation for 2 somewhere.

In 3 years, that exact same model may not exist anymore... or has been replaced.... or the price has gone up since it's been redesigned.......