Quote:
Originally Posted by Andrae26
I still believe you should be making 3 times as much as any car cost before you buy it.
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This was always my rule of thumb when I was younger and buying new cars. My first brand new car cost $2,000 and I was making $6,000/yr. Next car cost $4,000 and I was making $12,000. This continued to when I bought my S2000 for $32,500 and I was making ~$90,000. I retired before I bought my next new car, which was the M4, so that was no longer a factor.
However, as you get older and/or your income continues to increase, if you get into the 5% or less bracket, you have more disposable income and you can afford to spend more on a car, or other luxury items.
Another factor to consider is that purchasing a house is almost always a better investment than purchasing a car.