Is this financially irresponsible?

BigSteveO

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I ended up deciding on the Black Diamond. My friend helped me work through the decision, "Just because you have bigger tires doesn't mean women are going to hop in and try to have sex with you."
But it can't hurt your odds 😎





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GaryB2220

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Since I have all this time on my hands waiting for word that production has started, I am constantly looking at B&P thinking, maybe I should not get a BL and go with a loaded BD? Then I look at the price difference and break it down per year, per month, per day, and tell myself "wait a minute, a BL is only the cost of a cup of coffee each day! I can do that!"

Is that genius or what?
are you drinking $17 cups of coffee every day?? Must be pouring maple wood smoked bourbon in your hot bean water
 

Cappy

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We call ourselves DINKs (double income, no kids) 😎
Screen Shot 2021-04-08 at 1.27.23 PM.png
The not having kids part is HUGE. I love not having kids. It's not that I hate kids, I just love not having them.
 

Judge Rufus

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I've always heard as a rule of thumb that whether you are purchasing a car for cash or financing it, the price of the car should be no more than 35% of your annual gross pay.

So if you are buying a $50,000 Bronco, you need to be making at least $143,000 per year.
 

SirDapperDom

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Curiosity from an old retired guy, what do young single people consider "GOOD MONEY" these days?
I think that's relative to a lot of young ppl these days.

One of my friend groups is clearing 300-400k from one or two sources of income and we consider that to be GOOD money at this time. (We are all in Enterprise tech sales/IT)

Another friend group is in the 100-150k range and they are very happy as well.

It's very subjective I'll admit. We live in DC/Northern VA where COL is absurd. So clearing anything over maybe 200k is considered good money here.
 

Pancho Kornwallace

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Yeah but the loan is originated at a point in time and doesn't inflate. I'm not paying off 2027 dollars in 2027, I'm paying of 2021 dollars. If I borrow $10000 in 2021, my equivalent income in 2027 is higher from COLA/inflation adjustments, but that $10000 is still the same $10000. I'm no expert, just spit balling here. :Shrug
There are many other factors, some of them are exogenous.

That is why I actually do not mind leases, because it gives you cost certainty and payoff amount certainty. Also, you can configure them so 100% of all mechanical issues are covered and with FP points, your oil changes are too. There is a risk if you cannot make payments, so make sure those payments are low enough that you could pay it off in full if you had to.

I got a lease for $220/month (after a trade in of a 11 year old car) for 2 years on a 4WD Escape. I just need to keep the mileage under 24K and I can even pay it off early if I want.

As for the Bronco, I am buying it with a local credit union interest rate (under 3%). That is more than reasonable for an inflation adjusted amount.
 
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Brongo

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I think that's relative to a lot of young ppl these days.

One of my friend groups is clearing 300-400k from one or two sources of income and we consider that to be GOOD money at this time. (We are all in Enterprise tech sales/IT)

Another friend group is in the 100-150k range and they are very happy as well.

It's very subjective I'll admit. We live in DC/Northern VA where COL is absurd. So clearing anything over maybe 200k is considered good money here.
This would be a good poll to post.
 

Efthreeoh

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You should see the excel sheet I designed to help me make sense of all this stuff. Taking into account MSRP, total price, interest rates, calculations for different down payments, adjustments per month from my salary, its ridiculous. Long story short the difference in price today long term is negligible as long as you can justify having it.
What, like no one else does this with Excel when they buy a car? :)

Mine has all the taxes and DMV/dealership charges built in. Loan payment term, interest rate. If I'm not within a $1 of what the dealership comes in at, I show him where he is wrong.

Oh and the amortization schedule too...
 

SirDapperDom

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This would be a good poll to post.
I am curious too, but there are a lot of factors that go into it. Location, age, etc.

At the end of the day, buy what you believe you can comfortably afford. Life is short.
 
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Pancho Kornwallace

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I penny saved is NOT a penny earned.

Most people who have regular jobs cannot make the same hourly rate for an incremental hour more of work....Plus you have taxes...Plus you have the time value of money.... plus you have all the costs to get to that extra hour of work (transportation, clothing, lunch food etc).

Add it all up, and a penny saved is actually closer to 2 pennies earned.
 

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