your dream truck is 1/3 of monthly pay .. do you buy or not
02-16-2018, 09:03 AM
#21
Official HTT Greeter
I must be missing something....Are ya'll all driving sub-$10k vehicles? or making over $100k/yr?
10% of $100k is $10k....not saying that's a bad strategy, just seems uncommon.
How does the down payment figure into that? I financed $28k on my truck. Slightly less than half of my guaranteed gross income.
10% of $100k is $10k....not saying that's a bad strategy, just seems uncommon.
How does the down payment figure into that? I financed $28k on my truck. Slightly less than half of my guaranteed gross income.
02-16-2018, 09:14 AM
#22
TOTM 8/2019
I would say, for 90% of the time, this would be a NO. But, if you live at home, no rent or any bills, I'd do it. 
Maybe lease it and enjoy it for 3 years even.
Maybe lease it and enjoy it for 3 years even.
02-16-2018, 09:16 AM
#23
I must be missing something....Are ya'll all driving sub-$10k vehicles? or making over $100k/yr?
10% of $100k is $10k....not saying that's a bad strategy, just seems uncommon.
How does the down payment figure into that? I financed $28k on my truck. Slightly less than half of my guaranteed gross income.
10% of $100k is $10k....not saying that's a bad strategy, just seems uncommon.
How does the down payment figure into that? I financed $28k on my truck. Slightly less than half of my guaranteed gross income.
02-16-2018, 09:19 AM
#25
Rich people save...Poor people spend!
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Nitrodoc (02-16-2018)
02-16-2018, 09:26 AM
#27
If you have no other bills...why not save up and buy it outright?
02-16-2018, 09:51 AM
#28
Senior Member
Not enough information to offer advice. Maybe the OP is an empty nester with a flush retirement but I'm going to guess not or they wouldn't be asking the question. As to the save up and pay cash for it approach - I'm not a fan of that either. It's just a simple cost of money test. If I can earn more on my investment than the interest on the truck loan it would be stupid to pay cash - and that's a real situation given that you can often get no interest or very low interest loans. That's basically free money so why not use it even if you've got enough liquid cash for a depreciating asset like a truck?
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wizwor (02-17-2018)
02-16-2018, 10:02 AM
#29
Keeper of the Forest
I guess it depends on what 33% of your monthly income actually is?
33% for some will be 3k, for some it will be $500.
For me, I decided that I wouldn't buy a truck more expensive than 1/2 the gross income I make in a year. After I decided that, I saved for 3-4 years and just bought the vehicle outright.
I realize that isn't something everyone can do. That being said, I think that basing it off of a percentage of you gross yearly, even when financing is a smart choice. So IF you want to finance 50k, imho you should be making about 100k a year. If you can't float that, then save a down payment so you can finance less and meet that 50% of your yearly mark.
Just my 2 cents
33% for some will be 3k, for some it will be $500.
For me, I decided that I wouldn't buy a truck more expensive than 1/2 the gross income I make in a year. After I decided that, I saved for 3-4 years and just bought the vehicle outright.
I realize that isn't something everyone can do. That being said, I think that basing it off of a percentage of you gross yearly, even when financing is a smart choice. So IF you want to finance 50k, imho you should be making about 100k a year. If you can't float that, then save a down payment so you can finance less and meet that 50% of your yearly mark.
Just my 2 cents
