When buying a car, suggested percentage of income...
 

Its said that your home mortgage or rent shouldn't be more that 1/4-1/3 of your monthly income, so more or less about a weeks pay. Is there a "suggested" percentage of monthly income that should be spent on your car? Anyone with financial advisor experience?

I've always wondered this for some reason...

Just pay cash for a Ferrari, like everyone else on GFY.

:1orglaugh

maybe 1/8

Ahaha.

Red or black?

:1orglaugh :pimp

Ask Rhino22.. he seems to know his shit.. :2 cents:

There are a lot of ratios for everything. Easiest way not to have to worry about them is buy the house first then spend whatever you want on a car. That being said most lenders like your payment to be less than 15% of your income. So if your GROSS income is $5000 you can handle a payment upto $750.00 in the lenders eyes.

midnight blue :thumbsup

less then 25% of your monthly income (if you dont make a lot of money, if you make a lot of money i wouldnt spend more then 10% of my income)... car note should never exceed house note or rent :warning

I would never ever spend ~50% on house + car. Car is far down on the priority scale for me. It's just a thing that takes you from A to B and racks up parking tickets on the way.

yeah but 50% of the country does not have that choice... if you make 24K a year (a lot better then min wage) thats $1000 a month for car and house... which is tough even if you drive a neon and live and in the getto. Thats why i said no more then 25% if you dont make a lot and less then 10% of you make good money. If you make 120K a year ($10,000 month) 1000K a month for a car is about about a 50K car and even a lot at 10%.

get 1 of each in case you cant decide, thats what i did.

http://www.edge-inc.net/images/cars/...360-Spyder.jpg

http://decorateyourgarage.com/store/...etta-black.jpg

but seriously though, i wont buy a vehicle unless i can easily afford to pay cash for it. but then again i dont really care about cars, i would much rather invest it.

:1orglaugh :1orglaugh

If you make min. wage, then you can find a decent car that just rolls for $500 that will last you a year. If it lasts you a year with no repairs (very possible if you know someone who can help you find a good car) it cost you $42/mo excl. gas. Even if there's minor stuff to fix, it would be cheap.

Whatever color matches the first picture you find on eBay.

I agree with you there.

pay with cash, why is that a problem

735 Fico Score=No questions about income :winkwink:

What color is your Ferrari?

Buying should consider a certain percentage of your income..Though it's comparatively different to the percentage of income that you consider when buying a house...

Buy used until you can afford to pay cash for a new car. That;s my advise.

Sly, you don't have to buy me a car man, I put out for free

lease a car with your biz