Jalopnik Financial Suggestion

Messages
4,112
Location
WA
Originally Posted by domer10
Think it was geared to these people especially younger ones who strap them selves into a 10 year car loan or less or buy a car that is 50g performance car when they make 25 k a year.
Good financial acumen starts young. Teach your kids, like am doing, how to save and be frugal with their money (for example how to know when something's a "deal" or not and needs v. wants) and they'll likely make good choices later on in life. Unfortunately those who could best use the advice from a Ramsey or Clark Howard aren't reading/listening to them.
 
Messages
8,955
Location
MA
Originally Posted by WhyMe
Originally Posted by skyactiv
Some of you are understanding it wrong. I think what Jalopnik means is that a married couple shouldn't spend more than 10% of their combined income on vehicles. If you got to finance it, a 100K a year income couple can afford a new Honda Accord as the payments wont be beyond 10% of their annual income. If I told you what my wife and I earn, you might wonder why I drive an Elantra.
This . if you make 100k , which is kinda poverty wages in my area , you should spend no more than $10k a year on your vehicle payments .
I think you're a little off there, if you're paying 10k, you're making $833 a month in car payments? Then you have insurance, gas, maintenance, taxes etc on top of that?
 
Messages
6,201
Location
New England
Thread starter
My only guess was it sends people to used cars where depreciation hit taken and a comfortable window for pesky auto repair and maintenance and insurance. No feeling strapped. I am going to try it for next purchase.
 
Messages
1,018
Location
Minnesota
We bought some new cars years ago in the 'rust years'. Young and dumb with 2-3 year loans and cars that rusted quickly and badly. Later the cars handled rust better and the govt quit allowing consumer debt to be deductible. So we bought a few year old used cars and saved up for the next one. Pretty soon we were able to do other things with the savings and also more for retirement. Many folks with 7 year car loans or leases and always a payment to somebody-I wonder if they will they be able to build enough savings for the future..
 

dnewton3

Staff member
Messages
8,459
Location
Indianapolis, IN
It's jalopnik for Pete's sake ... Of course they are going after the lowest common denominator here. 10% of your annual income on the total purchase price of a car? That's find if you want to run around in a cheap car that's worn out and not aesthetically all that great. But again - the answer is in the name of the website ... "Jalopnik". They're not going after high-end stuff to make high-end customers happy. It's all about the bottom line of the bottom feeders.
 
Messages
14,449
Location
The Old North State
Originally Posted by MrHorspwer
Reading the story helps. It's wasn't Jalopnik suggesting it. The topic stemmed from an article on CNBC from Sam Dogen of Financial Samurai. Jalopnik's stance on the article (specifically, Tom McParland) amounted to:
Quote
Oh boy, another "millionaire" dolling out car buying advice that is typically both not-helpful and limited in scope.
and
Quote
...the best advice I can give is to be honest with your own budget and understand your total expenses.
https://jalopnik.com/how-much-should-you-spend-on-a-car-based-on-your-income-1839886863
Thanks for the rest of the story and the link. And yes, reading the complete story with context did help.
 
Messages
24,425
Location
Central Florida
10 year auto loans in the future will NOT surprise me. There's a slowdown in vehicle sales in the USA and our economy needs people borrowing money to make big purchase items. Very low interest rates and new car smell make that shiny new vehicle irresistible. The next recession will be worse than 2009 and have many people wishing they didn't over leverage themselves to the point of bankruptcy.
 
Messages
49
Location
Murfreesboro, TN
I have a very low tolerance for debt. One way I have avoided debt is to buy cars that have depreciated enough for me to pay cash. I look for older cars with low mileage. Since cars don't rust down here, it makes it a little easier. This strategy allowed me to be totally debt free by the time I was 45. I have never made a huge amount of money, but we have kept our expenses low. I am now concentrating on retirement. I may not be able to retire early, but we should be able to live comfortably. If we always drove as good of a car that we could afford, we would still have car and house payments. It's not worth it to me. I have no problem with other people having debt. I just avoid it if I can.
 
Messages
14,204
Location
Central NY
Originally Posted by danez_yoda
i like the dave ramsey method. Pay yourself 500/month until you get enough to buy the car then buy it cash. then start saving for your next car.
That works great in parts of the country where cars can last 20+ years. Up here in the rust belt, once you hit 7 years, you're spending a ton battling rust .. every repair costs 10x because every single bolt snaps and has to be torched off. If I lived in Arizona, I couldn't even imagine myself driving anything made in this millennium!
 
Messages
10,000
Location
Waco, TX
Originally Posted by Astro14
$6,000/year for the average household for a car, or $500/month, is vastly different than a $6,000 car...
This sounds about right. $60,000 income = $6,000 x 4 years financed = approx $24,000 car (plus other fees, etc.) ^^ this scenario describes (pretty close) about 90% of the US population
 
Messages
3,016
Location
America
Originally Posted by MrHorspwer
Reading the story helps. It's wasn't Jalopnik suggesting it. The topic stemmed from an article on CNBC from Sam Dogen of Financial Samurai. Jalopnik's stance on the article (specifically, Tom McParland) amounted to:
Quote
Oh boy, another "millionaire" dolling out car buying advice that is typically both not-helpful and limited in scope.
and
Quote
...the best advice I can give is to be honest with your own budget and understand your total expenses.
https://jalopnik.com/how-much-should-you-spend-on-a-car-based-on-your-income-1839886863
Yeah, millionaires are usually clueless when giving advice and their advice is usually bad or unusable.
 
Messages
7,663
Location
MI
Originally Posted by Mad_Hatter
[quote=domer10]Teach your kids, like am doing, how to save and be frugal with their money (for example how to know when something's a "deal" or not and needs v. wants) and they'll likely make good choices later on in life.
Good advice, but you might be shocked how some kids take different directions in life in spite of good parenting. It's undeniable no matter how excellent you think your parenting skills are. Life is dynamic and there are no guarantees, period. You can stack the deck for better odds, but sometimes poop still happens. [/quote]
 
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