[dkhm3]

depends on the month.

[m3forme2016]

Originally Posted by ItIsChrisM

3% of gross.

Loan. 6 year term (5 remaining).

Should probably clarify if that's towards a lease or a loan, no? Terms might help too if you're trying to make comparisons.

Wow, I pay 8.3%. I need to raise my income.

[///M-er-gized]

Why do people think that if they paid cash for their car, they're paying 0% of their income?

I pay 0% of my income because I paid cash.


WTF!

You didn't get the car for free. That either came from your salary, savings, net earnings from investments, or an inheritance.

If you have a net worth of $2.5 million, and you paid $75,000 in cash for your car, that's still amounts to 3%.

Come on guys!

[Xtabi]

Originally Posted by ///M-er-gized

Why do people think that if they paid cash for their car, they're paying 0% of their income?

I pay 0% of my income because I paid cash.


WTF!

You didn't get the car for free. That either came from your salary, savings, net earnings from investments, or an inheritance.

If you have a net worth of $2.5 million, and you paid $75,000 in cash for your car, that's still amounts to 3%.

Come on guys!

Not sure why anyone would want to pay cash. My loan @ 2.14% is not the greatest rate but the capital not sunk into a car is doing a lot more work over four years elsewhere.

[Xtabi]

Originally Posted by ///M-er-gized

Why do people think that if they paid cash for their car, they're paying 0% of their income?

I pay 0% of my income because I paid cash.


WTF!

You didn't get the car for free. That either came from your salary, savings, net earnings from investments, or an inheritance.

If you have a net worth of $2.5 million, and you paid $75,000 in cash for your car, that's still amounts to 3%.

Come on guys!

Not sure why anyone would want to pay cash. My loan @ 2.14% is not the greatest rate but the capital not sunk into a car is doing a lot more work over four years elsewhere.

[GrussGott]

Originally Posted by ///M-er-gized

If you have a net worth of $2.5 million, and you paid $75,000 in cash for your car, that's still amounts to 3%.

Not to mention the opportunity cost of that cash that could be earning interest

[SD ///M4]

Originally Posted by Gibson6594

It depends on your interest rate I suppose, but I don't get this line of thinking. Wouldn't you rather have that money in an account working for you? My loan interest is 0.9. No way I'm paying that off early, it's practically free money. I'll take that payoff amount and keep it earning and use that money to pay off the car.

I got that rate too in February/March last year. Makes no sense to pay cash or even use your HELOC if you can get that rate. Now it's 3.15%. It better be a lot better than that when we order my wife's M3 next year.

[Xtabi]

Originally Posted by GrussGott

Not to mention the opportunity cost of that cash that could be earning interest

Or as I was thinking in my post above...dividends.

Take that chunk of change and, at the minimum, buy some MSFT.

[///M-er-gized]

Originally Posted by Xtabi

Or as I was thinking in my post above...dividends.

Take that chunk of change and, at the minimum, buy some MSFT.

Years ago I sold $35,000 worth of stock to buy my wife a car. I paid cash. At the time, I was bragging how I paid cash for my wife's new car. However, that same stock would be worth over $80,000 today.

I told my wife that that's the most expensive car we ever bought. I just bought her another car a couple weeks back. This time I paid 35% in cash (from our money market, no stock sold) and financed the rest for 48 months at 0% interest. Subaru was offering 0% interest rates for those that qualify. I learned from my mistake.

[jmg]

Originally Posted by GrussGott

Not to mention the opportunity cost of that cash that could be earning interest

Not to mention all the hookers and coke you could be buying all along.

[badbimmer]

100%. I live in my car.

[bonsta101]

2 cars, 17' m3. 2013 cc r-line. 10%

[Verdi]

You don't know for sure until you sell though. Also, many will only count on the monthly payments and "forget" about big deposits and first installments. They will also "forget" insurance costs, fuel, service costs, tires...

[Art__Vandelay]

Originally Posted by Verdi

You don't know for sure until you sell though. Also, many will only count on the monthly payments and "forget" about big deposits and first installments. They will also "forget" insurance costs, fuel, service costs, tires...

Of course. I don't know how it is in the US but here in Switzerland there's almost no way leasing is "better" than buying (different story if you have an own company and you can save taxes). Not talking about opportunity costs, such as stock market etc., because not everybody is interested in such investments.

[RobC2]

What's next? Everybody post their last 10 tax returns, statement of assets, schedule of debt, etc...?

[Axius]

70%, live at home with mum in the basement, so no other bills other than the car and motorcycle.

[Rat3d ///M]

Who cares? Personal questions about ones financial situation have no bearing on anything and don't belong on the internet. I guess if people are willing to answer the question then that's on them but I cringe when I read someone divulge personal information about their finances. Have some tact, people. Even if you make 7 figured a year, talking about your personal financial situation is one of the most tasteless things you can do no matter how well, or bad off you are.

[Mr Tonka]

Payment is $1352 / month. As a percentage of 2016 income, 12 months of payments is .29%

Couldn't let the post above kill the thread.

[David70]

Originally Posted by SakhirM4

0% - both my cars are paid for.

Same except wife and I have three cars total.

Originally Posted by ///M-er-gized

You still paid a % of gross salary, savings, or net wealth from investments.

Only difference is that you made 1 big payment instead of 36 or 48.

So if you own your car for 6 years and paid $75,000 in cash, you can do the math to determine % paid.

Sorry, that wasn't the question, I am currently paying 0% of my income on car payments.

So what percentage of your income is spent on car payments?

[Axius]

0% now.

[Ian1973]

about 10%

[aozer]

Less than 10% of biweekly paycheck