time2roll wrote:
10%?? So a person making $50,000 should buy a $5,000 vehicle? Need to be making close to a million to get a new top line truck? Wow is that guru out of touch.
Or is that the payment? guru recommends payments?
I recommend the vehicle price should be less than 50% of your annual income.
The recommendation I read was to spend no more than 10% of your annual income on the vehicle purchase price. So someone making $120k per year would look for a $12k vehicle. (so they would buy a used vehicle most likely if they were going to follow his advice) The thing about it is if you’re building up a higher net worth by saving money you can afford a 50k vehicle when you have a net worth of $1 million if you spend 5% of net worth. It’s probably not bad advice .... the problem is most people aren’t willing to save and wait.
