What's your ratio of what you paid for your car : TC?

ViaSat / Eng knjpy
Oct 26, 2018 43 Comments

The accepted rule of thumb is between 10 - 50%. Mine's close to 20 but if I buy a new vehicle it will push it much higher.

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TOP 43 Comments
  • Intel / Eng RTL_
    Dnt buy new. Its a depreciating asset. You will save lot of money with pre owned
    Oct 26, 2018 3
    • Apple Tattoo-
      5.6’
      Oct 27, 2018
    • Amazon / Eng Chad🕶
      ^ foreigner @tat... here in America, it's 5'6
      Oct 27, 2018
    • Rockwell Collins cscY72
      You need a car throughout your lifetime in USA. In my view, buying a new car and using it for next 15 years/200k miles is a most efficient method.
      Oct 27, 2018
  • Bloomberg / Eng iVX372
    0. Cars are for suburbs and sub par cities.
    Oct 27, 2018 0
  • Amazon / Eng Prez Trump
    My new grad co-worker bought a GT3. So probably 120% for him.
    Oct 27, 2018 3
    • Salesforce 886
      That’s an appreciating asset. If he/she can actually find a way getting a brand new GT3, money ain’t a problem for him/her.
      Oct 27, 2018
    • Amazon / Eng Prez Trump
      5 year auto loan for him
      Oct 27, 2018
    • Yahoo / Eng TC or GTF0
      A brand new GT3 is not an appreciating asset. They will definitely depreciate around 30-40% at least. The only GT3 which is appreciating right now is the 997 4.0 GT3RS.

      GT2RS on the other hand is something that will appreciate since it’s so rare. People are already paying double sticker price for those.
      Nov 2, 2018
  • PACCAR / Eng stumper
    5.8 and 7.4% for the last couple.

    My rule of thumb is the absolute most one should spend is 1/3 of TC on a car and 3x TC on a house. Not that you should spend that much, just that you shouldn't spend any more than that. And that assumes a reasonably stable TC.
    Oct 27, 2018 1
    • House = 3 TC in silicon valley is only doable if you are L5 married to L5 at FAANG.
      Oct 27, 2018
  • Microsoft Ink8i
    28% - wanted to splurge on a sports car cuz it was my dream since a kid
    Oct 27, 2018 3
    • Bloomberg TghbeUG23
      What car?
      Oct 27, 2018
    • Expedia Ytdj51
      What car and don’t say Mazda Miata
      Oct 27, 2018
    • Microsoft Ink8i
      Slightly used 435i convertible
      Oct 27, 2018
  • Zillow Group InCa
    This is really financially irresponsible way of thinking. The key metric is to spend as little as you possibly can on your car, and still get the utility you need.
    Oct 27, 2018 1
    • Facebook supichai
      Yep this was my point two posts back
      Oct 27, 2018
  • Facebook supichai
    % of TC on Car is a stupid way to think of think this spending.
    Oct 27, 2018 2
    • Microsoft / Other blUKh
      A better measure would be % of monthly salary (after tax)
      Oct 27, 2018
    • Apple le_moolah
      Why is it stupid?
      Oct 27, 2018
  • Amazon BFIh02
    I'll be the outlier. I was a lunatic who did ~80%.

    That said, I was under the false impression/expectation that my TC (bonus + equity) was going to double the numbers in the offer letter. My comp didn't climb like I expected (was not in a big 4 firm at the time).

    Luckily was able to refi it down from ~7.4% 🤯 to 1.9% after a year of throwing money into the fire. Paid it off a few years later. Lesson(S) learned!

    If I were to buy another car, I'd try to stay between 10-20% of TC if attractive interest rates present themselves or simply save up and pay cash.
    Oct 27, 2018 2
    • Glassdoor / Mktg 😝m😗h
      What did you buy?
      Oct 27, 2018
    • Facebook tGTv63
      Wow 7.4%. that's super high
      Oct 27, 2018
  • Amazon carlo
    0.5% yolo
    Nov 12, 2018 0
  • Google
    p7v88à

    Google

    PRE
    Microsoft
    p7v88àmore
    When I bought my used car in college: about 200%. If I spent the same amount now, about 6%.
    Oct 27, 2018 0
  • Amazon Dumps
    30%
    Oct 27, 2018 0
  • Amazon / Eng DingDong22
    9%
    Oct 26, 2018 0
  • Microsoft / Other blUKh
    32% here. Not sure about the 10% rule.
    Oct 27, 2018 1
    • Microsoft / Other blUKh
      I've put down 35% down payment, 4 year loan and my monthly payment was less then 8% of my salary.
      Oct 27, 2018
  • Zillow Group InCa
    There are plenty of houses for around 3xTC if you are willing to live in “less desirable” hoods.
    Oct 27, 2018 0
  • New / Eng AussieSWE
    Bought mine used 5 years ago. So, about 10% of my TC. TC is $350k. I have no plans to buy another car for many years.
    Oct 27, 2018 0
  • eBay HireMe?
    It’s worth 1.5% of my tc now. When I bought it, it was 5% and I paid cash. 300 tc (not at eBay)
    Oct 27, 2018 0
  • Zillow Group InCa
    4.7%
    Oct 27, 2018 0
  • Apple lzlK65
    10% and we also have a 2nd vehicle, was about 7% at the time.
    Oct 27, 2018 0
  • Cisco Hnay279
    2.6%
    Oct 27, 2018 0
  • Facebook / Mgmt RonWalt
    4%
    Oct 27, 2018 0