[MTB_Rob_NC]

I didn't read this whole thread but....


Your monthly car payment should not exceed 18% (this is an industry figure) of your gross monthly pay. Above that % and you enter into a much higher chance of defaulting on your payments.

 

[jacksonpt]

It depends on how long you plan on keeping the car. I'd pay a lot more for a car that I thought I'd keep for 10 years than I would for a car I'd only keep for 3.

 

[mogulskr]

I didn't read this whole thread but....


Your monthly car payment should not exceed 18% (this is an industry figure) of your gross monthly pay. Above that % and you enter into a much higher chance of defaulting on your payments.

This seems really high to me, but you are the one in the industry. I think in another thread mortgage payments were 41%. That's 60% of my gross salary.

 

[bean]

18% of gross would be a seriously high car payment. I can certainly see why the chance of defaulting increases.

 

[Serial Midget]

I traded my 2005 Ford Ranger in on a 2007 Subaru that was 21,700. Since the Ford was paid for so my year note is just over $11,000.00 at $230.00 a month. I'd like to pay it off ass soon as possible so I'm putting down $500.00 a month. Thats around 7% pre tax.

Spending wads of cash on depreciating assets is not wise...

 

[SilentJ]

18% of gross would be a seriously high car payment. I can certainly see why the chance of defaulting increases.

I stretched myself to buy my truck at 17% of gross and it sucked...I'm down to ~8ish% now (many a raise since then) and it still sucks.

Edit: Yeah...I made the rookie "holy sh!t, I have money now!" mistake.

Edit 2: Doubly so since I bought a GM..

Doesn't quite suck as hard as the mortgage payment, but at least with that it's doing something for me rather than just depreciating like a two bit whore.