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      10-04-2019, 10:58 AM   #24
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Drives: 2018 M3 ZCP MPE
Join Date: Mar 2018
Location: Houston, TX

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Originally Posted by iqraceworks View Post
The problem is that the majority of the people financing very expensive vehicles for 7+ years..... barely make enough money to make the payments, and they sure don't have any money put away in the back, or in any investments.

People who are making $40k a year should not be financing $60k+ vehicles.....and it happens all the time.
This stuff blows me away. I don't know how anyone can do that and not be up all night, every night due to crippling anxiety

Seems like a good general rule is don't buy a car that's worth more than 30-50% of your salary. That way if something shits the bed and you need to get out of the car for financial reasons, it helps to minimize potential negative equity.

I've always done 60 month loans, with a down payment/trade-in, and almost never buy new. I try to find either a 1 year old car or a dealer demo car. If the interest rates suck (even with good credit) I'll typically pay a little extra principal each month to effectively lower the interest rate a bit too. Cars are an awful financial decision no matter what you do, but that's the only way I can sensibly enjoy them every few years.
2018 M3 ZCP MPE - Current | 2017 340i MPPSK BM3 - Sold | 2014 328i - Sold