[Xtabi]

1.6% including my wife's salary.

3.06% with salary only.

That is gross salary income through employers. Not including investment income.

We both max out our employee provided retirement and dump 8% into ESPP. Too lazy to give you the finer details in order to figure out the percentage based on net income. Too many things to back out and would need to pull up a paystub. The percentages will be a lot higher though. Sorry too lazy for all of that!

[jmg]

Originally Posted by SakhirM4

0% - both my cars are paid for.

livin' the dream

[Who's on first]

Very private question. But wouldn't it be better to evaluate it this way, since payments are monthly?

Payment divided by monthly net income.

Example:
Payment = $880
Net (Bring Home) Monthly = $5750

$880/$5750= 15%

Or am I completely wrong, and that's how some examples already given are already doing it?

If so... like another said... why are they driving BMW's, and financing them?

[///M-er-gized]

I'm at exactly 6% of my gross salary. That doesn't include investment income. That's for both my car and my wife's car.

EDIT: This doesn't really tell the whole story because it doesn't take into account my net worth. Another way to look at it is the total cost of your cars vs what your net worth is.

[jmg]

Originally Posted by pheerix

Haha guess I should be more specific. I'm more interested in people leasing. Excluding the initial MSDs and "reasonable" down payment, what is the percentage of your post-tax (take home) income is your monthly payment including tax. Exclude insurance and gas expenses. Thanks.

On the lease, around 5-6% of take home pay not including my wife's salary. I feel comfortable thinking that only 1 day of take-home salary is dedicated to my car, which I put higher on the list of priorities than the average person. Being on an enthusiast forum, I think most people are of the same mindset; we are "car people".

[skalberti]

4-5% net, purchase only. I never lease. Finance for 3 years and pay it off in 1 year.

[///M-er-gized]

Originally Posted by SakhirM4

0% - both my cars are paid for.

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.

[M4Now!]

<3% of gross hh income

Cheers

[Desborough]

Originally Posted by skalberti

4-5% net, purchase only. I never lease. Finance for 3 years and pay it off in 1 year.

I work similar to you. All purchased no leases. Finance 4-5 years but must be paid off in 2 years or I feel like I shouldn't have it because I can't afford it. I finance for smaller payments just in case I ever had an emergency but double and triple pay sometimes monthly to make it go away ASAP. I hate owing anyone money let alone paying interest eats me alive

[Gibson6594]

Originally Posted by Desborough

I work similar to you. All purchased no leases. Finance 4-5 years but must be paid off in 2 years or I feel like I shouldn't have it because I can't afford it. I finance for smaller payments just in case I ever had an emergency but double and triple pay sometimes monthly to make it go away ASAP. I hate owing anyone money let alone paying interest eats me alive

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.

[RACEM4TE]

Paid cash for the S63 I currently have and the 675LT and 17 raptor. Though the S63 is being replaced by my LCI M3

[Desborough]

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 do see what you are saying about that. I'm not a stock market guy. I buy investment property I'm a contractor so I don't play the market. I'm old school to me paid off is paid off I own it period you never know what's going to happen. My home is paid off, my properties are paid off, my cars all paid off minus the M3, no credit card debt. I just like it all in the black. Debt free is debt free to me anyway you slice it. I do understand your logic on the interest rates but since I pay off quickly the interest difference is minimal. I need all my cash free and ready to jump on an investment property when it comes along I make an immediate cash deal. Cash is king to me

[Bonzer103]

O%. Paid for...

[JibSTir13]

How many real estate people in here? I also work in the field of real estate, which is why I ask.

[Draper]

A little under 8, but it was cold out that night.

Wait, what was the question?

[mpizutti]

120% i take out payday loans every month...but hey its worth it right?? BTW can you drive a stick shift with broken knees?

[gatorfast]

0% for me since I always pay cash for my cars, houses, yachts, and helicopters. Anyone who leases or takes out a loan is poor imo.

[DS_BMW]

lol everyone will be lying in this thread.

[Jaymax85]

Originally Posted by gatorfast

0% for me since I always pay cash for my cars, houses, yachts, and helicopters. Anyone who leases or takes out a loan is poor imo.

Not quite.. or they are have investments gaining more than a 2-3 percent annual rate of return

[Flacht3]

Originally Posted by CosmosMpower

Assuming 0% down and a 80k MSRP M4, you make 460K a year if a 1150 dollar payment is 3% of your gross income. Why are you driving a M4? And better yet why are you making payments for 72 months on it? WTF?

I appreciate you doing the math. Math is fun. This whole thread makes 0 sense because as you've proven you'd need to know the sales price, downpayment, etc. and none of this is going to be apples to apples unless the OP really wants to dig in. I'll still bite though:

1// Bought CPO with 4k miles on the car. I only put 2k-3k miles a year on my cars so buying new never sits well with me. I paid low 70s for the car a year ago.

2// Down payment was $20k. Why $20k? Because that was the value of my trade-in and I always just roll my trade-in into the next car. Might change with the M4 but it's simply been my habit thus far.

3// Why 72 months? Because money is cheap right now. Was even cheaper a year ago. At interest rates this low you'd be crazy not to take advantage since money is better put elsewhere and investments will far outweigh the % interest on that car loan. Maybe that doesn't matter to everyone but that's my personal answer to your question of why 72 months.

4// No I don't make $460k. The numbers above obviously change the equation a bit. But even if I did make $460k I probably wouldn't go far beyond the $80k-$100k range. I have a mortgage, among other things, and simply like putting my money elsewhere. I also know plenty of people that make above that $460k figure and drive Camrys .

[Flacht3]

Originally Posted by HELLOimJ

Not quite.. or they are have investments gaining more than a 2-3 percent annual rate of return

This.

[SD ///M4]

Originally Posted by mpizutti

120% i take out payday loans every month...but hey its worth it right?? BTW can you drive a stick shift with broken knees?

Originally Posted by gatorfast

0% for me since I always pay cash for my cars, houses, yachts, and helicopters. Anyone who leases or takes out a loan is poor imo.

Originally Posted by DS_BMW

lol everyone will be lying in this thread.

I stole mine so the OP's question makes no sense to me. I hope they can't track me from this post.