mbed2

I was wondering what the annual income is for people that usually buy a 2004 TL? Can one afford one with an income of about 45k?

adam209

i don't work but i think that might be pressing it. depends on how much you want it i guess.

Tripp11

Just run yourself a simple monthly budget. Take your net wages for a month and then start deducting all of your fixed monthly expenses and then start estimating your variable monthly expenses. This is the best way to determine if you can afford this car.

Vffr1

There are way too may factors to ask that questions...

1. How important is savings?
2. How important is retirement?
3. Do you live at home?
4. Are you married?
5. Do you have kids
6. What does you dept ratio look like?
7. Hows your credti scores?
8. Do you own your own home?
9. How much equity is in your home?
10. What is your overall net worth?


I could go on and on with this one...

I think you should take a wealth test, send me an email: Vffr1@sbcglobal.net and I have a blank you can score yourself with.

Mike Smeezy,

Euliscool

i think 45K is plenty, especially if u live by yourself and single with no kids... unless u have major debt and a lot of fixed expenses that normal people dont.

JonDeutsch

mbed,

It's not about how much you make or how much the car is.

It matters what your budget is, and would the way you pay for the car fit your budget.

For instance, if you have a trade-in worth $13k, that makes your financing $22k, which probably equals $4xx/month if you buy it. If you put down $13k and lease it, it'll be much less expensive per month.

You have to figure out how much money you can afford to spend on a car each month, and see how buying a TL can fit within that margin.

When I made $45k/year, I went and bought an Acura Integra GS: $20k, with a $4k trade-in. So, I financed $16k, but at the time, I had rent of $600, and no mortgage. I don't like to spend at my limit because I like to have savings and like to buy other things like Home Theater gear. I know others who spent more on a car than I did because they wanted to spend all of their money on their car.

Different strokes for different folks.

Jon

DNA

Looking at your profile, I'm really envious of you. When I was a CS student a long time ago I had a negative income. Where is this school that pays you $45K to major in CS?

wawawa

What matter is of money that you make, how much of it you manage to keep for yourself.

I know people who make around $90k, and are always short of money.

MONEY SAVED IS A TAX FREE INCOME YOU EARNED.

rets

Hey, new guys,

I bet you will love this thread...

Use SEARCH feature, and input "occupation" in searching 3rd generation TL... you will get an amazing thread... CHECK IT OUT...



Sorry, if anyone here doesn't want that thread to bring it up...







Update: Ha, ppl like that occupation/salary thread...

vtechbrain

A simple rule of thumb is you shouldn't pay more than 10 percent of your monthly income on a car payment. A lot of people do, never the less. Ergo, for a 500 payment you sould at least gross 5k a month.

Hoffer

Is the monthly income figure before or after tax? I know in mortgage calculations, they always figure before tax.

I'm putting next to nothing down on my TL and am getting a 60 month loan. With this, my monthly payment is 11% of my monthly salary. Do I qualify?

Ken1997TL

I'm enjoying a nice car while I can in my young age. My money at this time goes towards school, food and my car in that order.

Also... I plan on keeping my car for a LONG time.

Its all about restraint and planning.

Bartman_RENAMED

Since you live in Tacoma, I'm guessing no.

Sorry, had to do it. If I were in your situation, I would lease. You can find a decent payment based on how long you are willing to lease for. If you lease, you can drive a new hybrid TL in 3 years.

vtechbrain

Not talking as a bank but as an investor. Banks will give you a loan way over that. An if your curious that should be net income. Your house should not be over 35% of your net.

jwaters943

I guess I shouldn't be spending more than $375 per month on a car payment (based on 10% of net income). I'm currently paying $500


My advice regarding personal finances....

-Never charge more on your credit cards than you can payoff completely within 30 days
-Save at least 15-20% of your monthly income ( Example: 10% 401k, 5% IRAs and 5% personal saving account)
-Try to have enough in liquid assets to cover you for 4-6 months should you become unemployed
-USE COMMON SENSE (this is hard for some people)

With that said, a car to me is more than transportation (it is a hobby). I enjoy driving a nice car. In addition, we all have unique circumstances that allow us to spend varying amounts of our income on a car. I for instance pay very little for auto insurance, I do not drink/smoke or take extravagant vacations and therefore rationalize spending a little extra on a car payment. I think 10% of your net income is EXTREMELY conservative, but great if you can manage it. I think 15-20% is fine for *most* people.

Ken1997TL

I agree with Jwaters. I live cheap for the most part and I "splurge" on a few key things. I live in a NICE apartment, in a NICE neighborhood and I have a NICE car. I have a nice computer. That is it!

I am CHEAP CHEAP CHEAP

JohnDoe2

As a fiscal conservative , I would say that if you have $35,000 in cash, you can afford a TL. Otherwise, no.

pearl04

Go for it!

NOX 3.2

Money you save is what is left over after Uncle Sam ripped you off!

not FREE by any means, at least for me,
I work very hard for my money (and so many of you guys here)

According to Acura Sales Marking survey (I saw at the dealership) the target population for the TL is people who make around $110k/ year (which is probably wrong for many here)

It all depends on how much downpayment you give..
with no dwn-payment, you could be looking for a monthly payment of around $400 (lease) to $750 a month depending on many of the above factors and interest rates, etc.

do your numbers, and save a little in case you need to pay for other things...in life.

automophile

The RULE of thumb is:

TOTAL car expense less than 15% of your gross income

Rent or Mortgage - 30% of your gross income.

If you are spending more than this, you are in over your head, and will get yourself deeper in debt, or will not have any savings for your later retirement - either way is NOT GOOD.

Be Careful and be REALISTIC.

svtmike

If you have to ask.....

Seriously, when my income was around that level I was buying cars for ~17k tops.

Mike

VTEC=happiness

Not to be argumentative, but I think that $400/mo. with zero down is not at all achieveable for a lease. At least $500 if it is truly zero down.

vothsc

I also like a nice car and will spend more for it. My co workers think I'm nuts sometimes. I am single and live in a modest house that is plenty good enough. I consider a new car every two or three years my only vice. Others spend thousands on vacations or new homes and don't think twice about it. I also prefer to save up front for a car and pay cash for it when I buy it rather than take a loan - that way I'm up front rather than playing catchup. I figure I might as well enjoy my earnings while I can (within reason) rather than saving everything so that a nusrsing home can grab it when I get old.

Hoffer

The local Acura dealership had an ad in the paper for a lease. It was $400/month, but you had to put almost $4,000 down and it was for 48 months. That was for a non-Navi TL also.

I talked them down $1,200. So, I guess it would be closer to $3,000 down for the same monthly payment.

I'm doing a 60 month loan for about $635/month with $2,000 down.

NOX 3.2

what can I say? all figures are very rough... it's not an exact science until you got all the details...

But I've seen figures very low (probably with dn pmt)

NOX 3.2

AMEN

jwaters943

Are you sure those aren't household income figures? I remember the last TL (which started at around $28k) was to have an average buyer of about 45 years old and w/ an average household income of $90k according to Acura.

I know if I made $110k per year I wouldn't even look at the TL. Maybe the upcoming new RL, GS400 or Infiniti M45, but most likely the Mercedes E Class or BMW 5 Series. :p

neuronbob

I make over that and I guess I'm pretty cheap, because the TL is still a great deal for what you get even at my income level. I didn't even bother to look at any of those luxocruisers except (VERY briefly) the 5 series. If not the TL, I would've bought a 330i or ix.

rets

You got the same mind as my uncle doctor, who is willing to have Accord because he even strongly believe it is just a transportation vehicle. But I'm sure he has earned times more $$$ than most of basic NBA players do annually.

In his neighborhood, his car is worse than the butlers' of his neighbors.

He prefers to spending it in house, living quality/style, cruising, investment, and children's education.

Recently, he seems to like my 04TL... (he always blames me spending too much money on cars...)

vtechbrain

Your uncle is a smart cookie a car is an expendable, therefore, even our wonderful TL is sort of a stupid extravagance. For my part I'm a hardcore enthusiast as my many speeding tickest will attest to so the TL is just right for my frugal ways. And you're right most specialists make more than NBA starters and some make more than NBA regulars to boot. Thats why I strongly ecourage kids to study more and play less (but still play) it pays a hell of a lot more in the long run! Another interesting fact is that most MD's were not the brightest guys and girls in the class, they were usually from the good but not stellar grades group.

doejohn

http://moneycentral.msn.com/content/...car/P37270.asp


[ Am I ready for a newer car?
Your first step is to do nothing except write a check to yourself in the amount you’re thinking you can afford every month. Put aside a car payment every month for three months (long enough for at least one of life’s little emergencies to crop up).

To pass the time, make three phone calls: one to your bank, to find out what kind of rates they charge on loans to people with your credit history; one to your insurer, to ask the rates for comprehensive insurance on a model you think you’d like to buy; and one to your local DMV, to see what registration and licensing would cost.

At the end of three months, ask yourself these questions:
How much did it hurt? If you skimped at all on other bills or shorted the amount of the payment, you’re not ready.

Would I have enough left over to pay for insurance and licensing fees each year?

Would I pay this much every month for the car that’s in my driveway already? Sooner or later, every new car becomes an old car, and you’ll feel about the next car just the way you do about your old clunker.

Would I rather have the cash? Our typical car payment, $350, adds up to more than $1,000 in just three short months. Perhaps you’d prefer to get a tan in Mexico and limp along with ol’ Betsy another year.

Could I continue to save for another year and simply pay cash? Five grand would buy any of hundreds of reliable used models. Save for two years and you’re in new-car territory, if your old car will fetch a few thousand.
If the craving for a shinier car hasn’t passed in three months, at least you begin the shopping process with a few months’ worth of car payments and a more realistic idea of the hit your wallet will take. ]

VQ35DE

As far as leasing goes, have any of you guys tried www.leasecompare.com to do a lease analysis???