What percentage of your salary goes to car payments?

rainyjewels · Jun 8th, 2008, 09:32 PM

Okay, having been in NYC forever, this is the first time I'm considering getting a car. I want to lease because I may be going to law school in a year or two, where I will not need a car. My question is, how should I go about determining how much I can allot to car payments? I heard 8-11% of your gross monthly salary, but wanted to get your thoughts because you're all so wise!!

Zophie · Jun 8th, 2008, 10:15 PM

I have never heard of a specific range, but I'd say mine is about in the range you mention. I think as long as you can afford it and have enough money left over to live comfortably it's fine. Just remember the cost of insurance, gas, parking, etc.

doreenjoy · Jun 8th, 2008, 11:08 PM

0%

I buy cars outright.

thenorthwood · Jun 8th, 2008, 11:53 PM

Mine is about 11% of my take home pay. But I'm trying to pay more than that to get it paid off earlier.

socalgem · Jun 9th, 2008, 12:03 AM

None, both of our vehicles are paid for. We finance cars for 6 months and then pay them off.

bnjj · Jun 9th, 2008, 12:07 AM

$0. It was approx. 6% of my gross pay.

elizat · Jun 9th, 2008, 07:43 AM

I am not sure exactly. I think about 6-8% of take home each month?

Sternchen · Jun 9th, 2008, 08:28 AM

0%

We pay cash for our cars

kbell · Jun 9th, 2008, 09:47 AM

Mine was about 15% of my net monthly but after next mo - no more payments - yay!

I also think it depends on your spending habits, lifestyle, and debt - and now gas is so expensive that has to be added in as well. I've always gone by my disposable income & only commit to what I can more than comfortably afford.

shoefan · Jun 9th, 2008, 12:54 PM

Quote:

Originally Posted by doreenjoy

0%

I buy cars outright.

Same here...

guccimamma · Jun 9th, 2008, 01:05 PM

paid both of ours off in the 1st year. gas is a killer though.

i am hanging onto our cars for as long as humanly possible, i have no desire to have a car payment for a long time.

LV Luvr · Jun 9th, 2008, 01:54 PM

$0. Ideally don't buy it if you don't have the cash is our philosophy. Leasing IMO is not right for everyone. So make sure you don't get stuck with a long lease. But I would say no more than 4-5%.

JenWV · Jun 9th, 2008, 02:06 PM

$0 paid with cash

lolitakali · Jun 9th, 2008, 02:47 PM

None.

fieldsinspring · Jun 9th, 2008, 03:25 PM

Wow I am really impressed with how many people say $0

I think though for a lot of people that is not always attainable, atleast not for certain cars or for a certain period of time. I will say we have had car payments that have been too high in the past and I would definitely suggest not having a payment IF you can. If you can't then I would look over all of your finances first and see what you can do and go less than that.. especially with the cost to maintain the car and the price of dang gas these days.

GL!

Jun 8th, 2008, 09:32 PM	#1
rainyjewels Member Joined: Nov 2006 Posts: 2,352	What percentage of your salary goes to car payments? Okay, having been in NYC forever, this is the first time I'm considering getting a car. I want to lease because I may be going to law school in a year or two, where I will not need a car. My question is, how should I go about determining how much I can allot to car payments? I heard 8-11% of your gross monthly salary, but wanted to get your thoughts because you're all so wise!! __________________ Currently Coveting - CL C'est Moi - CL bronze rolandos - CL burgundy eel altadamas - CL black patent wallis MJs

Jun 8th, 2008, 10:15 PM	#2
Zophie I <3 my Maltese! Joined: Feb 2007 Location: New Orleans, LA Posts: 6,593	I have never heard of a specific range, but I'd say mine is about in the range you mention. I think as long as you can afford it and have enough money left over to live comfortably it's fine. Just remember the cost of insurance, gas, parking, etc. __________________

Jun 8th, 2008, 11:08 PM	#3
doreenjoy Member Joined: Feb 2008 Posts: 440	0% I buy cars outright. __________________ I have everything I need. Wow.

Jun 9th, 2008, 12:03 AM	#5
socalgem Because I can... Joined: Apr 2007 Location: California Posts: 4,388	None, both of our vehicles are paid for. We finance cars for 6 months and then pay them off. Last edited by socalgem; Jun 9th, 2008 at 12:13 AM.

Jun 9th, 2008, 12:07 AM	#6
bnjj ♪ Jovi Junkie ♪ Joined: Apr 2007 Location: Bon Jovi Blvd. Posts: 3,609	$0. It was approx. 6% of my gross pay. __________________

Jun 8th, 2008, 11:53 PM	#4
thenorthwood music lover Joined: May 2008 Posts: 342	Mine is about 11% of my take home pay. But I'm trying to pay more than that to get it paid off earlier.

Jun 9th, 2008, 07:43 AM	#7
elizat Member Joined: Sep 2007 Posts: 3,659	I am not sure exactly. I think about 6-8% of take home each month?

Jun 9th, 2008, 08:28 AM	#8
Sternchen Member Joined: May 2006 Location: Beauty RAOK Posts: 10,395	0% We pay cash for our cars __________________

Jun 9th, 2008, 09:47 AM	#9
kbell Member Joined: Aug 2007 Location: MA Posts: 1,933	Mine was about 15% of my net monthly but after next mo - no more payments - yay! I also think it depends on your spending habits, lifestyle, and debt - and now gas is so expensive that has to be added in as well. I've always gone by my disposable income & only commit to what I can more than comfortably afford. __________________ Is it football season yet? All out ban in progress

Jun 9th, 2008, 01:05 PM	#11
guccimamma guccimamma Joined: Aug 2006 Posts: 2,673	paid both of ours off in the 1st year. gas is a killer though. i am hanging onto our cars for as long as humanly possible, i have no desire to have a car payment for a long time.

Jun 9th, 2008, 01:54 PM	#12
LV Luvr Member Joined: Nov 2006 Posts: 1,391	$0. Ideally don't buy it if you don't have the cash is our philosophy. Leasing IMO is not right for everyone. So make sure you don't get stuck with a long lease. But I would say no more than 4-5%. __________________ WISH LIST!!!! Azur Speedy 30 - Got it! LV Black Lurex Scarf - Got it! Vernis Sunset Boulevarde in Pomme - Got it! Chanel Lambskin Flap w/sh Monogram Pink Denim Shawl Monogram Eva Something Red Epi! Gucci Black Tote Keepall 55 Monogram Toilette Juicy Earrings - Got it! Manhattan GM Diamond Accent Ring Dior Hoop Earrings Chanel Sunnies Dream Bag(s): Chanel Jumbo White Flap w/GH or Black GST w/GH!

Jun 9th, 2008, 02:06 PM	#13
JenWV Member Joined: Jul 2006 Location: West Virginia Posts: 313	$0 paid with cash __________________

Jun 9th, 2008, 02:47 PM	#14
lolitakali Mira Joined: Feb 2007 Location: Maryland Posts: 1,714	None. __________________ *Best way to diet is to eat what you hate, not eat what you love.* *$$$$$ / GOLD = "my precious".* -ME to be a dragon hoarding gold-

Jun 9th, 2008, 03:25 PM	#15
fieldsinspring keepin' it real! :) Joined: Aug 2006 Location: Where the Sun Is! Posts: 6,078	Wow I am really impressed with how many people say $0 I think though for a lot of people that is not always attainable, atleast not for certain cars or for a certain period of time. I will say we have had car payments that have been too high in the past and I would definitely suggest not having a payment IF you can. If you can't then I would look over all of your finances first and see what you can do and go less than that.. especially with the cost to maintain the car and the price of dang gas these days. GL! __________________ Don't Give up what you want MOST for what you want NOW