Buying a new car (LONG)

is Dh's new obsession.

Our background:

recently just took out a 150k mortgage on our house so we now have a mortgage that we previously did not. With this mortgage we paid off all our CC and the only monthly payment we have debt wise is mortgage + student loan ( around $1600 total) plus all your other household expenses. There is definitely room to cut back if we wanted to but for the most part we live within our means. After all is said and done (all living expenses) we probably have 45% left of our take home pay.

I have a comfortable, steady income and DH just recently started working for a consulting agency *almost* full time. He does most of his work from home.

We have a car that's paid off, but are looking to buy (DH does not want to lease) a new car. DH wants to buy an AUDI. Yes, you read that right. An AUDI. I'm not sure if it's the "poor kid" in me but I don't think we could afford it. I would love a "snazzy" car but I also don't want to get in over our heads.

We are a family of two now. But would like to start a family within the next few years.

I read on bankrate.com that your car payment shouldn't be more than 20% of your take home pay.

My question is, how much is your car payment a month and do you "feel" it big time financially?

Thanks if you got this far

Message edited 11/8/2009 9:30:55 AM.

Re: Buying a new car (LONG)

I think this is a hard question bc it really depends on your income.

I do not think a car payment should "burden" you let's say. But it is hard to say bc average for you might be different then average for me.

I would say go with the amount you are comfortable with. If the "snazzy" car is a little more and you feel you can swing it every month without having to give up or do without something important go for it

It is all about balance, ya know? DH and I have a nice, new car we love. But we are a one car family bc he uses public transportation to work. We also didnt go CRAZY we got a car that was a little more pricey but still well within our means.

I hope this made sense!

Re: Buying a new car (LONG)

Re: Buying a new car (LONG)

I think really it comes down to what your personal priorities are.

I have a 2003 Ford Focus that is paid off.

DH has been bugging me to buy something new, like a minivan, since we have our DS now and my car is teeny-tiny. We both do okay financially, and are able to save a decent amount of money each month. I was even told I will most likely be getting about a $7K raise come January.

I still personally don't feel ready to go out and buy a new car just yet though. I would much rather see that money go into savings, then to a car payment. I am more of the mindset that I will buy a new car when we actually NEED a new car, and not just because one of us in particular "wants" a new one.

I also only spend around $25.00-$30.00 a week on gas and have to commute all around the town with my job. I am sure that amount will increase significantly with a larger vehicle.

Re: Buying a new car (LONG)

We are in the same discussions right now. My current car payment is probably like 12% of MY take home (just to distinguish from OUR).

To answer your question, we are comfortable with that car payment but we don't have children. I'm debating this right now. I'm afraid of keeping a similar car payment, having a child(ren) and then be tight in finances. Then, on the other hand, I feel I have a certain image I have to portray with my career and my clients so I need a fancy pants car.

Tomorrow I plan on getting insurance quotes on the cars we are shopping. If my insurance is going to go through the roof with any one of them, that will also help make my decision. BTW, the Audi is on our list and I personally think it's a great car (just in case you wanted my 2 cents )

Re: Buying a new car (LONG)

i agree that it depends on income. I always try to stay below 400...

my 09 acura tsx is $340 per month! You can get great deals now!

Re: Buying a new car (LONG)

also, depending on the Audi (A4) you should be able to lease under 400 per month, I looked at the A4 when i got my TSX

Re: Buying a new car (LONG)

Posted by mrskparetta

also, depending on the Audi (A4) you should be able to lease under 400 per month, I looked at the A4 when i got my TSX

Re: Buying a new car (LONG)

Posted by MrsYank

Posted by mrskparetta

also, depending on the Audi (A4) you should be able to lease under 400 per month, I looked at the A4 when i got my TSX

He wants the Q5

Re: Buying a new car (LONG)

Love the Q5

Re: Buying a new car (LONG)

You might suggest he get a preowned Audi. It would save you both a considerable amount - the amount of value you lose immediately as you drive off the dealer's lot in a new car.

I have a Mercedez E320 that I got which had been a dealer's demo. It looked brand new, but I got it at a fair used price. It's paid off now, but when we get another car, I will definitely look for a used one with very low milage.
My mom traded in her car last year and whoever got it got the cream puff of all time. It was three years old with just 5000 miles on it and looked immaculate and new.

Re: Buying a new car (LONG)

I think it also depends on how important a car is to you.....

Each person is different and we all have our spurlges.

You can easily get a cheap car that will get you where you need to be, for some this is fine and then I would recommend that it not be a big % of income. For others, they take a lot of pride and joy in the car and want something nicer and then maybe it is a higher %. KWIM

For me personally, for whatever reason I just don't care about cars. I just don't want something too old but don't need luxury. But for others, they would not be happy in this kind of car - they would prefer something more luxury...For me, I just use my money in other ways.

So I guess I am trying to say it is up to you and how much enjoyment you will get out of it and what you can comfortably afford to do. Look at what you will get vs. what you will have to give up in order to get it. That is the best way to see if it is the right amount for YOU to spend.

HTH