What income level/net worth do you need to be able to afford supercars?
#1
Rookie
Thread Starter
Join Date: May 2009
Location: TX
Posts: 83
Likes: 0
Received 0 Likes
on
0 Posts
What income level/net worth do you need to be able to afford supercars?
I think most of us dream of owning a supercar someday (ferrari, lambo, audi R8 can fall into this category as well).
For something like, say, the v10 audi R8 (~$160,000 OTD let's say), how much do you need to make (income) and what should your LIQUID net worth be (primary residence does not count) to be able to afford such a car?
Is there some rule of thumb like "the car's price should not exceed x times your income"
Obviously I suppose age will also matter. If you make x income and have y net worth at age 30 versus the same income/net worth at age 50 (~15 or so years to save up for retirement only) it's obviously important to take that into account, so let's say you want to get this car by the age of 50.
At 50 years old what income/liquid net worth would it take to purchase a $160,000 vehicle like an audi R8 (or maybe the lower end ferrari?)
For something like, say, the v10 audi R8 (~$160,000 OTD let's say), how much do you need to make (income) and what should your LIQUID net worth be (primary residence does not count) to be able to afford such a car?
Is there some rule of thumb like "the car's price should not exceed x times your income"
Obviously I suppose age will also matter. If you make x income and have y net worth at age 30 versus the same income/net worth at age 50 (~15 or so years to save up for retirement only) it's obviously important to take that into account, so let's say you want to get this car by the age of 50.
At 50 years old what income/liquid net worth would it take to purchase a $160,000 vehicle like an audi R8 (or maybe the lower end ferrari?)
#3
Rookie
Thread Starter
Join Date: May 2009
Location: TX
Posts: 83
Likes: 0
Received 0 Likes
on
0 Posts
Eh I'm not so sure about that.
To be honest, my motivation for creating this thread was watching this one clip of suze orman's "can i afford it?" where a man calls in to ask if he can afford a corvette ZR1
http://www.youtube.com/watch?v=9_0imeVpcbg
You can watch the video but the guy is 45 years old, takes home $72,000 / year. He owns his home outright, he has $150,000 in liquid savings and $90,000 in retirement (so his liquid net worth is $240,000)
Even with $240,000 in liquid cash suze orman says he's crazy to think he can afford a $120,000 car.
So I guess the question is - does that guy have enough for the ZR1 (maybe suze is just being overly conservative), or do people agree with suze's assessment?
And, if you do agree with her assessment, then how much is enough? What does that guy need to be able to afford that ZR1 (well let's go back to the supercar discussion where we're talking $160,000 audi r8, but the prices are sort of similar I suppose)
To be honest, my motivation for creating this thread was watching this one clip of suze orman's "can i afford it?" where a man calls in to ask if he can afford a corvette ZR1
http://www.youtube.com/watch?v=9_0imeVpcbg
You can watch the video but the guy is 45 years old, takes home $72,000 / year. He owns his home outright, he has $150,000 in liquid savings and $90,000 in retirement (so his liquid net worth is $240,000)
Even with $240,000 in liquid cash suze orman says he's crazy to think he can afford a $120,000 car.
So I guess the question is - does that guy have enough for the ZR1 (maybe suze is just being overly conservative), or do people agree with suze's assessment?
And, if you do agree with her assessment, then how much is enough? What does that guy need to be able to afford that ZR1 (well let's go back to the supercar discussion where we're talking $160,000 audi r8, but the prices are sort of similar I suppose)
Last edited by isFiend; 07-28-09 at 01:38 PM.
#4
-0----0-
iTrader: (4)
It really depends on the amount of debt you want and how much you like eating ramen
I just jumped onto a bank website and used their payment calculator. They won't allow for anything above $125k so lets assume you have a big down payment
$125,000 7.34% 48 months $3,013.04
$125,000 7.34% 60 months $2,495.25
$125,000 7.89% 72 months $2,184.95
Assuming a 40% state and federal combined tax rate you could "afford" it at ~50k a year. Of course that doesn't include essentials like living expenses or even service for the car.
Personally, I wouldn't consider buying one new unless I was making $150k+ a year and even then that would be stretching it.
I just jumped onto a bank website and used their payment calculator. They won't allow for anything above $125k so lets assume you have a big down payment
$125,000 7.34% 48 months $3,013.04
$125,000 7.34% 60 months $2,495.25
$125,000 7.89% 72 months $2,184.95
Assuming a 40% state and federal combined tax rate you could "afford" it at ~50k a year. Of course that doesn't include essentials like living expenses or even service for the car.
Personally, I wouldn't consider buying one new unless I was making $150k+ a year and even then that would be stretching it.
#7
Lexus Fanatic
Exactly. Around here it usually involves a stock sale with a profit that is 2x the value of the car, so that you have more than enough money left over to cover the taxes.
Yes, cash sale.
Yes, cash sale.
Last edited by IS-SV; 07-28-09 at 02:17 PM.
Trending Topics
#9
Lexus Test Driver
iTrader: (2)
unless you're very well off or completely wealthy, never buy a brand new car unless it is affordable to your income. If you have to buy cars that are 70k and over then you'll have to consider barely used to save some money off of that depreciation. And you can save...a lot!
#10
Super Moderator
Depends if you are buying a new or used supercar.
I see some very high end vehicles in my own neighborhood parked in houses similar to what I grew up in (under $500K houses (2009 prices) or even less).
In Mexico City, I knew people in my own apartment building that had some very rare high end vehicles, but lived in an apartment that perhaps only cost $500 to $1000 USD more per month than the one I was living in, and I am by no means wealthy.
I see some very high end vehicles in my own neighborhood parked in houses similar to what I grew up in (under $500K houses (2009 prices) or even less).
In Mexico City, I knew people in my own apartment building that had some very rare high end vehicles, but lived in an apartment that perhaps only cost $500 to $1000 USD more per month than the one I was living in, and I am by no means wealthy.