View Poll Results: Minimum Net Worth
$500,000 - 1,000,000
12
30.00%
$1,000,000 - 2,000,000
10
25.00%
$2,000,000 - 3,000,000
9
22.50%
$3,000,000 - 4,000,000
2
5.00%
Over $4,000,000
7
17.50%
Voters: 40. You may not vote on this poll
What do you think the minimum net worth of a person should be to own a 100-150k car?
01-25-10 | 09:48 PM
#16
Lexus Champion
Joined: Feb 2008
Posts: 2,448
Likes: 2
From: Japan
Given the higher relative depreciation of cars in this price range, my metric is can you afford to buy it outright in cash without going into debt or impacting your other essential savings and investments? ...and if so, do you intend to keep it long enough to ride out its depreciation curve and maximize its value over the long term? (And is it high enough quality and can you afford to maintain it?)
My current car is in the $100,000 to $150,000 price range, but I would never have bought it if I could not have afforded to pay for it outright in cash. I shudder at the thought of drivers who take out huge loans plus interest, or successive leases that have to taken out every 3 or 4 years for expensive cars that depreciate quickly.
Does this make sense? Depends on where you are in life and what your priorities are. Having now hit my fifties, I take a holistic "rest of my lifespan" perspective and have learnt the discipline to be happy with what I have. I now prefer to buy the car I really want, max out its warranty, do less than 9000 miles/year, (I spend more time on my bike than in my car) and run it for 10 years or more. Just 3 or 4 cars for the rest of my life should take me to 90.. :-)
Chris
My current car is in the $100,000 to $150,000 price range, but I would never have bought it if I could not have afforded to pay for it outright in cash. I shudder at the thought of drivers who take out huge loans plus interest, or successive leases that have to taken out every 3 or 4 years for expensive cars that depreciate quickly.
Does this make sense? Depends on where you are in life and what your priorities are. Having now hit my fifties, I take a holistic "rest of my lifespan" perspective and have learnt the discipline to be happy with what I have. I now prefer to buy the car I really want, max out its warranty, do less than 9000 miles/year, (I spend more time on my bike than in my car) and run it for 10 years or more. Just 3 or 4 cars for the rest of my life should take me to 90.. :-)
Chris
01-26-10 | 01:05 PM
#23
Lexus Fanatic
Joined: Sep 2007
Posts: 22,608
Likes: 102
From: Waiting for next track day
many of us on this forum can afford cars that are far more expensive than what we have currently but have other priorities like properties, house, businesses, children, lots of vacations, etc.
01-26-10 | 01:44 PM
#24
Rookie
Joined: Nov 2005
Posts: 98
Likes: 0
From: CA
I know someone (early 40s) who is a VP of his small environmental engineering firm with a 2005 SL600 (I think he paid $140k). He lives with his elderly mom (no home payments), no significant-others. I venture to guess he earns about $200k/year.
The only others I know who own $100k+ cars, earn over $400k/year. These folks are either lawyers or partners in consulting firms.
The only others I know who own $100k+ cars, earn over $400k/year. These folks are either lawyers or partners in consulting firms.
He may need that money, come retirement time.
01-26-10 | 06:00 PM
#27
Thread Starter
Lexus Test Driver
Joined: Dec 2005
Posts: 1,075
Likes: 0
From: CA
01-26-10 | 06:13 PM
#28
Instructor
Joined: Apr 2007
Posts: 1,130
Likes: 4
From: ca
Why would I lie? These aren't my cars they are my brother's, he does very well for himself he owns a private equity firm in Beverly hills. He is the rich one in the family not me
What do you want his address so you can verify that he actually owns his firm?
What do you want his address so you can verify that he actually owns his firm?
01-26-10 | 06:20 PM
#29
Lexus Test Driver
Joined: May 2006
Posts: 8,349
Likes: 0
From: QC/FRANCE
If someone driving a $150k car they should be at least making $300k-$450k a year. So their net worth would have to be above $4 million.
House (starting at) $1.5 million
Investments [not incl. real estate] (around) $1 million - $2 million
So thats around $2.5 million - $3.5 million. So the other $500k - $1.5 million could be on other things such as secondary residence or art or jewellery
Thats the way I see it, if someones driving a $150k car.
Only reason I sort of came to this conclusion, with some of these numbers... Seeing my neighbour has a LS600hL so thats around $150k CDN and they just sold their house for around $1.5 million CDN.
Plus from what I heard, you have to double or triple the value of your car to see the persons yearly income (or whatever people call it)
House (starting at) $1.5 million
Investments [not incl. real estate] (around) $1 million - $2 million
So thats around $2.5 million - $3.5 million. So the other $500k - $1.5 million could be on other things such as secondary residence or art or jewellery
Thats the way I see it, if someones driving a $150k car.
Only reason I sort of came to this conclusion, with some of these numbers... Seeing my neighbour has a LS600hL so thats around $150k CDN and they just sold their house for around $1.5 million CDN.
Plus from what I heard, you have to double or triple the value of your car to see the persons yearly income (or whatever people call it)
01-26-10 | 07:11 PM
#30
Lexus Champion
Joined: Apr 2008
Posts: 2,368
Likes: 1
From: Socal
My mother makes slightly less than 400k, but she drives a base model Toyota. She just grew up with values of appreciating the little things, since she started with nothing (bread and water were most of her meals since the money went oversees to help relatives)-all she did was study and work (farms, canneries, sewing factories) to pay for college. Your statement clearly describes her values in where money goes- other properties and child make up the bulk on it especially when shes paying off 5 college tuition and new properties for my siblings and I to live in comfortably.