bitkahuna

iTrader: (20)

With the real estate there, the taxes, the commensurate salaries, car payments or costs are just not as big a factor as in a lot of other places. That's to me why there's so many nice cars there. There's a ton of nice cars in FL too for different reasons... tons of retirees here and people with wealth who moved here to escape high taxes. But real estate in FL is dirt cheap in comparison with CA

AJT123

IMO a million net worth isn't enough to justify comfortably buying $150,000 car, not the wisest decision to use 15% of your assets on a car. I do agree a million isn't what it used to be.

TangoRed

Just to add some color here, the average Mercedes S-class buyer has an average income of $375,000 per year. I would say the chances of the average $150k car buyer having a net worth far higher than a million is very high.

EZZ

So about the average silicon valley principal engineering salary Lots of nice cars in the Bay...lol

SW17LS

Depends on how much money you make. As was said before, people who buy cars like this have incomes $350k+ often. Even if your net worth isn't $1M+, the payment is more than comfortable on $30k+ a month in income.

AJT123

Subract half for taxes, so 15k. What would an actual car payment be on $150K? Leasing is wayyy cheaper. I just plugged it in, roughly 3 grand a month to buy one of these.

SW17LS

Depends. I make more than that and I pay way less than half in taxes. People with high incomes often have a lot of tax strategies, income that comes from businesses with writeoffs, K1s, tax savings entities like S Corps, etc. You're only paying anywhere near 50% if its straight W2 employment.

Even if its $3k a month, with that kind of income thats 10% of their gross monthly income. If you look up what "financial gurus" (who are FOS) say the max one should spend on a monthly car payment...its 10% of their gross monthly income.

I have NEVER considered my net worth when deciding whether I can afford a car or not. I have a financial plan, and I fund that plan, and whatever is left over is my money to finance my household and my lifestyle. If a car payment fits into what I want to allocate to that spend and I want it, then I get it. The amount I spend on cars has zero impact on my financial situation. Most other people with high incomes are the same way.

If you have to really think about how you can afford a car like that, you shouldn't be buying one or leasing one.

AJT123

Us either, but we have a cap we spend on cars just because of the way I am with money. We just piddle around town like a 5 mile radius, thats it. A trip out of town once a year or so maybe. There is no reason we need anything nicer than the already nice cars we have, old or not.

I just spent a lot on a boat (double what I paid for my LX) but that's a financial hit very worth the happiness etc. boating provides and I hope to get 20 years out of this vessel.

SW17LS

Everybody's different, thats why blanket statements about what someone can and can not afford or should and should not spend are meaningless, everybody's situation is really different. Bottom line is, most people who buy $150k cars have a lot of disposable money. If you're just one person with no family and you live in a low cost way, you need a lot less than $350k to have a lot of disposable money, so its all relative.

If I didn't drive as much as I do, I wouldnt spend as much as I spend on my car either.

EZZ

Exactly...we shouldn't judge as a ton of people here have a ton of disposable income. Overall, $150k for a car isn't that much money for a lot of people...no more expensive than to get a well loaded 911S. $3K per month is actually cheap compared to what i pay for private school for my kids . I always complain that the kids ate my Porsche fund.

SW17LS

Yep, totally!

bitkahuna

iTrader: (20)

excet when it comes to boats.

And after a point this isn't about reason any longer. You don't have a great reason to dunk a load of money on a boat although you have a wonderful reason, it will make you happy. Buying my LC for 100K was 'dumb' but i don't regret it.

And boats are typically more expensive to maintain than cars, but you want it, good for you!!!

humans can rationalize anything.

including buying a 2s 0-60 sedan (brings it home)

swajames

“What I choose to waste money on is perfectly explainable and rational, but you should see what these other idiots are spending on their cars..!”

do I have that right?

EZZ

Worth every penny

SW17LS

Exactly. I have no strong desire to own a boat. My dad had a boat, and I enjoy boating, but its not something that I have the time for or the focus for, I live too far from the water, etc. Perhaps there will come a time in my life where I have a boat or want a boat. That boat will cost more to have than my S Class costs me to have I bet lol.

Pretty much lol. I have a friend who thinks the money I spend on cars is absurd. But, he belongs to a country club he pays nearly $1,000 a month just to belong to and he just rented a villa in Italy for a month for $27,000. Neither of those things appeal to me. My sister in law has a house in NJ where her mortgage payment is $9,000 a month. Zero interest in that either, although technically I could "afford" it. They've never had a car over $40,000 even though they could afford to do so. So, its all relative.