nmvettec7

Answer to your question:

10% of your monthly net income (after taxes, after deductions).

$9000 Net income monthly after all deductions =$900

$3000 Net monthly income after all deductions = $300

Price of the vehicle is not a determining factor. It's the income that is the primary source of cash flow that should dictate what price of vehicle the person can afford.

John Ulrich

You have to ask yourself.....would Dave Ramsey approve?

TNSQUIRE

Then based on your logic my $900 per month payment is not an issue.

thrilled

I could possibly afford A Ferrari or maybe even A Lamborghini.Am I going to buy one?NoWay.
I believe it's the principle of the thing.I mean this 2014 C7 cost more than my 1st house.

Never Settle

Interesting, thank you for your take. I like hearing perspective as everything is relative..

lakemg

Not me, I'm still driving my old 1969 z/28. Antiquated? Yes, but she's paid for

nmvettec7

Dave Ramsey provides some very good advice. It is basic advice. However, Dave Ramsey is a radio host and a journalist. Dave Ramsey is not a licensed financial advisor, and is not a Registered Investment Advisor with FINRA or the SEC or any state. Dave Ramsey is not required to take Continuing Education to maintain any securities licences designated by FINRA, the NASD, SEC or any state securites departments.

If you have $9000 of monthly income after all taxes and required earnings deductions, yes; you can afford a $900 per month car payment and you would be considered a upper level wage earner. You have very good potential to build a high net worth over an extended period of time. Enjoy life. It appears you are a successful individual.

Your post makes me think that you have been a "saver" over a long period of time who most likely has built a nice net worth over an extended period of time also. The comment that your C7 cost more than your first house also tells me that most likely your age is in excess of 70 + years old. My parents first house in 1952, in a suburb of Chicago (Hinsdale) was $28,000. While prices of housing has gone up steeply since that time and are priced much higher today, so have wages to support the higher prices seen today. Also your post tells me your a conservative person with disciplined spending habits.

Your welcome. I have advised many clients in my past 31 years as a registered and licensed financial advisor. I still carry my required licensing requirements with a major Wall Street national firm.

rkhegler

If you make a net of $9000 a month, you should have a savings account built up and be able to pay cash!

Dave80C3

I do not agree.

First a Corvette that is not paid for is not an asset, it is a Liability. Even, like in my case where I owe way less than I could sell the car for. If I lost my job today, which is a real possibility given the current market conditions for off shore drilling, I could go for 6 months, miss no payments on anything. That is also with out touching any investments, just my savings account. That said, my Stingray would be for sale the week I got my pink slip. My and My wife 2015 Harley's would be for sale, and I put 50% down on each, so I would get money in my pocket from their sale. Then my only debt would be my mortgage, we would still have her Range Rover, my Truck, our 13, 09 and 03 Harley's and my 80 Corvette. I could then go much longer with no job. My wife only substitute teaches.


I am even more stringent on what my net is, as it's also after I max out my 401K which with catch up I put 24,000 a year in. I can clearly afford my car using you rule above. In fact 1000.00 a month or more would be ok. My note is 702.54 on my14 Stingray. I almost went with a 2LT vice the 3LT just so my note would be lower. It's only a 48 month note.

I also do feel very bad for any one being displaced by H1B visa workers. Those H1B visa workers come in at a much lower wage, displacing skilled and experienced workers. HIB is invading many tech areas, so the skilled workers especially over 40 have a hard time finding a job even close to what they were earning.

TEXASRANGER

Hope this thread don't turn into a political discussion and get shut down.

TNSQUIRE

I could pay cash but it is earning far more than the 1.99% my loan is costing me.

antebellum

33, and lovin every minute of my c7!

AUTO_X_AL

Sorry, I enjoy having my car and I will enjoy my next one when I get it in 18' on my 37th birthday. Hell, the car I got isn't even what I really wanted but it met my basic criteria and I knew I was only going to have it for 3 years anyway. I wanted it in the spring to enjoy all year and dealers had real issues back then with allocations. I pulled the trigger knowing it was only a short term ownership and I wanted a Vette.

If you plan ahead and know what you want to do, what's wrong with leasing or paying short term on a purchase?? I know my money can make better than the 1.74 rate I can get. The car has a pretty outstanding residual value if you do a 5000 or 7500 mile a year lease and I can flip it when I want to. I live in a 2 1/2 driving season per year state, love auto crossing and tracking and my payments are well under control if 10% is the bench mark for your payment to income ratio. All of them fall under that combined actually. Not to mention that if the world really crashed on me, I have several avenues of disposition of any and all vehicles if the atomic option was necessary.

I guess I really don't understand all of the critical judgement when you really don't know anyone's situation but your own. If that's what makes you feel good, so be it. I'm comfortable with my situation and knowing my only real worry is finding the fastest 200 TW tire I can find to stay ahead of the competition.

Not to mention that my kids love having the car and my 5 year old gets to cruise around with me like I used to with my dad in his 69' stingray. Sometimes you have to live a little.

green2000

We're not far behind you. My wife has 2 replaced knees and I've had both knees worked on. We're on our 7th Corvette which is an automatic. Sure, we have difficulty getting in & out but that only slows us down a bit. We just plan on going farther each time we drive and we don't park close to the curb to minimize exit height. Your 1989 would be difficult for us to get into.

Brio

Crazy compared to what? Your head will likely explode when I tell you I bought a new Z06 and financed the entire purchase. Paying 1500/mo at 2%.

I am 32 and no it's not parents money. Got out of residency 2 yrs ago. The car payment is less than 3% of my monthly income. Could've paid cash but with money that cheap, why? Using the money instead for real estate investments/development.

Every person/situation is different. You can't generalize.

green2000

I'm over 70 and my first house cost less than $20,000 so a lot depends on where you choose to live. I'd have a hard time buying any new car costing less. I sold my 4 year old house in the 1980's for what my C7 cost.

TEXASRANGER

If we're talking age I'll be 69 next and I am in the process of buying my 69 convertible back that I sold in 2012. I will have my 69 to celebrate my 69 with.
And I still modify and pound on them.

bigsapper

For those describing people upgrading, I'm seeing as many, if not more Z06s for sale as base/Z51 vettes.

rkhegler

True, but it would not be hanging over your head. And, you would not be upside down if you crash the car.

Never Settle

it seems the thread has taken a turn into judging whether or not peoples financial standing dictates if they can afford a car of this magnitude, which in most cases turns personal and is all relative. IIRC, the OP was trying to guess as to why he/she sees a lot of C7s show up for sale in the forum shortly after purchase (low miles, etc)

not being able to afford is one assumption..

bored of the car is another assumption..

I think there were a few more..