TABOO!!! How much do I have to make to buy a Vette. . .
07-15-2015, 09:15 AM
#41
This is exactly correct. You must figure out how much of a car payment you can afford in your current budget how much cash/trade value you can put down on the car you want usually at least 25% is required and go from there. Contact some local banks and see what rates, terms and limits they will buy you at then calculate a monthly payment on what the window sticker would be on what you want. Only then will you know if you can afford the car once calculated with your other monthly expenses. A ball park number would be a payment of around $900 a month with the above 25% down payment at 60 months term. You must also figure in what it will cost you it insure it per year and that can vary from $800 to $2000 a year depending on your situation. This IMO would place most owners in a $100k+ income bracket.
07-15-2015, 10:22 AM
#42
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Thanks for all the Input from everybody who posted here!!!
It was more of a theory question than one i thought would have an actual answer.
I was curious what the Vette crowd was like. . . . . . . If there are a bunch of Die-Hards that really enjoy cars enough to eat Hot Dogs and Ramen Soup or If there were a bunch of Investors with too much money and not enough crazy ideas on what to do with the expendable income. (Im guessing both and alot of inbetween, INBETWEEN being the majority)
Again, just a theory question. Im currently (Thanks be to the Lord Jesus Christ)in a position that I believe i can purchase a vette, have some fun with it on the weekends, and then wrap it back up and not look at it for a week.
Thanks again for all the posts and responses!!!
Favorite post so far: Guy who answered "$123,456 Thats what you have to make"
It was more of a theory question than one i thought would have an actual answer.
I was curious what the Vette crowd was like. . . . . . . If there are a bunch of Die-Hards that really enjoy cars enough to eat Hot Dogs and Ramen Soup or If there were a bunch of Investors with too much money and not enough crazy ideas on what to do with the expendable income. (Im guessing both and alot of inbetween, INBETWEEN being the majority)
Again, just a theory question. Im currently (Thanks be to the Lord Jesus Christ)in a position that I believe i can purchase a vette, have some fun with it on the weekends, and then wrap it back up and not look at it for a week.
Thanks again for all the posts and responses!!!
Favorite post so far: Guy who answered "$123,456 Thats what you have to make"
Last edited by greanie; 07-15-2015 at 10:34 AM.
07-15-2015, 10:27 AM
#43
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Also,
To those who posted, in some form or another the phrase "If you have to ask you cant afford it" Please re-read the Original post in its entirety.
This was not a "Can I afford it?" question, it was merely a topic to pass ideas around on ownership cost for different buyers/owners.
To everyone else: Im glad the minority were the commenters with the above statement, I still (as a soon to be corvette owner) have plenty of Faith in the community in the fact that i will be able to get on here and ask for advice and positive or CONSTRUCTIVE feedback.
To those who posted, in some form or another the phrase "If you have to ask you cant afford it" Please re-read the Original post in its entirety.
This was not a "Can I afford it?" question, it was merely a topic to pass ideas around on ownership cost for different buyers/owners.
To everyone else: Im glad the minority were the commenters with the above statement, I still (as a soon to be corvette owner) have plenty of Faith in the community in the fact that i will be able to get on here and ask for advice and positive or CONSTRUCTIVE feedback.
07-15-2015, 11:19 AM
#44
I believe the answer depends more on how you value things rather than income. When people ask me why i would spend $70k+ on a two door, unpractical sports car I tell them this....Everyone values things differently. Some like cars, some like boats, some like going out and blowing money, some like spoiling their family and significant other and etc. I like sport cars and always have. The money i save from not spending it on the other things allows me to afford the extra expense. Some people look at a car as a necessity to get A to B. During the coarse of your life the top 3 places where you will spend the most time at is at your House, at work, and in your car. Enjoying that time in a car was something i valued immensely (mine is a daily driver). Its not unfeasible for someone to make little money to save, invest, and be patient to ultimately get the car of their dreams while still being financially responsive.
As a financial response.... If you have no debt, own a appreciating asset like a house, can afford the mortgage without being financially distraught, pay 50% down, then you can afford corvette easily. With interest rates as low as they are you could invest the other 50% for a greater return than what the interest would be.
As a financial response.... If you have no debt, own a appreciating asset like a house, can afford the mortgage without being financially distraught, pay 50% down, then you can afford corvette easily. With interest rates as low as they are you could invest the other 50% for a greater return than what the interest would be.
07-15-2015, 11:24 AM
#45
I have a little girl and a wife. So a two seater was out of the question from Day 1. She fits fine in the back of my mustang with room to grow. If she gets taller than her mom, then it might become an issue. lol. But by that point she'll have her very own econobox 5 star crash rating car.
07-15-2015, 11:59 AM
#46
Intermediate
Also, I'm not making anything close to "$123,456" and I can still afford it easily and still have money to save!
07-15-2015, 01:17 PM
#49
Burning Brakes
I believe the answer depends more on how you value things rather than income. When people ask me why i would spend $70k+ on a two door, unpractical sports car I tell them this....Everyone values things differently. Some like cars, some like boats, some like going out and blowing money, some like spoiling their family and significant other and etc. I like sport cars and always have. The money i save from not spending it on the other things allows me to afford the extra expense. Some people look at a car as a necessity to get A to B. During the coarse of your life the top 3 places where you will spend the most time at is at your House, at work, and in your car. Enjoying that time in a car was something i valued immensely (mine is a daily driver). Its not unfeasible for someone to make little money to save, invest, and be patient to ultimately get the car of their dreams while still being financially responsive.
As a financial response.... If you have no debt, own a appreciating asset like a house, can afford the mortgage without being financially distraught, pay 50% down, then you can afford corvette easily. With interest rates as low as they are you could invest the other 50% for a greater return than what the interest would be.
As a financial response.... If you have no debt, own a appreciating asset like a house, can afford the mortgage without being financially distraught, pay 50% down, then you can afford corvette easily. With interest rates as low as they are you could invest the other 50% for a greater return than what the interest would be.
And this one took me awhile to figure out in life, I always stay ahead on equity in a vehicle. ALWAYS! I used to be the guy upside down, adding what I owed to the next car. I am 43 now and since my mid 30's have followed this. I also buy most vehicles a year or two old. I bought my 08 C6 for $30k in 2010 w/ 4k miles on it. Just sold it last month for $28k w/ 30k miles on it. Lost $2k in value in 5 yrs! Bought a used C7 Z51 3LT w/out a scratch on it for $61k, 3k mikes (9 months old). Saved $12k. Financed $15k at 2.25%. So I feel the Corvette is a good vehicle from an investment standpoint as long as one can afford it. I do not care what the fuel costs are, Ive never even looked to see my mileage and frankly I drop the hammer as much as I can. Its a FUN car and we all deserve to have some fun in life, right? I have a special needs son and he LOVES to go for rides, hang out with me and helps me detail the car any chance he gets. Life can be tough at times and has its challenges, when I get in my Stingray and press the ignition switch, everything else seems to fade away.
07-15-2015, 01:19 PM
#50
Le Mans Master
This is exactly correct. You must figure out how much of a car payment you can afford in your current budget how much cash/trade value you can put down on the car you want usually at least 25% is required and go from there. Contact some local banks and see what rates, terms and limits they will buy you at then calculate a monthly payment on what the window sticker would be on what you want. Only then will you know if you can afford the car once calculated with your other monthly expenses. A ball park number would be a payment of around $900 a month with the above 25% down payment at 60 months term. You must also figure in what it will cost you it insure it per year and that can vary from $800 to $2000 a year depending on your situation. This IMO would place most owners in a $100k+ income bracket.
07-15-2015, 01:43 PM
#51
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MikeinAZ - - -
Quote: "I do not care what the fuel costs are, Ive never even looked to see my mileage and frankly I drop the hammer as much as I can. Its a FUN car and we all deserve to have some fun in life, right? . . . . . Life can be tough at times and has its challenges, when I get in my Stingray and press the ignition switch, everything else seems to fade away."
This may be a perfect answer (from one car lover to another) , i can tell you are a car lover regardless of costs or any other factors (although you have done well on your last car).
I feel this exact way when i take my FastBack Stang out and rip through the gears. Doesnt matter how much i paid for that car . . . when you get in and lay some rubber on the pavement . . . . It all fades.
Quote: "I do not care what the fuel costs are, Ive never even looked to see my mileage and frankly I drop the hammer as much as I can. Its a FUN car and we all deserve to have some fun in life, right? . . . . . Life can be tough at times and has its challenges, when I get in my Stingray and press the ignition switch, everything else seems to fade away."
This may be a perfect answer (from one car lover to another) , i can tell you are a car lover regardless of costs or any other factors (although you have done well on your last car).
I feel this exact way when i take my FastBack Stang out and rip through the gears. Doesnt matter how much i paid for that car . . . when you get in and lay some rubber on the pavement . . . . It all fades.
07-15-2015, 01:58 PM
#52
On a 50K+ car loan it usually is unless you have perfect credit. Again if you can't afford a $16-17K down payment or your current car has no equity or worse is upside down you prolly shouldn't be buying a $68K car.
Last edited by Black&White; 07-15-2015 at 02:04 PM.
07-15-2015, 02:20 PM
#53
Safety Car
You need to make enough that you have about $1000 a month of completely disposable income not allocated to anything else. Some will be for payment and some will be for insurance.
You'll need to save that $1000 for about 10 months for a down payment. Or you'll need to save it for 60-70 months to purchase for cash. (and you needed to start 60-70 months ago). If starting now, it will be $1200 a month because in 60-70 months a vette will be 80-100k.
How much you need to make per year is relative to how much your expenses and other savings/rainy day funding costs, but you need $1000 a month that you could light on fire if you wanted before you start saving/thinking of a vette.
Even if you have cash, at 1.49-1.99%, it makes no sense to spend your cash (other than down payment so you won't be upside down). If you don't have good credit, you probably won't be financing a $70,000 car.
OP didn't ask for financial advice on where to put his money. If he had, the answer is never buy any new car and go buy a $3000 crown vic and then visit fatwallet.com for money saving tips and bogleheads.org for investing tips.
You'll need to save that $1000 for about 10 months for a down payment. Or you'll need to save it for 60-70 months to purchase for cash. (and you needed to start 60-70 months ago). If starting now, it will be $1200 a month because in 60-70 months a vette will be 80-100k.
How much you need to make per year is relative to how much your expenses and other savings/rainy day funding costs, but you need $1000 a month that you could light on fire if you wanted before you start saving/thinking of a vette.
Even if you have cash, at 1.49-1.99%, it makes no sense to spend your cash (other than down payment so you won't be upside down). If you don't have good credit, you probably won't be financing a $70,000 car.
OP didn't ask for financial advice on where to put his money. If he had, the answer is never buy any new car and go buy a $3000 crown vic and then visit fatwallet.com for money saving tips and bogleheads.org for investing tips.
Last edited by jedblanks; 07-15-2015 at 02:32 PM.
07-15-2015, 02:52 PM
#55
Instructor
Buy a new car is always a loosing deal, ppl buy corvettes bc they are a dream car, as we get older savings grows, so there not so much risk there, we also realize YOU ONLY LIVE ONCE !
07-15-2015, 02:57 PM
#56
Drifting
You don't need any down payment most places today and you can usually get a very low interest loan from a credit union.
07-15-2015, 03:25 PM
#57
Safety Car
It's not just about what you make, it's about what other obligations you have, and what your other priorities are? How much of your takehome goes to rent, food, beer, whatever? And how much of food (eating out), beer, entertainment are you willing to cut out, if necessary?
Do you want to buy a house in the foreseeable future? Move to a nicer apartment or house? Get married and/or have kids? Factor saving money for those things into your calculations. And don't forget to factor insurance. I don't know how old you are, but insurance on a C7 for someone in their 20s isn't going to be cheap.
There's a reason most Corvette owners are older. To each his own, and maybe you can splurge now and save later, but I personally have never thought a car was worth going into debt for 6 or 7 years. As low as today's interest rates are it's not as bad a proposition as it used to be, but even so.
I'm reminded of someone I knew when in college who was still making payments on several cars he didn't own any more.
(No, I'm not suggesting you'd be like that. Just that long term debt can put you in a difficult situation if things go south.)
Do you want to buy a house in the foreseeable future? Move to a nicer apartment or house? Get married and/or have kids? Factor saving money for those things into your calculations. And don't forget to factor insurance. I don't know how old you are, but insurance on a C7 for someone in their 20s isn't going to be cheap.
There's a reason most Corvette owners are older. To each his own, and maybe you can splurge now and save later, but I personally have never thought a car was worth going into debt for 6 or 7 years. As low as today's interest rates are it's not as bad a proposition as it used to be, but even so.
I'm reminded of someone I knew when in college who was still making payments on several cars he didn't own any more.
(No, I'm not suggesting you'd be like that. Just that long term debt can put you in a difficult situation if things go south.)
07-15-2015, 03:28 PM
#58
Melting Slicks
There's no single answer to the question b/c there are too many variables, starting with the bottom line on the vehicle you choose, less trade and downpayment (if any), the the interest rate on the loan, and finally your other regular monthly expenses.
Given there are 4 sub-models (1-3LT, Z06) tiered to the point the bottom line price can nearly double....then start adding the other options....
So simplify it.
Given many banks advertise (any car loan) 60 month loan payment as just under $17 per thousand borrowed, I'll use that as a baseline.
assume no down payment and a base 1LT @ 53k:
53 * 17 = 901 / month.
but @ 50% down:
(53/2) * 17 = 450.5 / month
sales tax varies, but in this State, would add almost another 2k to the bottom line.
so another 30$ for taxes. (throw in title/tags)
plus monthly cost for insurance, property tax, gas, which also vary widely depending on the State.
All on top of your normal monthly expenses for housing, food, etc.
Given there are 4 sub-models (1-3LT, Z06) tiered to the point the bottom line price can nearly double....then start adding the other options....
So simplify it.
Given many banks advertise (any car loan) 60 month loan payment as just under $17 per thousand borrowed, I'll use that as a baseline.
assume no down payment and a base 1LT @ 53k:
53 * 17 = 901 / month.
but @ 50% down:
(53/2) * 17 = 450.5 / month
sales tax varies, but in this State, would add almost another 2k to the bottom line.
so another 30$ for taxes. (throw in title/tags)
plus monthly cost for insurance, property tax, gas, which also vary widely depending on the State.
All on top of your normal monthly expenses for housing, food, etc.
07-15-2015, 03:44 PM
#59
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Please Please Please Please Please
To all posters, this was not a financial question!!!!! (Not entirely, although partially. Some of the ideas shared here as "Personal-Opinions" are very insightful to the corvette owners club member personality and mentality)
Please re-read original post and dont take it as me asking a bunch of random strangers financial advice . . . . its a starter question meant to evoke responses of "I dont care how much it costs i love my Vette" and "I saved long and hard before buying myne and it means that much more to me"
My initial thoughts were this was gonna be more than an 8-Color-Crayon-Box of answers.
To all posters, this was not a financial question!!!!! (Not entirely, although partially. Some of the ideas shared here as "Personal-Opinions" are very insightful to the corvette owners club member personality and mentality)
Please re-read original post and dont take it as me asking a bunch of random strangers financial advice . . . . its a starter question meant to evoke responses of "I dont care how much it costs i love my Vette" and "I saved long and hard before buying myne and it means that much more to me"
My initial thoughts were this was gonna be more than an 8-Color-Crayon-Box of answers.
07-15-2015, 04:07 PM
#60
Pro
I believe the answer depends more on how you value things rather than income. When people ask me why i would spend $70k+ on a two door, unpractical sports car I tell them this....Everyone values things differently. Some like cars, some like boats, some like going out and blowing money, some like spoiling their family and significant other and etc. I like sport cars and always have. The money i save from not spending it on the other things allows me to afford the extra expense. Some people look at a car as a necessity to get A to B. During the coarse of your life the top 3 places where you will spend the most time at is at your House, at work, and in your car. Enjoying that time in a car was something i valued immensely (mine is a daily driver). Its not unfeasible for someone to make little money to save, invest, and be patient to ultimately get the car of their dreams while still being financially responsive.
As a financial response.... If you have no debt, own a appreciating asset like a house, can afford the mortgage without being financially distraught, pay 50% down, then you can afford corvette easily. With interest rates as low as they are you could invest the other 50% for a greater return than what the interest would be.
As a financial response.... If you have no debt, own a appreciating asset like a house, can afford the mortgage without being financially distraught, pay 50% down, then you can afford corvette easily. With interest rates as low as they are you could invest the other 50% for a greater return than what the interest would be.