How Much Should I Spend on Car?

So let's say you have saving of $70k for example, how much of that you'd be happily "invest" into buying car? 10% or so? I really like a car and I can afford to buy 11 of them with my saving but I'm feeling guilty to do #ozbargainSpirit

Comments

  • +4

    How long is a piece of string and what do you want to do with the string????
    More info needed… A lot more.

  • +3

    Little as possible for a car that does what i need it to do

    • +2

      So while this is a reasonable way of thinking, it depends if you see a vehicle as an A-to-B tool or as something to be proud of and enjoy. Many people really enjoy driving, cleaning, modifying etc their vehicles and thus choose to spend more on them. Some prefer larger cargo space and others desire 4x4 capability. To each their own as long as you're not putting yourself in debt for show-off reasons.

  • Buy 11 of them.

  • What's the car? I like your thinking though

    • Just a brz

      • Younger than 25 years old? If so, go for it, enjoy it.

        • Just 25 so guess I can't? Lol jkz

          • +3

            @newbiesh: Meh, it's your money. If you like it and makes you happy and enables you to enjoy cruising, roaming around and adventure trips then go for it. You only live once.

            Just don't do lame things like this: https://carsales.pxcrush.net/carsales/cars/private/279kjt201...

            No one thinks that's cool, looks stupid.

            • @Hybroid: "but the sick aero bro"

            • @Hybroid: Dude has done that to a baby blue Echo. Also rubber wheel arches, neons and false eyelashes. Bloody awful.

            • @Hybroid: Hahahahaha, I guess you must be pretty old if you think spoilers on a car looks lame…..

              • @Zachary: There are plenty of spoilers that look good. Even better when they're functional too. But over the top childish nonsense like that one are just stupid and laughable.

                • @Hybroid: Oh? Please do enlighten me on the difference between over the top childish nonsense and one that's actually functional and or not so childish looking?

      • 25 with nearly 400k in savings?

      • Not prone to heaps of issues, pretty much bottom of depreciation, seems like a decent choice.

      • As an owner of an 86, if you hop on the multiple 86/BRZ buy swap sell pages on facebook, there are people selling theirs all the time.

        Great cars, love mine.

    • +1

      I like you too

  • +6

    $80k

  • $0

  • have you considered a novated lease?

  • What's your annual salary and expenses?

  • I wouldn't do more than 20% of annual salary. Depends on your circumstances though.

  • Dont buy an old or a brand new car. Get a car that is 2-3 years old because it will have depreciated a bit and you'll few thousand dollars.

  • as much as you can afford and still meet your needs.

  • I bought my car in sydney from a dealer with a free 3 year warranty. $2900

    • +6

      That's excellent news Pam, things are looking up!

    • +1

      free 3 year warranty.

      Yeah, that’s not how they work…

      • well actually it is, I have read the warranty

        • Ok. No problem. Enjoy your $2,900 car with 3 years free warranty, Pam.

  • Less than 25k if you’re planning to keep it forever and 5-10k if you’re saving for a house.
    Buy something cheap and reliable, so no holdens, fords or luxury cars etc.

    • If you spend enough on a car big enough you can live in it. Maybe OP is buying an RV.

  • +3

    cars are a complete waste of money if you want to get ahead financially

    • He is doing it as an investment. It is a different universe.

      • Obviously a high yield one too.

    • But they're quite handy getting from A to B without interacting with the public.

    • The ability get anywhere in the country on demand in reasonable time with enclosed protection and comfort? Wouldn't call that a ripoff even if you're a cheapskate. You need a job to get ahead financially and most people need a car to hold a job.

  • No more than 50% of your annual income

    • Gross or Net?

      • I go by before tax income. Its easier. Its just a personal rule though. Not a hard and fast rule.

  • Using "invest" on that basis you should not buy a car. Just rent it one you need one. It is obviously you are not proper and fit to make any investments.

    It is never about a % of your savings you would put towards a car. Question is whether you seriously need a car? If you live in the city and your work place is like 30 mins walk or by bike and easily reached by public transport (rain days) why would you bother? Or if you make $40k and you are buying a hybrid Corolla to be an Uber driver as a side hussle and make another $10k a year on a $30k car. If you are on $200k then you might still buy a Corolla because $10k Uber money isn't worth your time.

    But then on the other hand what do I know.

  • I did mystery shopping on a couple of new cars. Some of them have excellent warranties and add ons. Just do your research EOFY may be good time to buy

  • When I was on $75k (2008) I bought a new car for $30k. It was a sedan and I really wanted a wagon which was $36k and that was too much (wife objected and I thought it a lot too). I regret not getting the wagon but don't regret not spending the extra $6k…

    I'm on significantly more than $75k now and only intend spending $20k on a 2nd hand car next time I "upgrade". Buying depreciating assets is a mugs game.

  • If I had 70k savings , I would put a deposit on a unit and public transport it.

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