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      11-02-2012, 10:48 AM   #1
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How much should one spend to own a BMW?

From what I gather, it seems that one should only spend 10% to 20% of their net income on a monthly basis for a new vehicle. That amount includes lease or loan, insurance and gas. What do you people think? Is it a fair assumption? Do you tend to spend more or less than that?
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      12-28-2012, 05:47 PM   #2
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I spend 8% on lease, 2% on gas and 3% on insurance. I rent my apt near NYC, so higher living expenses.
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      04-11-2013, 11:51 AM   #3
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Depends on your lifestyle and other things in life. Do you have a mortgage, marry, kids....etc?
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      02-09-2014, 06:50 PM   #4
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Everyone is different, but 10% is a decent rule of thumb. I spend a bit less.
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      05-11-2014, 12:20 PM   #5
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Every plus alot
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      05-11-2014, 01:20 PM   #6
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theres no person that can tell you how much to spend on a car. no one here knows your financial situation, no one here knows what your income to debt ratio is. actually, there is no right answer at all.

what if i told you to spend 10% of your salary on a car...that doesnt mean its financially right...you may have expenses that exceed 90% of your income....so now what?

what if you spend 10% of your salary on a car......what if you lose your job the next week....how much money do you have in the bank? how long can you float yourself while you look for a new job?

what if you're straight out of school.....well paying job, no debt, live at home, very little expenses and you can comfortably spend 50% of your income on a car......does that make it right? nope.
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      05-16-2014, 03:17 PM   #7
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When you guys say 10%, 10% of what...your annual salary??

I doubt anyone here makes half a million annually (no offense)
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      05-17-2014, 11:06 PM   #8
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Quote:
Originally Posted by ska325xi View Post
When you guys say 10%, 10% of what...your annual salary??

I doubt anyone here makes half a million annually (no offense)
Why do you doubt that?

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      05-18-2014, 12:31 AM   #9
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My point was most 3 series drivers dont go by the 10% rule (if thats what everyone is saying)

So everyone makes half a million here?? if you do...good for you

Average family drives a $25-35k car...base off a $25k car following this 10% rule means average family makes $250k...thats a way above average family not an average family lol
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      05-18-2014, 01:27 AM   #10
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Quote:
Originally Posted by ska325xi View Post
My point was most 3 series drivers dont go by the 10% rule (if thats what everyone is saying)

So everyone makes half a million here?? Again I doubt it. But if you do...good for you

Average family drives a $25-35k car...base off a $25k car following this 10% rule means average family makes $250k...thats a way above average family not an average family lol
I think people are saying your total annual car payment should be no more than 10% of your annual income.

So $55,000 car with a 60 month car loan would be roughly $11,000 a year.. So your annual income would be around $110,000 if you budget 10%. Obviously i'm not including insurance, gas, & maintenance which should be factored in.

Is that the logic the OP was thinking?
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Last edited by PabloK; 05-18-2014 at 01:35 AM.
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      05-18-2014, 02:08 AM   #11
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I don't really understand the question or thinking process here... Either you can afford the car or you don't.

If that is 50% of your income or 1% - does it really matter?
As long as everything gets paid every month and no one gets hurt in the process it is all good!
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      05-18-2014, 09:21 AM   #12
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Quote:
Originally Posted by PabloK
Quote:
Originally Posted by ska325xi View Post
My point was most 3 series drivers dont go by the 10% rule (if thats what everyone is saying)

So everyone makes half a million here?? Again I doubt it. But if you do...good for you

Average family drives a $25-35k car...base off a $25k car following this 10% rule means average family makes $250k...thats a way above average family not an average family lol
I think people are saying your total annual car payment should be no more than 10% of your annual income.

So $55,000 car with a 60 month car loan would be roughly $11,000 a year.. So your annual income would be around $110,000 if you budget 10%. Obviously i'm not including insurance, gas, & maintenance which should be factored in.

Is that the logic the OP was thinking?
Gotcha...that makes more sense to break the loan amount per year
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      02-01-2015, 12:44 AM   #13
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The opinion that really counts is that of the lenders. Their benchmark is generally no more than 20%, based on their desire to be sure that they'll get paid. Experience has shown them that's a safe figure.
Quote:
Average family drives a $25-35k car...base off a $25k car following this 10% rule means average family makes $250k...
That would apply if you were paying it off in one year, with no down payment.
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      02-02-2015, 10:57 PM   #14
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Quote:
Originally Posted by PabloK
Quote:
Originally Posted by ska325xi View Post
My point was most 3 series drivers dont go by the 10% rule (if thats what everyone is saying)

So everyone makes half a million here?? Again I doubt it. But if you do...good for you

Average family drives a $25-35k car...base off a $25k car following this 10% rule means average family makes $250k...thats a way above average family not an average family lol
I think people are saying your total annual car payment should be no more than 10% of your annual income.

So $55,000 car with a 60 month car loan would be roughly $11,000 a year.. So your annual income would be around $110,000 if you budget 10%. Obviously i'm not including insurance, gas, & maintenance which should be factored in.

Is that the logic the OP was thinking?
You are correct IMO, if you don't make at least 100K you should not buy a car that costs 50K+, unless you have a big down payment which will bring the car to your 10% in 3 years

That is my rule, other than the house dont buy nothing that you cannot pay off in 3 years, if that's your case then lease it, it will be cheaper that way
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      04-05-2015, 01:07 PM   #15
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Quote:
Originally Posted by 64-bit View Post
You are correct IMO, if you don't make at least 100K you should not buy a car that costs 50K+, unless you have a big down payment which will bring the car to your 10% in 3 years
I currently make around $45k, spent that amount on my BMW. I wouldn't recommend spending a years income on a car to the average person, but I own my house free and clear, have no dependents, only pay $150 a month for health insurance (I'm on Medicare) and I have about $200k in my investment portfolio. The $350 a month I pay for the car is no strain at all on my budget, so why not?
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      04-08-2015, 02:04 PM   #16
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I've seen lots of newish c300 mercedes around the projects before. I wonder if they're spending 10% of their annual salary on their cars...
It really all depends, you can have a E9X or E82 for relatively short money these days and they're great cars with lots of power especially if you get one with an N54 motor. That being said buying a used BMW is going to cost you some dough. There are lots of sensors and other things that shit the bed and you usually don't walk away from the dealer without spending less than a grand in most cases.
It's kind of a trade off owning a German luxury car. You get style, power, and status but you also get a lot of headaches as they're not cheap to maintain.
That's why I lease now, you don't pay for maintenance. To some it sounds like throwing money away, to me it's piece of mind for the future.
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      06-12-2015, 06:27 PM   #17
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Quote:
Originally Posted by Dosturbos View Post
I've seen lots of newish c300 mercedes around the projects before. I wonder if they're spending 10% of their annual salary on their cars...
It really all depends, you can have a E9X or E82 for relatively short money these days and they're great cars with lots of power especially if you get one with an N54 motor. That being said buying a used BMW is going to cost you some dough. There are lots of sensors and other things that shit the bed and you usually don't walk away from the dealer without spending less than a grand in most cases.
It's kind of a trade off owning a German luxury car. You get style, power, and status but you also get a lot of headaches as they're not cheap to maintain.
That's why I lease now, you don't pay for maintenance. To some it sounds like throwing money away, to me it's piece of mind for the future.
If you're looking to buy used, definitely go with CPO. It's worth the extra peace of mind, because unless you're going to bring it to a workshop yourself to check everything, you won't be able to eyeball any defects or problems from the outside (i.e. powertrain, etc.)
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      06-13-2015, 11:11 AM   #18
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IMNSHO, if you can't afford to buy the car outright, you probably shouldn't be driving a premium (upscale, whatever) car.

If you can afford to buy it outright, you then decide whether it makes sense to lease/finance.
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      06-15-2015, 11:21 AM   #19
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Quote:
Originally Posted by ipilcher View Post
IMNSHO, if you can't afford to buy the car outright, you probably shouldn't be driving a premium (upscale, whatever) car.
If you applied that theory to all cars the roads would be pretty empty. There wouldn't even be many used cars, as so few new cars would have been sold to create a pool of used cars.
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