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Originally Posted by yourcakeisready
I posted this same topic on personal finance forums and was absolutely slammed, (obviously - not sure what I was expecting), so I'm posting here because I feel like other people have been/are in my shoes. Also would like to know how much people generally make and how much they are financing for these cars.
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Everyone's situation is different. Back when I was still making what you are currently making ($70k), I was driving a CPO Audi A4 I got for $35k, which is considerably cheaper than a new M3. Back when I was only making $90k I got a CPO Audi S4 for $45k. The difference being I had a condo at the time. So, is it possible to afford an M4 making only $90k? Sure! But also consider this: Just because you are selling your current car for $11k doesn't mean that it makes your M4 suddenly more affordable by $11k. That $11k you are getting for your current car is a net LOSS. You paid more for that car than you are selling... it's depreciated. You're just getting some of it back. So yeah, it helps, but you're still paying that $60k. You just made it in payments to that old car. Make sense?
One more thing... have you looked at CPO M4's?
Good luck with your purchase!
Quote:
Originally Posted by NemesisX
Interestingly, the median Prius owner makes $90,000/year. At $90,000/year I'd personally spend no more than $30,000 on a car (new or used).
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This is a good rule. I tended to stretch that a little! I wouldn't spend more than half my annual gross... but that's the "car guy" rule imho.