Income to Lease Payments

Probably a bit of a personal question, but I thought I’d ask anyways for those interested in sharing. I’m not asking people to disclose exact numbers, so here goes… :relaxed:

What percentage of your annual household income goes to your total annual lease payments? If you choose to share, for consistency sake: Gross income against total annual lease payments (no gasoline, insurance, or maintenance factored in). I’d be interested to see the range across the forum.

For the sake of a simple example, here’s some nice round numbers:

Gross Income of $100,000
1 car lease of $250 per month
(12*$250)/$100,000 = 3%

Personally, we’re at 3.8%

(Please lets not turn this into a pissing match or a witch hunt on what you think someone makes based on post history)

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2.44% For my Hellcat.

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Two leases: E300 loaner and Ram 1500 combined is about 3% of gross income. I say about since my income varies yearly.

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I think this is really useful. My guess will be that most people are in and around the 2-4% mark. It will help answer peoples questions when they are trying to budget for their lease.

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FWIW…the financial “experts” say you should be no higher than 15% and anything 10-15 is recommended. Which once again proves financial “experts” don’t know fuck all about anything. I think I’d jump off a building before paying 15% of my income on a car.

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Which “experts” said that, or where did you see that written?

21.6%… Im young so no rent… so its more like 10%.(also will probably by this car)

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Expert estimates range broadly. Greg McBride, a senior financial analyst at Bankrate.com, advises that a car payment should equal no more than 15 percent of your pretax monthly pay. That means if you make $50,000 a year, your monthly car payment could be as much as $625.

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Do they provide that advisement under the assumption that you’re financing the car and at least will have an “asset” at the end of your payments?

I dunno. Besides most people never actually own that “asset” given they perpetually trade in (and lose money) on the cars they finance. It’s funny how the same people who poo-poo leasing also lease but at twice the price, by trading cars in every few years. But I digress…

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This blog advising millenials says 20% of gross income on a car is totes cool man. LOL And if you really love cars, why not 50%?

https://www.moneyunder30.com/how-much-car-can-you-afford

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HAHAHA! Now that’s the category I want to fall under.

1.9% . 3 vehicles. 1 Benz, 1 Chevy truck, 1 Chevy car.

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It assumes financing, which is higher than leasing.

I’m on the lower end of the income scale, so mine is 10%

But I’m comfortable with the amount I pay and the relative security of always having a car that’s under warranty and shouldn’t need costly repairs.

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around 3% per car. 20characters.

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Same boat - it’s a little difficult to measure just because income varies quite a bit annually. Personally, though, I don’t think I could ever justify more than 3% on a car (unless I had an unexpected down year). I love cars, but I can’t let hobbies get too expensive :grin:

I see people with $600 or $700/mo payments and at that point it just feels excessive. :laughing:

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I am at about 3%. Next one will try for less than 2%. Not a bad metric to use.

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Granted income is the most important. I think that value of your house versus value of your car is also important. I’ve seen 90k escalades in driveways where the house was 120k.

Man not in NY. But yeah plenty of stories of guys buying mercedes and living in a basement.