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