Ouch, I apologize. Terrible early morning math skills hahahaha
Fixed lol (sheepishly presses reply)
That’s still great though. As Carandwatch said, it’s a good exercise in humility 
As a lowly truck driver and a nurse, the Elantra and focus suit our family well lol
My Ferrari runs at 0.5% of income and my lambo at 0.7%. Should I include the Maybach that I deduct as expense against my real estate business?
2 Likes
Volvo S90 for 279? Lol.
I think I see room in there for a $99 lease deal …
1 Like
always room in the garage for one more, right?? It drives my wife nuts just out of sheer curiosity what do leases run on Ferraris and Lamborghinis? Dying to know!
And you like Genesis, so that is strike 3 lol 
2 Likes
Not just an S90, a 60k MSRP S90 which would have to be a T6 or a T5 with every box checked.
Anything under 10% (including insurance) should be fine. I’ve talked with a ton of people that don’t take insurance into account when they’re looking at cars and there are some pretty weird rates that come up as a result of even high HP sedans.
From a financial planning perspective, the better test is what’s your annual car expense (all in) to your Annual Discretionary Income (Gross Income minus Taxes minus all of your ongoing expenses…student loans, home mortgage or rent, child support, utilities & telecom, food, insurance, etc).
I agree - however that takes a lot more time to calculate so thought this to be the better metric to ask.
It all depends on priorities. Some people love cars and are never home, so cars that they commute/spend most of their time in matter. Especially if you live in a low COL area, I can find a great house for $250k in Texas or Florida, but alas, I live in NJ, so houses here are expensive AF, and the 250k houses located in a town with a better school district in FL will cost about 900k-1.3M in the town I live in (which also has great schools, but slightly worse than the ones in TX).
My buddy is the same way, he basically only goes home to sleep, so he doesn’t care if his house is smaller or older, but he spends a lot of time in and around his cars, so that’s where he spends his money.
Anyway, you won’t find a decent livable house in a decent area in NJ, so we’re stuck with stupid high mortgage and rent and property tax payments.
EDIT: I still live with my parents, and we only have 1 lease in the household (2 if you include the truck that I lease for my company, but it’s an open ended lease, so a bit different…) as I own my car outright and my moms car is also payed off. Income is a bit skewed since I quit my job to pursue my dream and my dad recently lost his job and had to take a pay cut.
Anyway, my dad’s loaded C300 ($57k sticker) is like $530/mo.
$530*12= $6360 is about 3% of annual household income ATM. Insurance is about $1400 per 6 months (4 drivers, 3 cars).
My wife and I live in So Cal and she has a Volvo XC60 T6 and I have a fully loaded 340i. Our ratio, including CA tax in the lease payments, is ~4.4% of annual gross income. Would definitely be lower if I had discovered this forum before getting my wife’s car.
Wow… great subject, awesome responses and good to see and gauge against others.
I do think there are other factors you need to keep in mind other than income when adjusting for your personal costs, but this is a good gut check for how much to spend on a car.
Personally, our car payments (two cars, one is a lease, the other a buy) puts us at about 5.5%. This will definately help me when it comes time to make a change.
I’m around 8% for 3 cars… that’s 8x the 1% rule, so I’ve failed at life.
Great thread. It motivates me to want to work harder and earn more money. On that note, anyone need a mobile app?
The 1% rule deals with monthly payment of 36/10 lease compared to MSRP of the vehicle, not how your payments compare to income. 
I know, I know. But I think we should all strive for the new 1% income rule on our next hacks
Between qx60 and civic payments including insurance is about 3.4%
You’re doing a mobile app?