Type R Owners: What's your annual income?

[SmokeGhost]

I think buying cars cash is just bad business. My opinion.

buying firearms in cash sure. They dont really depreciate unless its a hi point.

I have bought motorcycles in cash but they’re cheap enough in general.

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[RS27]

In todays car environment, the loans people are signing up for are mind boggling (im in the business). Average price of a new car last month was $47k. Like 47k?!?! Do you know how much you *should* be making to afford that car?! 100 grand. Easily. Yet everyone thinks they deserve one with a $25/hour job.

It pains me to buy cars because I *do* pay cash. Because loans are a horrible idea on depreciating time bombs. Its why I pulled my deposit on the A91 6MT last month. Writing a check for $61k would’ve been painful.

 

[RS27]

I think buying cars cash is just bad business. My opinion.

buying firearms in cash sure. They dont really depreciate unless its a hi point.

I have bought motorcycles in cash but they’re cheap enough in general.

I dont understand this logic. I mean you are going to have to pay for it one way or another. Why pay *more* for it? 7/8/9% loans?! Crazy talk.

If you got into a loan at near zero? Maybe an ok idea. But in general, loans tell people they can buy shit they cannot afford. Like, I can easily afford a payment on a 911 Turbo S. But should I buy one? No.

 

[wildbilly32]

Sorry, my example was hypothetical, not directed at you. But my goal is the same.

Sal Good Man!

 

[Neciovato]

the one thing that the current market has done to me - is force me to keep my current ride. I still enjoy it - would I like a CTR - sure but the new one - when I look at the following:
1.my car is PIF - so if I got lets say for sake of argument - $30k for my trade-in (pipe dream haha)
2. and the FL5 is costing about $60k OTD with the ADM and forced accessories - I'm still looking at a $600/mo loan for 5yrs and I haven't thought about the crazy interest rates yet -would rather put that money else where.

Also - what this current market is having me do is consider 'fun practical cars' as a daily and then look at turning my current ride into a 'project car'' or....look at some older 90s cars that are still reasonable and would be a fun project car such as the Acura RSX Type S or something like that - just something different that won't cost an arm and a leg for the initial cost.

 

[Proxkiller]

$466 (lease) with 26k residual
Got mine in September of 21 for 37k with 8 miles. Long story short they forgot to put the $13k mark up and I got lucky, had some equity in my 21 sport touring trade in.
No money out of pocket also insurance is stupid cheap I’m very lucky to have my dream car at such a great deal.
They wanted $50k otd

 

[gxl]

My Type R is an investment in terms of smiles per gallon. If I had to drive something I hate daily, I'll just drive it off a cliff to end the misery of commuting in it

 

[TheGreekFreak]

If the goal is to ultimately come out ahead, why not eat a little bit of interest and invest your money into something that will have positive returns?

Whether its stocks, real estate, small business. With a good rate and short term, you wouldnt be eating that much cost and we know the gains to be had with an investment that pays off, like real estate.

This is the mathematical answer and I'd generally agree.......if you can guarantee a rate of return well above the interest rate to make the whole process worth the effort. When factoring in that unknown + risk of losing a job, used car values plummeting, you reducing the value by damaging the car, etc you can see how buying in cash (or paying off ASAP) can be worth more than the numbers may show. Most Americans aren't good enough with money to make the risk of financing with the hope of better investment returns worth it.

Not shaming anyone, I've done way dumber things, but look at the data even from this poll: ~35-45% of the almost 400 people surveyed own a single car thats over half their annual income. Factor in a mortgage, need to save for retirement, kids, etc and the margins get very thin.

With that said, even when my income was much lower in my 20s, I always prioritized having a fun car and coworkers always assumed I financed up to my eyeballs. What they never saw was the sacrifice to pull it off. While they went out to eat X number of times a week, I meal prepped every meal. While they spent money at bars on weekends, I went to the gym. While they rented cool apartments, I lived in a basement unit. This allowed me to have a paid off car that still fit into my budget but others at my income level would have otherwise had to finance for 5+ years.

If the CTR is your dream, honestly buy it......but I'd make the equivalent sacrifices in other areas to make up for the deficit. Plus, being content with the actual purchase long term versus looking to constantly upgrade every few years helps make owning cool toys possible imo.

 

[Neciovato]

This is the mathematical answer and I'd generally agree.......if you can guarantee a rate of return well above the interest rate to make the whole process worth the effort. When factoring in that unknown + risk of losing a job, used car values plummeting, you reducing the value by damaging the car, etc you can see how buying in cash (or paying off ASAP) can be worth more than the numbers may show. Most Americans aren't good enough with money to make the risk of financing with the hope of better investment returns worth it.

Not shaming anyone, I've done way dumber things, but look at the data even from this poll: ~35-45% of the almost 400 people surveyed own a single car thats over half their annual income. Factor in a mortgage, need to save for retirement, kids, etc and the margins get very thin.

With that said, even when my income was much lower in my 20s, I always prioritized having a fun car and coworkers always assumed I financed up to my eyeballs. What they never saw was the sacrifice to pull it off. While they went out to eat X number of times a week, I meal prepped every meal. While they spent money at bars on weekends, I went to the gym. While they rented cool apartments, I lived in a basement unit. This allowed me to have a paid off car that still fit into my budget but others at my income level would have otherwise had to finance for 5+ years.

If the CTR is your dream, honestly buy it......but I'd make the equivalent sacrifices in other areas to make up for the deficit. Plus, being content with the actual purchase long term versus looking to constantly upgrade every few years helps make owning cool toys possible imo.

I think that last part is the most important - now days with so many outlets to entertainment and information - it always seems like we are being told 'buy buy buy' and pretty much every car I have owned has been a 'I'll keep it till the wheels fall off' - then something new and better comes out which makes me want it even more - so I 'rinse and repeat'. Anyway - I agree with a lot of what you have written - its definitely good to look at ways you can save as well as prioritize what you find important and cut back from other areas where it allows for you to save etc.

 

[wildbilly32]

My Type R is an investment in terms of smiles per gallon.

THAT'S WHAT I'M TALKIN' 'BOUT!!!

 

[Mufasa]

Nice job bringing this thread back to life lol. There are some crazy low gross income data points on the survey results. I don't know how you'd live with this car knowing it cost your entire salary or close to it. I got lucky getting a house with a 2.325% 30 year mortgage in 2020 and a 2.39% car note with 50% down. If I lost my job I could work at trader joes or something and meet all financial obligations - won't be saving shit though. Some y'all Mfers are crazy . Money in >>> money going out to the man.

That said I agree with @TheGreekFreak. I lived in a Harry Potter style room for years post college that was barely enough to fit a full size bed in it, drove the same car from high school, barely ate out, and the only thing seen in my hand at a bar was a cold $2 Miller High life. That got me the bread quickly to then buy a car in cash, a home a year later, and then sold the car to buy the CTR the year after that. I just turned 30 two weeks ago and almost all of my friends now are still renting, don't have a fun car, little to no retirement savings, and blow all their money at the bar. Financial discipline doesn't seem to be practiced much as its hard with social media posturing and keeping up with the jones's.

 

[AlphaDigital]

Nice job bringing this thread back to life lol. There are some crazy low gross income data points on the survey results. I don't know how you'd live with this car knowing it cost your entire salary or close to it. I got lucky getting a house with a 2.325% 30 year mortgage in 2020 and a 2.39% car note with 50% down. If I lost my job I could work at trader joes or something and meet all financial obligations - won't be saving shit though. Some y'all Mfers are crazy . Money in >>> money going out to the man.

That said I agree with @TheGreekFreak. I lived in a Harry Potter style room for years post college that was barely enough to fit a full size bed in it, drove the same car from high school, barely ate out, and the only thing seen in my hand at a bar was a cold $2 Miller High life. That got me the bread quickly to then buy a car in cash, a home a year later, and then sold the car to buy the CTR the year after that. I just turned 30 two weeks ago and almost all of my friends now are still renting, don't have a fun car, little to no retirement savings, and blow all their money at the bar. Financial discipline doesn't seem to be practiced much as its hard with social media posturing and keeping up with the jones's.

I have a coworker that built his house at 1%, fucking wild. Im happy with my 3%.

Also, id still be drinking high life. Hell, I drink Naturdays for fun and PBR at the bar when I can.

 

[RepublikaSrpska]

I have a coworker that built his house at 1%, fucking wild. Im happy with my 3%.

Also, id still be drinking high life. Hell, I drink Naturdays for fun and PBR at the bar when I can.

Steel reserves all day

 

[AlphaDigital]

Steel reserves all day

even I have a line I cant cross.

 

[RepublikaSrpska]

even I have a line I cant cross.

Oh come on man after a couple youre so shitfaced you cant even taste em’

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