Type R Owners: What's your annual income?

Annual income before taxes?

  • $20K-$30K

    Votes: 20 5.0%
  • $30K-$40K

    Votes: 18 4.5%
  • $40K-$50K

    Votes: 29 7.2%
  • $50K-$60K

    Votes: 39 9.7%
  • $60K-$70K

    Votes: 33 8.2%
  • $70K-$80K

    Votes: 43 10.6%
  • $80K-$90K

    Votes: 37 9.2%
  • $100K-$125K

    Votes: 56 13.9%
  • $125K-$175K

    Votes: 54 13.4%
  • $175K-$200K

    Votes: 18 4.5%
  • $200K+

    Votes: 51 12.6%
  • $90K-$100K

    Votes: 6 1.5%

  • Total voters
    404

SilentMonkCTR

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I agree with this 100%.... It's crazy to think that a 40k car is the tipping point.... but in reality... it kind of is... I remember when I bought my Jeep Cherokee and financed 35k.... I thought I was stupid to finance that.... but I could afford it, granted I HATED the car simply for the transmission. I am now happy with my CTR and I am contemplating buying a daily driver....

I realize what is possible because I play baseball.... I say this because near the field I play at in Pompano Beach has a Porsche Cayman. This house looks like its a SLUM... I cannot make this up and if I took a picture you'd agree..... I know the car is more important to this individual than where they live.... but to each their own.
So this really requires an in depth response. I'm not that guy. However South, FL has literally the worst cost of living to median income in the country at the moment. Middle class is $45k-60k per person if I'm not mistaken. Average home rent is $1800-2200. Average apartment is $1500ish maybe more. So you have three options for someone in that class. Option 1) live in a house that's a little beat up and have a nice car. Maybe you have a job where you meet with clients and they need to see that to feel comfortable, etc.. Option 2) you managed to save $25k and put a down payment on a house, avg price there is $300k+ unless you're in the hood. Now all your money goes to INS, mortgage, taxes, etc.. Option 3) you live in a cheaper home like a pre-manufactured or mobile home where monthly nut is say $1100 and you spend $650 a month on your car because you like nice cars for whichever reason. To me none of these are wrong. It's unfair to say opt 1 guy your dumb because you choose to live in a cheap beat up house and have a nice car to make you happy . It's also unfair to say opt 2 guy you did the right thing by dumping your savings and stretching yourself so thin monthly you may lose everything if you lose your current employment for any reason. Its also unfair to say opt 3 guy you're dumb because you choose to live in a trailer and have a nice car so you can enjoy your life. At the end of it all we only have one life and you should enjoy every moment you can.

Side note. Housing prices are so out of whack. A friend of mine has owned his mobile home since 2000. He paid $3500 for it and still pays rent for the land it sits on till this day. His old shitty trailer can bring $45-55k just to rip it out and put a nice new one on that same spot. South, FL is a crazy place right now.
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Daniel644

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Man I don't see how anyone making 20-30k pre taxes can afford even a used base model 10th gen (and at least 50k a year to afford a Type R), them folks must be living at home with mommy and daddy and/or mommy/daddy bought them the car, when I was a 18-19 and making that kind of money there was no room for a monthly car payment after setting aside $80 a week for rent (with utilities included) and covering food and gas and all that, even today between taxes and cost of living I have (which is pretty damn low) there would be basically no money left at that earnings level if I was still there, I know this because I know how much I can save on average in a given year with no car payment and still cover my cost of living and I don't have any dependents. Anyone making under 50k a year owning a Type R is upside down on the loan and should rethink where they are spending their money IMHO.

820.37 to be exact.
9 percent interest and was 41k for the car. 3k roll over from my 18si and gap just in case. 45,5 loan. Still paying extra and work bonuses going to on it every year.
9 percent holy fucking shit how bad is your credit? I got 2.74% rate on a USED car. did you do dealer financing or something?
 

Daniel644

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I’m gonna get smacked no doubt by saying this, but I put 14K down and financed 32.8k at 4.49 for 72 months. How did I finance so much still with a huge down payment? Well, I didn’t expect to (stupidly) roll in 6 grand of negative equity (so much for resale value!) on my 2017, and after you add taxes and title... mhm, yeah.

I found my original budgeting sheet and my original thought was I was only gonna have $1.5k of negative equity (again, not ideal). Then I panicked at the table and my “I want it” side completely overcame my “hold on think this through” side.

I get why so many people are screwed with their car. It’s really easy to do so, and then you’re stuck with it (unless you buy something that retains its value super well).
why would you trade in a car you where upside down in to get a 1 year newer car? live with the first one till you aren't upside down and DON'T take long term loans, even a low interest rate adds up when you start getting into 6 year loans, if you can't pay off a car within 5 years you flat out CANNOT afford it, ideally you want to get into a position where you can pay it off in 3 years, this gets you the best interest rates and you are only upside down in it for like the first 6 months to a year. It's just bad financial move to do what you did and you are gonna be paying for it for years.
 
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Zeffy94

Zeffy94

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why would you trade in a car you where upside down in to get a 1 year newer car? live with the first one till you aren't upside down and DON'T take long term loans, even a low interest rate adds up when you start getting into 6 year loans, if you can't pay off a car within 5 years you flat out CANNOT afford it, ideally you want to get into a position where you can pay it off in 3 years, this gets you the best interest rates and you are only upside down in it for like the first 6 months to a year. It's just bad financial move to do what you did and you are gonna be paying for it for years.
I didn’t have restraint when I did it. It was a high pressure situation - here I was, with a car that the dealer secured for me that (at the time, at least) was fairly low volume and I had assumed I would’ve had a lot less in neg equity than I did. When I got to the table I panicked when I realized I was way off budget (I mean, even if I didn’t have all the neg equity I would still be looking at a rather high payment) and my mind was stuck between “I really want this” and “that’s too expensive”. Unfortunately like many others who would be in this position instead of backing away I took it.

Looking at it almost 2 years later I was easily ripped on my trade and there were other small markups built in. I wish I had not bought this car because I wouldn’t be in such a precarious spot but at the same time the car experience of owning it has offset it at least.

But, my issue is that my value is significantly lower due to an accident showing up that was a year ago. It’s killing trade and resale value. If I had to let it go I would most likely have to try and do a private sale but seeing as how my time is already condensed due to work and whatnot that would be hard to manage. If I didn’t have the accident on it I would easily be able to walk away, but that accident is playing hell right now.
 

jayevo23

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I didn’t have restraint when I did it. It was a high pressure situation - here I was, with a car that the dealer secured for me that (at the time, at least) was fairly low volume and I had assumed I would’ve had a lot less in neg equity than I did. When I got to the table I panicked when I realized I was way off budget (I mean, even if I didn’t have all the neg equity I would still be looking at a rather high payment) and my mind was stuck between “I really want this” and “that’s too expensive”. Unfortunately like many others who would be in this position instead of backing away I took it.

Looking at it almost 2 years later I was easily ripped on my trade and there were other small markups built in. I wish I had not bought this car because I wouldn’t be in such a precarious spot but at the same time the car experience of owning it has offset it at least.

But, my issue is that my value is significantly lower due to an accident showing up that was a year ago. It’s killing trade and resale value. If I had to let it go I would most likely have to try and do a private sale but seeing as how my time is already condensed due to work and whatnot that would be hard to manage. If I didn’t have the accident on it I would easily be able to walk away, but that accident is playing hell right now.
Don't beat yourself up about it. As the old saying goes, no point in crying over spilled milk. We all know that feeling of being pressured by the dealer and that's their goal to force you into a situation without you entirely thinking it through. It happened to me along with many others which is why online dealerships such as Carvana are so popular these days. All you can do at this point is learn from it and move forward.
 


cammyfive

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“People love to brag about how much they pay for their house and how little they pay for their car”.

Threads like this are interesting because in the grand scheme of things the CTR is not a very expensive car considering that it’s pretty close to the average price of a new car in 2019 and close to the price of a loaded midsize crossover.

https://www.google.com/amp/s/www.cn...easing-heres-why-thats-bad-for-americans.html

While informative, someone’s income doesn’t tell you a lot about how a CTR affects them financially given the amount of debt they have otherwise. My other half and I make almost $200k/yearly with no other debt to speak of but I decided on an Si because it was the sweet spot of value for me and I want to buy a second car like an S2K or first gen NSX this upcoming year, not to mention that we have financial goals we are on track for that don’t allow for a car payment.

All that being said, no car should be more (total
purchase price) than 40-50% of your post tax/net yearly income. If you finance it, the payment should be 10% max of your take home monthly income. If not, you’re just chaining yourself to more than you can afford like most of America.
 

arpypat

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“People love to brag about how much they pay for their house and how little they pay for their car”.

Threads like this are interesting because in the grand scheme of things the CTR is not a very expensive car considering that it’s pretty close to the average price of a new car in 2019 and close to the price of a loaded midsize crossover.

https://www.google.com/amp/s/www.cn...easing-heres-why-thats-bad-for-americans.html

While informative, someone’s income doesn’t tell you a lot about how a CTR affects them financially given the amount of debt they have otherwise. My other half and I make almost $200k/yearly with no other debt to speak of but I decided on an Si because it was the sweet spot of value for me and I want to buy a second car like an S2K or first gen NSX this upcoming year, not to mention that we have financial goals we are on track for that don’t allow for a car payment.

All that being said, no car should be more (total
purchase price) than 40-50% of your post tax/net yearly income. If you finance it, the payment should be 10% max of your take home monthly income. If not, you’re just chaining yourself to more than you can afford like most of America.
That 10% is a real good rule of thumb. Most people don't think that way.

Sure, I could've bought a type R if I wanted to, but got an Si instead. Living in the Midwest and making just about $100k, most people in my shoes would've splurged on a $40k car...

But after fed+state+locality income tax, 10% 401k deferment, high-deductible health care plan and other withholdings, the Si is just about 8-9% of my take home pay. Once you add up all car-related expenses like car insurance, gas, car washes, misc maintenance and upgrades, that number could easily swell to over 15% for me with an Si. That number would jump to 20%-30% if I had a Type R since EVERYTHING is more expensive on the Type R compared to any other civic.

It would be interesting to see a poll on how much people spend on their Type R annually, counting ALL car-related expenses, not just their monthly payment.
 

BrokeCTROwner

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I literally read the choices three times and didn't catch that, oh well, I added it but it's at the end of the choices



Who needs a house when you have a Type R?!

...that's the kind of thinking that got me into my situation in the first place
You can sleep in a car but you can't race a house
 

RS27

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Fiancé and I range from $250k-$300k combined annually. I’m 140-170k of that. Our cars? 18 civic LX 6MT, 18 Accord Sport. Both paid for. No loans. I would’ve bought an R years ago. But In Hawai’i? Lol @ pricing here. Not paying over sticker for ANY car.
 

LSUFANDAN

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Traded in a 2014 Chevy Silverado Z71 that was paid off($20k trade in). Put $6k down. Paid pretty much sticker price. Maybe a little under sticker. Got tire warranty, extended warranty. Payment is $398 per month on 4 year loan at 2.9% interest. I think I can afford that
 


Neciovato

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The hardest part with anything is controlling our wants especially when it comes to being a car enthusiast. I know right now I am fighting with myself as to whether or not to go ahead and pull the trigger and trade in my current ride - and use the the trade in as the down payment - right now I feel I can have close to 11k to be used bc of the trade in. The issue is that this would put me on the car payment merry-go round for minimum 3-4yrs vs being able to pay off my current ride by the end of this year. The messed up thing is that I really do like my current car. It’s not as fast as the CTR but it is just as balanced and has the fun factor associated with it as well.

What I keep telling myself is that ‘you can do a lot with 3yrs worth of payments’ in investments or in a bank like Ally where you can gain close to 2% on interest vs putting that toward a depreciating asset.
 

Hollywoo0220

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Enough to take care of every other financial obligation/responsibility with enough left over to plan for the future and do other activities other than take care of a vehicle.
 

arthyols

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I see it's been a while, but I want to add my two cents. Personally, I don't think annual income should be the sole determining factor in whether or not someone can afford a car. There are many other factors to consider, such as monthly expenses, debt, and personal priorities. Moreover, there are apps like paycheck maker, which make money management more effective. At the end of the day, everyone's financial situation is unique, and it's up to each individual to make the best decision for themselves.
 
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Neciovato

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I see it's been a while, but I want to add my two cents. Personally, I don't think annual income should be the sole determining factor in whether or not someone can afford a car.
It's the whole 'rich vs wealth' argument? For while someone might be considered rich making a certain amount - but....if they spend as much if not more than then they bring home - with little to know investments for the future - they might be much worse off than someone who is making significantly less yet is able to save a larger % of their income.
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