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

davemarco

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I make good money (6 digits), and my lady and I are DINKs (double income, no kids), and I still find it insane that some people are paying 600+ a month on a car note. Honestly I've never had a car note though, this is my first new car. Well, I did get a loan for this one but paid it off in full the first month - only got the loan so I could pay it via credit card to get points.
Likewise - dual six figure income household, no kids. I'd never pay that much per month (particularly for 72 months or longer), because it likely implies that I'm going to get slammed with interest over the life of the loan. I pay $340 a month on a 5 year note. If the market continues to suck like it has, I may just pay it off completely to avoid unnecessary interest expense.
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iLovePho

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Not surprised at the results. This is an enthusiast's car after all, so it makes sense that it would appeal to a wide range of people. Think of it like a VW GTI, Mini Cooper, or Jeep Wrangler.
 

17CivicTypeR_Brian

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I used household income not just my income.

But to add to what others have said - 100k here in York PA is WAAAY more than 100k in Cupertino or Manhattan!
 

SilentMonkCTR

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Likewise - dual six figure income household, no kids. I'd never pay that much per month (particularly for 72 months or longer), because it likely implies that I'm going to get slammed with interest over the life of the loan. I pay $340 a month on a 5 year note. If the market continues to suck like it has, I may just pay it off completely to avoid unnecessary interest expense.
A few thousand dollars over 5/6 years. I'm sorry but that's chump change when the alternative is you have to take all the money you have saved up and plop it down to buy a CTR. Talking about middle class hard working people. Majority are just trying to enjoy their lives. Your view comes from being as well off as you guys/gals are. You are a small fraction of people in the country that own $40k vehicles. Not attacking you for being well off. I happy you are. Just stating that a lot of people pay that interest so they can enjoy their lives and to them it's a small cost.
 


yargk

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A few thousand dollars over 5/6 years. I'm sorry but that's chump change when the alternative is you have to take all the money you have saved up and plop it down to buy a CTR. Talking about middle class hard working people. Majority are just trying to enjoy their lives. Your view comes from being as well off as you guys/gals are. You are a small fraction of people in the country that own $40k vehicles. Not attacking you for being well off. I happy you are. Just stating that a lot of people pay that interest so they can enjoy their lives and to them it's a small cost.
If you're paying less than about 4%, sure. However, if you're paying more than 4% interest, then that's not good (in this market). If a purchase of a car is difficult enough that a loan is required, then a few thousand extra payment dollars over the course of a loan with a bad rate should be more valuable to you, not less. There are loans available that have very low interest rates and it's better in the long run to get a 60 month loan with a 4% interest rate or less than a 75 month loan with practically any interest rate that is higher. Don't focus on monthly payment, focus on how much you'll pay total.

This is what is called a poverty trap. That is, you can't afford to do a short loan or a loan with a good interest rate, so you get a long loan with a bad interest rate that ends up costing you more money.
 

SilentMonkCTR

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If you're paying less than about 4%, sure. However, if you're paying more than 4% interest, then that's not good (in this market). If a purchase of a car is difficult enough that a loan is required, then a few thousand extra payment dollars over the course of a loan with a bad rate should be more valuable to you, not less. There are loans available that have very low interest rates and it's better in the long run to get a 60 month loan with a 4% interest rate or less than a 75 month loan with practically any interest rate that is higher. Don't focus on monthly payment, focus on how much you'll pay total.

This is what is called a poverty trap. That is, you can't afford to do a short loan or a loan with a good interest rate, so you get a long loan with a bad interest rate that ends up costing you more money.
Ya but even at your rates it still only costs a couple of thousand more. So most people are making $45-60k a year who are taking those loans. While it may cost a little more. It's still enables them to have the car they want compared to living another five years of life driving a base model hating it. Also what is the refi rate of people who actually see those loans completely through? I would imagine at least 30-50% refi their rates down or sell the vehicle.
 


yargk

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I preached this all day and then I was quoted 3.0%@60mos.

You bet your ass I put nothing down. I'm matching inflation just making my monthly minimum.

I make about $150k, and sure, maybe I could afford more car but I've always been a huge Honda fanboi and if you want more Honda, you're looking at an NSX which is almost an order of magnitude more expensive. The Type R is a great mix of inherently valuable, hugely important to a brand I like, and actually extremely practical every day. It beats the hell out of the Fiesta sFe I traded in for it in every way except MPG, but I doubt I'll ever drive anything as efficient as that 999cc 3 cylinder ever again.
3.0% is great, nice work!
 

yargk

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Ya but even at your rates it still only costs a couple of thousand more. So most people are making $45-60k a year who are taking those loans. While it may cost a little more. It's still enables them to have the car they want compared to living another five years of life driving a base model hating it. Also what is the refi rate of people who actually see those loans completely through? I would imagine at least 30-50% refi their rates down or sell the vehicle.
Understood. I'm just saying get the 3% or better loan if you can. 3% on a 60 mo. 35k loan will pay about $2734 in interest. 2 % would be about $1808. However, a 7.5% loan for 75 months would pay $8,949. Don't do that.
 

davemarco

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A few thousand dollars over 5/6 years. I'm sorry but that's chump change when the alternative is you have to take all the money you have saved up and plop it down to buy a CTR. Talking about middle class hard working people. Majority are just trying to enjoy their lives. Your view comes from being as well off as you guys/gals are. You are a small fraction of people in the country that own $40k vehicles. Not attacking you for being well off. I happy you are. Just stating that a lot of people pay that interest so they can enjoy their lives and to them it's a small cost.
Fair enough. I suppose that my argument is that those who can only afford to take 72+ month loans with very little down shouldn't buy $35000+ cars period. It seems like a recipe for never getting ahead, but to each their own, I suppose. A $200K a year household is smack dab in the middle class (the buying power of a six figure income is nowhere near what it used to be) and $20k down is nothing if it saves me more than it costs me (in market opportunity cost).

On the flip side, I would never have put so much down if the market was booming. I'd just rather absorb less interest right now than take a 2.5% 15 month CD (or whatever the going rate is).
 
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Zeffy94

Zeffy94

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Fair enough. I suppose that my argument is that those who can only afford to take 72+ month loans with very little down shouldn't buy $35000+ cars period. It seems like a recipe for never getting ahead, but to each their own, I suppose. A $200K a year household is smack dab in the middle class (the buying power of a six figure income is nowhere near what it used to be) and $20k down is nothing if it saves me more than it costs me (in market opportunity cost).

On the flip side, I would never have put so much down if the market was booming. I'd just rather absorb less interest right now than take a 2.5% 15 month CD (or whatever the going rate is).
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).
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