How Rich Should You Be to Own a Porsche?
I still say I'm the poorest guy here. I work for the government so I will never be rich or make six figures. But considering the 997 is getting on in years and in mileage, the prices are coming down to where people like me can afford them. Btw, mine will be paid off before the end of the year. Woohoo!
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I still say I'm the poorest guy here. I work for the government so I will never be rich or make six figures. But considering the 997 is getting on in years and in mileage, the prices are coming down to where people like me can afford them. Btw, mine will be paid off before the end of the year. Woohoo!
How Rich Should You Be to Own a Porsche?
Originally Posted by speedsterr
What you say is correct but still it depends.
Here is an example for everyone.
At 200k per year let's say after tax you have between 100-120k. No one is paying taxes higher than 50%. If you are, you are in the minority and I don't care, you are an outlier and don't count.
Let's use the GTS example at 150k. No one is paying full price (if you are, then you aren't savy enough with money and shouldn't get this car in the first place). So GTS goes for around 6-8% off. So then let's say after taxes out the door you are paying around 150k for the car.
Now you can either finance or lease it. Let's go with finance. Interest rates are around 2-3%. So at 2.5% interest, 60 months, 6% tax rate, 5k down, your payment would be around 2500 per month. If you lease it is even less.
Each month after taxes you are making between 8.3k-10k per month. So this GTS is roughly 25-30% of your monthly income.
If you are single and renting say a one bed room, in my area on the east coast, a one bedroom in a nice area is around 2500 per month. So in total you are spending 5k per month in expenses. You have another 5k left over for other smaller expenses and whatever else you want to do.
So a single person in my area (which is one of the most expensive in the country) can easily afford this car and pay themselves at least 2-3k per month.
Now if you have a family, and have kids, I wouldn't do this. But chances are if you have a family, you have a significant other making at least 50k or more a year to add to your income. She definitely at 50k is not paying a high tax rate, (maybe 40% max) so that is another 2500 in your pocket. That alone is your car payment. Now you have 7500 a month to spend on your mortgage and kids. The wife can drive a cheap BMW 2 series lease at 200 per month
. If you don't have kids, it is even easier to afford it. Let's say you have a wife and have expenses of 5k per month including a mortgage. You got another 7500 each month to do with what you will. 2500 can go to the car, and 5k goes to the bank, or take half of that and spend it.
Here is an example for everyone.
At 200k per year let's say after tax you have between 100-120k. No one is paying taxes higher than 50%. If you are, you are in the minority and I don't care, you are an outlier and don't count.
Let's use the GTS example at 150k. No one is paying full price (if you are, then you aren't savy enough with money and shouldn't get this car in the first place). So GTS goes for around 6-8% off. So then let's say after taxes out the door you are paying around 150k for the car.
Now you can either finance or lease it. Let's go with finance. Interest rates are around 2-3%. So at 2.5% interest, 60 months, 6% tax rate, 5k down, your payment would be around 2500 per month. If you lease it is even less.
Each month after taxes you are making between 8.3k-10k per month. So this GTS is roughly 25-30% of your monthly income.
If you are single and renting say a one bed room, in my area on the east coast, a one bedroom in a nice area is around 2500 per month. So in total you are spending 5k per month in expenses. You have another 5k left over for other smaller expenses and whatever else you want to do.
So a single person in my area (which is one of the most expensive in the country) can easily afford this car and pay themselves at least 2-3k per month.
Now if you have a family, and have kids, I wouldn't do this. But chances are if you have a family, you have a significant other making at least 50k or more a year to add to your income. She definitely at 50k is not paying a high tax rate, (maybe 40% max) so that is another 2500 in your pocket. That alone is your car payment. Now you have 7500 a month to spend on your mortgage and kids. The wife can drive a cheap BMW 2 series lease at 200 per month
. If you don't have kids, it is even easier to afford it. Let's say you have a wife and have expenses of 5k per month including a mortgage. You got another 7500 each month to do with what you will. 2500 can go to the car, and 5k goes to the bank, or take half of that and spend it.
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I keed, I keed...
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What you say is correct but still it depends....
Here is an example for everyone....
Let's use the GTS example at 150k. No one is paying full price (if you are, then you aren't savy enough with money and shouldn't get this car in the first place). So GTS goes for around 6-8% off.
Here is an example for everyone....
Let's use the GTS example at 150k. No one is paying full price (if you are, then you aren't savy enough with money and shouldn't get this car in the first place). So GTS goes for around 6-8% off.
Thank you for your post.
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Depends
I follow the 10 percent rule. So, I won't buy a car that costs more than 10% of my annual income. I also refuse to pay interest, so i pay cash. Cars are depreciating assets and though they can provide much fun and excitement are a tough pill to swallow financially.... Holding onto a 2009 BMW 135i and a 2011 BMW X5 until something major needs repaired!
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I follow the 10 percent rule. So, I won't buy a car that costs more than 10% of my annual income. I also refuse to pay interest, so i pay cash. Cars are depreciating assets and though they can provide much fun and excitement are a tough pill to swallow financially.... Holding onto a 2009 BMW 135i and a 2011 BMW X5 until something major needs repaired!
I buy used ones to let others incur the depreciation. 😹
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Not applicable to teenagers.
I agree with buying used and will most likely go that route in the future as well. I bought a used Subaru 4 years ago and get nearly the same excitement out of abusing it that I do driving my tuned 135i all out on twisty back country roads.
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Some say it 20% of your net, others 30% of your gross. Still, I wonder how many Porsche owners here make over $1,000,000.00.
My kids are grown, I am frugal with money, and I want to retire in 1.5 years. Thus, I now buy the used ones and rebuild them as necessary.
Here is, IMO, a good article about buying cars:
http://www.moneyunder30.com/how-much-car-can-you-afford
My kids are grown, I am frugal with money, and I want to retire in 1.5 years. Thus, I now buy the used ones and rebuild them as necessary.
Here is, IMO, a good article about buying cars:
http://www.moneyunder30.com/how-much-car-can-you-afford
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I follow the 10 percent rule. So, I won't buy a car that costs more than 10% of my annual income. I also refuse to pay interest, so i pay cash. Cars are depreciating assets and though they can provide much fun and excitement are a tough pill to swallow financially.... Holding onto a 2009 BMW 135i and a 2011 BMW X5 until something major needs repaired!
Interesting approach, but most folks will never make 600k to 1M per year. On a positive note, many folks manage their income to expense ratio well. If a Porsche is something they want and can afford, then they have earned the priviledge of owning a Porsche. Percentages are important financial guides, but they are not flat and will be very different for different people depending on how they live their lives and save for tomorrow. You never know when this ride is over and I for one want to experience and enjoy it as much as possible - I feel incredibly fortunate to be driving a beautiful Porsche on this lap of my (hopefully) 100 lap ride!
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You only live once. If you can some how buy it rather than steal it, your good to go. Who cares what other
people think.
I'm not a rich man but always loved cars. Its a big part of my life that makes me happy.
Kids are out and my wife has a good job. I can't afford to buy a brand new one, but I look for
the best deal on a used Porsche.
My wife drives a 2013 BMW thats she pays 199.00 per month lease. Was a demo.
Everyone thinks she is just a rich ***** even though her friends pay that much for a nissan.
people think.
I'm not a rich man but always loved cars. Its a big part of my life that makes me happy.
Kids are out and my wife has a good job. I can't afford to buy a brand new one, but I look for
the best deal on a used Porsche.
My wife drives a 2013 BMW thats she pays 199.00 per month lease. Was a demo.
Everyone thinks she is just a rich ***** even though her friends pay that much for a nissan.
Last edited by GordieHM; Dec 13, 2015 at 07:47 PM.
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Some say it 20% of your net, others 30% of your gross. Still, I wonder how many Porsche owners here make over $1,000,000.00.
My kids are grown, I am frugal with money, and I want to retire in 1.5 years. Thus, I now buy the used ones and rebuild them as necessary.
Here is, IMO, a good article about buying cars:
http://www.moneyunder30.com/how-much-car-can-you-afford
My kids are grown, I am frugal with money, and I want to retire in 1.5 years. Thus, I now buy the used ones and rebuild them as necessary.
Here is, IMO, a good article about buying cars:
http://www.moneyunder30.com/how-much-car-can-you-afford
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I can't believe that this thread is still alive.
The original question is similar to asking things like:
- How hungry to I need to be to eat a double cheeseburger?
- How strong do I need to be to lift weights?
- How tired do I need to be to sleep for 8 hours straight?
The original question is similar to asking things like:
- How hungry to I need to be to eat a double cheeseburger?
- How strong do I need to be to lift weights?
- How tired do I need to be to sleep for 8 hours straight?
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I make far less than $1M but I went the other route -- I saved for years until I had the cash to buy a used one and was still comfortable with my retirement and emergency account balances. Then again, I always identified with Practical Pig while I saw many of my peers built their houses of straw or twigs ...
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I actually scaled down: sold the Yamaha R1, Toyota pre runner, Yamaha YZF750, 86 930 and a 74 911S. Yes... I was car crazy.. Still am.
I'm trying to sell the Landcruiser and Cherokee, consolidate by buying a V8 4Runner. I may also sell the 75 project car.
I'm 53 and I am working on retiring in 2 years... Thus, the slow selling of toys.