For those who own cars.......

  1. What is your total income?

  2. Do you buy or lease?

  3. What is your monthly payment?

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Comments (40)

  • Summer Associate in IB - Cov
May 6, 2021 - 12:55am

Unless you keep cars a long time, you are basically renting it from the bank anyway. 

this post wasn't about rent/lease. More curious what people are spending on their cars. 

May 6, 2021 - 7:03pm


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May 6, 2021 - 12:57am

Look @ lease takeovers.  Specific brands like BMW and cars between $60k - $150k are best for this because a lot of young males with their first or second real job buy $$$ cars, then realize they can't afford  them and dump the lease inexpensively.

May 6, 2021 - 3:35am

So I have been working on cars for a very long time, started at age 13. My uncles and father were always into cars.
I buy luxury cars that were slightly damaged (ie fender, hood, lights, wheel, busted radiator, etc) at a huge discount and fix them myself. After paint and parts I normally end up with a 20-25% profit. I could paint parts on my own, but it is more cost efficient if I do this externally. I don't work on cars full-time.
Recently I had BMW M4, Continental GT, and a Porsche Cayman.

re: leasing vs financing vs cash vs pre-paid lease vs. rest
- I have never owned a car I didn't pay for outright in cash. Either that or I got the car for free through family members.
- If the income derived from the car usage is higher than fees/interest/cost of ownership, then it may make sense to lease it. In this case you won't be able to change anything on this vehicle since it has to be returned stock when the lease ends. If driving a car is just usage for you, maybe leasing is for you. Kind of a long-term rental with a few things you have to do yourself.
- semiconductor shortage: in some markets and on some models the demand is higher than supply because of manufacturing and supply chain issues.

May 6, 2021 - 3:37am
  1. What is your total income? not enough

  2. Do you buy or lease? lease

  3. What is your monthly payment? way too much

thots & prayers

  • Prospect in IB - Gen
May 6, 2021 - 9:53am

you're missing the biggest question -- how much do you need a car? 

Where do you live? Do you have a family?

And purpose of car -- for enjoyment or for transportation

  • VP in PE - Other
May 6, 2021 - 11:01am

Will need to buy a car soon, but below is based on what I plan to do. Aiming to spend $25-35k on a car.

What is your total income? ~$150k-175k salary (excluding bonus)

Do you buy or lease? Plan to buy

What is your monthly payment? Hoping for ~$500 of interest + amort w/36 month term (I intend to put 30-50% down / I'm pretty risk averse)

May 6, 2021 - 3:56pm

You bought the car yet you have a $500 monthly payment for what?

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

May 7, 2021 - 5:45pm

Would love to see you siphon electricity out of an abandoned vehicle as zombies close in on your family, pal


Look at all these wannabe richies hating on an expensive salad.
May 7, 2021 - 9:37am

Total income: c. $375-$400k

Bought it: ~$50k with roughly $30k financed at an egregious 6% and a massive term (6 yrs)

~$600 monthly payment

Could have bought it all cash and considered doing so. Logic on the crazy financing was that I could get more than 6% on that $30k that I was borrowing against the vehicle and I have done multiples of that. I still hate the fact that I'm paying 6% APR on this loan and want to take it all out in one go out of principle.

Most Helpful
May 7, 2021 - 11:43am

There's some nuance behind the APR.

My credit score in the US was low 800s and in Canada (where I bought it) is currently high 700s. Not sure how much experience you have with car loans, and don't wanna come off as condescending or patronizing, but 6% was only ~1% above market at the time. Every single major bank was offering 6%. Coulda found lower APRs from "boutique" sources of financing, but would have paid more sticker in doing so. 

I had just moved back to Canada when I bought it, and hadn't had a Canadian income in a few years. Financing came from my bank that I used across border, but couldn't use my US credit for obvious reasons. Bought it during the pandemic when there was a "shortage" of the type of vehicle I got and the used car market was white hot so I guess banks were gouging people. I also wanted to use the loan to help speed up my CAD credit building too and its much 'cleaner' for me to have the loan from the bank I bank with. I coulda bought it outright and had demonstrated this along with my US income to my bank but they wouldn't budge.

What I SHOULD have done is taken out a LoC from the same bank and used that rather than a standard car loan. LoCs were lower APR. Oh well. the difference is literally $2,000 over 6 years. 

Everybody freaks out over the 6% APR, and I get it. It's a bit wack when rates are so low.. but it's a few thousand dollars over 6 years in exchange for me being able to put the $30k of capital to work in the stock market and I've done very well since then (as has literally everybody, lol) so I am not at all bothered by it. I wouldn't recommend taking a 6% APR to most folks but given that its a rounding error in my monthly expenses and income I didn't really blink at it. 

  • Associate 1 in RE - Comm
May 7, 2021 - 12:50pm

I've never bought a car, I just know my parents got essentially a 2.0% rate when they bought theirs and paid it down as soon as they were allowed to

I currently rent a car (basically lease month to month) for about $200 more than you're paying per month. I'm sure this isn't the most financially sound thing to do either so I'm not judging

May 7, 2021 - 2:24pm

Yeah my dad laughed at me when I told him I financed at 6% lol.

Renting a liability isn't necessarily any worse than buying one... but people generally get too up in arms about rent vs lease vs buy etc. I for one have zero regrets about buying. We in this industry are very fortunate to be comped as well as we are where a reasonable car payment isn't going to make a major dent in our monthly savings/expenses

May 7, 2021 - 5:46pm

id refi but im 3 years behind on taxes whoops


Look at all these wannabe richies hating on an expensive salad.
May 7, 2021 - 12:59pm

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