Quote:
Originally Posted by ah-kay
This figure is NOT conservative enough. If you read most financial books, they only recommend you to spend about 5% of your NET WORTH on cars. That is you need to have $1M to buy a $50K MBZ. It would be bad news for the car companies as no one would be driving expensive cars.  . But very few people follow the recommendation.  |
I agree in principle, but many/most people (especially kids) don't really have any net worth and they do need some kind of transportation. In reallity a non-DIYer probably needs to spend at least $5k to get a decent late model car that doesn't need constant attention. I expect to spend about $10-15k on a first car for my kids so they have something reliable enough to last a few years until they can pay cash for a replacement.
For myself, I prefer old cars but there is no way my daughters would be able to keep one on the road without spending a small fortune on maintenance/repairs.
10-16-2009, 02:37 PM
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