Quote:
Originally Posted by Craig
Hopefully true for most people, but a couple of observations;
Someone with a low six-figure income ($100-300K) in not going to accumulate wealth by buying $100K cars, the numbers just don't work. A $40K car is more appropriate.
Someone with that level of income has no excuse not to pay cash for their cars, and writing a check that large for a car will make you think twice.
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The general train of thought is this. They don't plunk down a check for $100,000 on a new car, they make payments like everyone else. The difference is that they invest what they would have spent at a rate that can potentially pay them back more then the interest on a loan would cost. So you set aside say 8% of your yearly income to making car payments. $24,000 on a yearly car payment will still get you a lot of car and what you have left over is enough to make you more money in the long run.
(Of course that's very simplified and doesn't factor in living costs but you get the idea)