How much of your annual income did your NSX cost you?

[mdb]

I'm sure it did.

The argument was brought up and meant in the context... (clip)

Understood ya completely, and I agree as well (that you should examine your priorities if its coming to that). There had just been so many serious posts in a row...

 

[Psycnosis]

Don't work for a car that's dumb. Also how many people do you know where the car costs the same as what they make a year? I hope not too many.

The company provides me with a daily driver, I also have an Integra that has been paid off for sometime now. Having previously been living off a college income, $600 is more than enough left over for food and entertainment per month, but then again I would have to give up other luxeries a new grad like me should be enjoying, like new HDTV's, home theature stuff, etc, You make some very valid points though. It would be nice to be out of debt for a change.

 

[Psycnosis]

You think the NSX is bad, you should see some of the Mitsu Evo owners, one had too sell his car because they cut out overtime at his work. lol That to me is just crazy, and if you live for a car you need to find something in life to make you happy and for me it will NEVER be a car that I have to work 2 jobs and if I get a flat I am screwed.

I'm sure it did.

The argument was brought up and meant in the context of a direct consequence of not being able to afford anything else besides fast-food. Anyone who loves fast-food and drives his/her NSX at the drive thru is a free man/woman to do so. Anyone who starves him/herself and can only afford fast food due to his/her expansive toys, needs imho, to rethink his/her priorities.

 

[ricdanger]

Hey... sounds like you can JUST afford it now... you've got a good career happening so your incomes only going to go up.

Houses etc can come later IMHO. If you get a car that is already massively depreciated then if you have to sell it you'll lose a bit of cash but that will be a small cost when you consider the fun you got from the car.

My advice is to follow you heart not your head. The "quality of life" and "fun-factor" that the car will bring will be well worth it.

$0.02c (tax free)

 

[ss5153]

You only live once!!!

Wow, you sound just like me! I bought my used 1996 NSX last year when I was 24 years old. Paid half cash/half financed through my local credit union. (Most credit union will finance any year old cars.) I make about 40K a year and live with parents. I was also able to afford a brand new Toyota Highlander for commute. The NSX is my weekend toy. But I gotta tell you this.... before I bought it, I want it so bad, I told myself that I'm willing to do anything for it (even if I have to work 2 jobs, more OT etc...) But now that I own it... I don't get that urge anymore, but everytime I go to my garage and look at my NSX, I just smile! All the hard work is worth it! Everytime I drive it, I LOVE IT! Before buying my NSX, my parents and co-workers always told me to save money for a house or something... but that's just not me... working for 4-5 years to save enought for downpayment for a house, and continue to pay for it the next 30 years!!! You only live once! And no one can predict the future. Live everyday as if it's your last.... that's just me.

 

[Psycnosis]

Re: You only live once!!!

So you have 2 nice cars and live at home Where do you go if you go on a date, or want to get away? I hope the ABS does not go out $1500, or something fails. I can't say too much I was 22 when I bought my nsx but I did make over 2x what the car costs but was renting a house with a few friend. So 40k a year = about 2300 a month bring home, and your car is about 350 a month so that is not too bad. Same as making 80k a year I guess.

Wow, you sound just like me! I bought my used 1996 NSX last year when I was 24 years old. Paid half cash/half financed through my local credit union. (Most credit union will finance any year old cars.) I make about 40K a year and live with parents. I was also able to afford a brand new Toyota Highlander for commute. The NSX is my weekend toy. But I gotta tell you this.... before I bought it, I want it so bad, I told myself that I'm willing to do anything for it (even if I have to work 2 jobs, more OT etc...) But now that I own it... I don't get that urge anymore, but everytime I go to my garage and look at my NSX, I just smile! All the hard work is worth it! Everytime I drive it, I LOVE IT! Before buying my NSX, my parents and co-workers always told me to save money for a house or something... but that's just not me... working for 4-5 years to save enought for downpayment for a house, and continue to pay for it the next 30 years!!! You only live once! And no one can predict the future. Live everyday as if it's your last.... that's just me.

 

[huckster]

All of my vehicles (three currently) combine to about 16% of my net income. Ive been running this percentage for the past five years, even though ive traded cars about six times during that period.

Id be a hypocrite to say 'be frugal' because ive wasted tens of thousands on cars. But nice vehicles are my wasteful indulgence.

However, i do believe that house ownership should come first. Housing is the only thing you have to have that actally accrues value, unless of course you buy a box and choose to live in/around your city's park.

 

[nsxchi-town]

it depends on the person

hey all,

It all depends on the person, Most people looking too buy a nsx do make a good income... However what is a good income...

Just my .02 cents.. I went to college just a couple hours away from home so lived aways from home for 5 years(yes took me alittle longer) and summers too.. After school i moved back home with my parents, got a job and saved some$$$$..But after a years i had some $$$ saved so what did i do i bought a car in 95,
it was a legend coupe blk/blk and i wanted it so bad, it was like 40k brand new and thouhgt how the hell was i going to pay for it,
so i started looking a came across one in the end of the summer with 28k on it for 29K so i was all overit... it was 480 a month plus i put 5k down..i still have the car todays i it has 172,000 on it now..so 480 a month on a car, insurance and gas was all i needed. living with parents for me was great, it was really great,
i missed my family and my parents aloud me to save some money.
it depends on your relationship with your parents, mind are the best(to me) most of my friends right after college got jobs and a partment and stiil till this day most of them still live in a apartment.
While living with my parents for almost 8 years after school, i had the chance to save money and save on insurance(under one plan) so i bouhgt a s2000(in 2000). afther that car , i had money in the bank to buy my first home in 2002.... as i just got my nsx a week ago, As you can tell i love honda and whated them so i was willing to do what ever i had to to get them...(2nd job, live with parents, caddie on sundays..etc.etc.. what ever i could do to make extra $$ (legaly..).i even found out when i bouhgt my s2000
that if i refer some buyers that i get $100 cash for referal fee..(wow) that same month i help them sell 8 cars to my friends and family...funny was i outsold 3 salepeople there and they wanted me to sale cars there..(fuunnyy)

WEll my point was:sorry took so long, but if you really want something all you have to do is work for it...thats all>>>
do only the things you can control. Such as working you control how much you can work and how much income you an earn..Some people where lucky in life,,but most have worked hard for everthing they have... you can never get anything for free.(unless its from your parents)

so in closing ,, if the nsx is something you want and you are willing to do anything to get it and keep it ,, then i sya go for it, if not maybe it better to wait..

thanks for reading.

 

[mlambert890]

I agree with the general tone of the posts here... Definitely hold off for now (if you havent made the decision yet).

I think some of the advice is very regional though. SteveNY mentions flipping a house for an $85k profit in 9 months.

Think about what that means...

A new kid out of college basically needs to escape certain regions as fast as possible I guess. There's no way ANY normal kid "right out of college" is ever going to afford tri-state real estate anytime soon. The real estate is appreciating FAR quicker than their salaries will. They'll save until they die and never do it.

So I'm not so quick to judge todays college kids and I dont have easy answers for them. Me? Even at 33 I cant deal with the NYC area and I'm relocating ASAP. The old "buy a house first kid!" advisory just isn't really possible anymore in most of the US metro areas where a "house" is $200k for a POS starter easily.

I guess the best advice for kids graduating in any big metro area without a silver spoon is "run away fast!"

The other thing is this whole 33% rule. Are people implying that the total cost of the car shouldnt be more than 33% of your annual NET income? That would mean that no one with less than a $270,000 per year NET income (or a $600k gross basically) should even consider a new NSX. I find that HUGELY unrealistic, but maybe Im misunderstanding the argument.

 

[PHOEN$X]

The other thing is this whole 33% rule. Are people implying that the total cost of the car shouldnt be more than 33% of your annual NET income? That would mean that no one with less than a $270,000 per year NET income (or a $600k gross basically) should even consider a new NSX. I find that HUGELY unrealistic, but maybe Im misunderstanding the argument.

I think you misunderstood. We're talking about monthly expenses here (mortgate payment, car payment, etc.), not out-the-door cost. Per CCCS guidelines:

The Consumer Credit Counseling Service recommends keeping your debt-to-income ratio below 15 percent. If your ratio is lower than 20 percent, chances are you will be granted your car loan, but you should do more figuring to determine if you really can afford it.

You know the details of your expenses and budget better than anyone else. So be careful about accepting higher limits too quickly. After all, a new car should compliment your lifestyle, not compromise it.

 

[huckster]

Take your true net income(not gross), take out utilities. Look at your current debt/monthly obligations for charge cards et cetera.

whats left represents housing and vehicle and DISPOSABLE income. Some people may be ok with less for food and more for car. others would rather put more into housing. Everyone should consider saving/retirement, but that too is a choice.

This can be eye opening, because most people that get into financial trouble look at monthly payments and forget the relevance of disposable income. This is where unexpected expenses come from, and it is where your food and clothing comes from.

The governments poverty index is currently at 1900$ i believe(maybe someone can help here with the exact current number). The disposable income expectation is at least 800$ a month for a single person. There are a lot of people who make 40k plus who have less disposable than that, or right at that. Most of these people would tell you they are pretty unhappy.

 

[steveny]

I think some of the advice is very regional though. SteveNY mentions flipping a house for an $85k profit in 9 months.

Think about what that means...

A new kid out of college basically needs to escape certain regions as fast as possible I guess. There's no way ANY normal kid "right out of college" is ever going to afford tri-state real estate anytime soon. The real estate is appreciating FAR quicker than their salaries will. They'll save until they die and never do it.

So I'm not so quick to judge todays college kids and I dont have easy answers for them. Me? Even at 33 I cant deal with the NYC area and I'm relocating ASAP. The old "buy a house first kid!" advisory just isn't really possible anymore in most of the US metro areas where a "house" is $200k for a POS starter easily.

I guess the best advice for kids graduating in any big metro area without a silver spoon is "run away fast!"

The other thing is this whole 33% rule. Are people implying that the total cost of the car shouldnt be more than 33% of your annual NET income? That would mean that no one with less than a $270,000 per year NET income (or a $600k gross basically) should even consider a new NSX. I find that HUGELY unrealistic, but maybe Im misunderstanding the argument.

Keep in mind the flipped house was 215k to buy and 315k on the sell side, with 15k of materials plus my labor and this is in a non-metro area. I totally agree with your statement and find it hard to believe a college grad can afford a house right out of school. I also think that the argument is if you can not afford a house now, you would be wiser to save for a house than spend on a car.

I am really excited about my latest real estate buy. Lake house. I can not wait for summer now. I have big plans to fix this one up and make a boat load of cash on the flip. I still can not believe how cheap I bought the house, its like they gave it away. Estate sale, the benefactors just wanted it gone.

 

[Hueylew]

Just my 2 cents I bought my car one year ago at the age of 26 and proceeding my graduation from college I dealt with the same scenario. At that time making around 35k I had a hard time even attaining the lender becasue they wanted to see more income and or more money down. The rate they were giving me was not the best either becasue of the age of the car. You know what I assessed the situation and waited two years. I did my research and sat in like a fly on NSX prime while spending the two years learning about the car, what mods I can do to it, and how much it is to maintain it. I am now engaged have a 1997 Chevy Truck paid for and a 1991 NSX with 35k miles on it. Waiting the time made things a whole lot easier now. I filled my urge for wanting the car by keeping myself motivated to save$ as I admired others NSX's on Prime, and it worked out.


Hueylew

 

[mlambert890]

Cliff notes version of thread:

-Don't buy NSX by using 100% of first job income
-Real estate > car payments in terms of wise usage of money
-NYC sucks
-SteveNY is no joke when it comes to home restoration
-Spookyp is easily confused... makes much more sense now thinking of that in terms of car payments being 33% of net.

In that case, I think 33% is way high. I never go above 16-18% and people think I'm insane for what I spend on cars!

 

[gheba_nsx]

spookyp, I checked again and my investment bank advices his customer not to buy a car that costs more than 33% of their NET income.

This really means that a new NSX should e bought by people that has at least 200k NET income per year.

A 1991 NSX should be bought if you get 90k NET income per year.

This is the "wise" way not the right and not the best way. It is intended for normal people and not for car nuts. And it is a very general rule to tell people with 100k NET income to buy a BMW 325 and not a BMW 745...


There are several reasons that do not always apply:

- amount of "blocked money" you have in the car taht you cannot use or invest (in case you pay for the car)

- lease (in case you do not pay cash)

- cost of repairs and maintenance (normally but not always related to the price of the car). In this case to the new price.

- higher insurance and higher gas usage

- lease (in case you do not pay cash)

I would agree that if you are a car nut you can go up to 40% of your NET income since you will not make many other expenses since you get a lot of fun from your car. This translates that to buy a 1991 NSX you should make about 70k NET incomes in order to be able to be confortable affording other expenses...

 

[huckster]

hey gheba--nice summary and to the point. Little factoid--i read somewhere that acura reported customer info for new nsx purchase average household income 200k plus per year. Anyone have the link to this (nsxtasy??)

My only suggestion which i havent stated very well, keep in mind your disposable income. This is the money which allows lifestyle and financial flexibility. I remember making 30k a year and buying a brand new loaded honda accord for 24k.


That proved to be a bad decision.

 

[martin]

Hi

I live in crazy land.. 33% of my income would buy me a Hyundai Atos 1998.

But I got myself a NSX

Regards

 

[JaeShinCPE]

I too agree that "the most important thing money buys is a piece of mind" You can also say that I got to drive an NSX when I was 23.

I am 25 now and have a comfortable 55k salary income. I have no problem paying for this car.

My insurace is only $1000 every six months or $1800 a year if paid in full. That is FULL coverage of course

I say hell with the people who thinks you are crazy. You are crazy not to own a nsex. PLUS I've had chicks leaving phone numbers on my windsheld wiper asking for a ride.

LIFE IS SHORT enjoy it. Of cource the car can depreciate. your life does too. Enjoy it while it lasts GO FOR IT.

 

[gheba_nsx]

Hi

I live in crazy land.. 33% of my income would buy me a Hyundai Atos 1998.

But I got myself a NSX

Regards

martin,

of course 33% is not possible in high-taxes countries like the scandinavian ones... but on the other hand you have a lot of stuff paid by the government.

Anyway, the Atos could be a nice beater!

 

[steveny]

martin,

but on the other hand you have a lot of stuff paid by the government.

Please post a list of things paid for. Thanks

 

[gheba_nsx]

Please post a list of things paid for. Thanks

martin can be more precise, but from what i know they have a very good system to promote families (having children will not take you down into poverty so families get a good allowance for every child).

There is also a scheme that allow only one parent to work while the other stays at home with a minimal less of income.

They also have adoption benfits for parentless children so they do not have to live in a institute.

Daycare of children is also sponsored.

Even the study is very well sponsored: universities are free and the level of education is very high (not what you expect from the typical public service). This has led to a very high level of education for most of the population.


Furthermore health insurance, disability insurance, social security, ... are all covered by the "normal" income tax.

They have a very good and highly developed public transportation system that is also government sponsored.

This whole method does not create many poors and the criminality is consequently very very low, in general Norway's standard of living is considered among the highest in the world.

 

[td2k_nsx]

Just buy the damn thing.

I bought mine right after grad school. Actually while in grad school. If u want it bad enough u will make it happen and it will mean more than anyone who can just go out and get one without thinking.

I have had mine since 00 and I could probably sell it for what I paid for it.

GET A STOCK NSX sans mods. Pay a little more so u do not have to go do maintainance.

My salary has fluctuated but buying a 35k NSX with a 30k job is easy.

Skip furniture and worldy goods and eat at home.

U do not really need cable.

MAKE SURE U GET A STOCK NSX. I bough mine with mods thinking I was saving. So far every mod I have has been a problem. My RM DTM went bad. My RM clutch is gone. My bling bling rims required too much tire budget.

Just get a stock car and take good care of it. Enjoy life. Who knows if there is a tomorrow.

Plus the NSX will help u meet people and u will probably network and find a higher paying job.

 

[td2k_nsx]

i am 28. my insurance is $800.00 a year. state farm. it has been 800 since i was like 24.

 

[td2k_nsx]

i did not put anything down either. i do not have a car loan for it though.

i also purchased a 180k condo and paid nothing down... i had it appraised and it was way over my purchase price so that became my down payment. now i am building equity.

so... find a good accountant and screw the system.

 

[apapada]

yeah, Lee is right...

Just buy the damn thing. [...] Skip furniture and worldy goods and eat at home.

I would even add that If you don't have furnitures and eat IN your NSX, who needs a home anyway ? this way you actually will be able to afford not one, but TWO NSXs (one you can use as a dining room, the other as a bedroom !) Eat & Sleep in your car, what a concept...

U do not really need cable.

That's right, get a satellite dish instead! you can even probably get a free installation for the NSX too ! Did you ever think how jaleous all those kids in their customized boomboxes will be ? An NSX with a satellite dish, how come no-one ever thought of this b4 ?
Now that I think about it, you don't need cable NOR satellite. You can just just sit watch your NSX all evening, in High-Definition-3D, and it is probably more interesting than what's on TV anyway...

Just get a stock car and take good care of it. Enjoy life. Who knows if there is a tomorrow.

I'm not quite sure how enjoyable life will be if one just gets up everyday to go to work while praying nothing happens to his car, eats at home (can't afford to eat out with friends), does not watch TV (none of his friends would go to his place without cable nor satellite), never go on vacation, etc... all that just in order to meet a payment on a darn car...

Plus the NSX will help u meet people and u will probably network and find a higher paying job.

This is actually the only thing I may agree on.