Your income to cars' worth ratio?

[VeeDubb]

Not sure I'd put a lot of value on this ratio.

My rule is pretty simple. I buy the car that I have the capability of paying cash for after all other expenses/savings goals/retirement contributions have been made. That doesn't mean I won't finance (1.9% rates are darn attractive!); it just means I don't have to.

 

[Audi Junkie]

Mom's $16k Passat is going on 12 years old. Pretty cost/effective.

That's what I like aboutthe Accord product. Cheap enough to drive it for $1500 a year, nice enough to actually keep it long enough for that pay-off.

 

[JTK]

Originally Posted By: M1Accord

Leasing is not buying. Sorry amigo.


Nice! I'm happy to increase my ratio, but how is a vehicle owned by the bank any different?

Joel

 

[biomed_eng_2000]

Your 12 year old Passat would sell today for $16k?!

Oops, I guess that you bought it for $16k and it has served you guys well for 12 yrs thus far. So about $1300 per year thus far.

 

[crinkles]

my ratio is 3.7... based on gross income and typical resale value.

ratio is 4.2 based on gross income and what I owe on it. ouch

it serves me well though.

My gross income is 13.0 times my annual payment.

ratio of my net assets (everything in except my home contents which should be virtually worthless to try and sell) to the car's net worth (value - owed) is 13.5

 

[Camu Mahubah]

8.72 if I did that right.

 

[PandaBear]

Me + Wife = $92k + $71k = $163k
Car worth = $3k + $4k + $32k (not including sales tax, $36k with tax) = $39k ($43k with tax)

Ratio = 4.2 (3.8 with tax)