Subjective Question: Minimum Annual Salary to Buy Perf 85kWh w/options

[rorystewart]

Me: Want to own this car but feel my annual income might be too low. I could technically afford it and still live my same life (albeit with far less $ going to savings), but I'm concerned about being judged by co-workers and peers as someone who spent more money on a car than he should at his income level.

Subjective question for you: Assuming someone has no money saved, and is financing the entire car (Performance), what is the minimum annual salary that person should have in your opinion?

[Discoducky]

With all other thing being equal, its still a hugely loaded question, but ill bite: 60K

Since its about half the total financed cost

[jerry33]

That depends on how you finance it. Basically you do not want to be in a position where if something bad happens (RIF) you lose your car and/or house (assuming you're not renting). There is a thread here.

[napabill]

"what is the minimum annual salary"

$0. But, of course, I'm retired!

[rorystewart]

With all other thing being equal, its still a hugely loaded question, but ill bite: 60K

Since its about half the total financed cost

Thx for sharing!

Funny. I always thought that it was the opposite. Like your car should at least never be worth more than half of your annual salary. Thus 180K would be the bare minimum acceptable salary. As I think back about it, I cannot remember where I got that idea in my head though. This is one of the reasons I posted this thread. I am curious what the average opinion is on the matter.

[Velo1]

There are too many variables to answer specifically, such as current debt load, number of kids still on the payroll, etc., but 60k sounded a bit low to me. I'd say something closer to 75k.

Toward co-workers or peers, just tell them you got huge tax credits, and there is the offset in annual expense for gas relative to your old car, minimal upkeep, etc. You know, just answer like a politician and use fuzzy math.

Whatever you do, run the financial numbers and make an objective decision. Good luck

[rlawson4]

I would say at least 3X the price of the car. Of course other spending matters as well. Just an opinion

[dsm363]

I can't really give a number but feel that if you are financing the entire cost of the car because you have to that's entirely different than if you are financing the entire cost of the car because the rates are so low it works out better for you. A financial advisor who is familiar with your exact financial situation could provide better advice too.

[Zythryn]

If financing, I don't see why you would upgrade to performance with all the options. Especially if concerned what others would think.
It also depends a lot on why you are buying it.
If you are buying it to stop damaging the next generation (either on environmental, financial, or national security) or to try to prevent deaths of soldiers being put in harms way, AND are not afraid to tell people, then I don't think there is any reason not to buy it.
As a matter of fact, if you can swing it, many would say it is your patriotic/moral duty to do so.

[bosgig]

Totally depends on your view towards financial margin of safety and your other debt and/or goals. Do you have a mortgage? Other debt payments? Risk to your job? Etc. So only you can answer this question. My advice: if you finance the entire thing, let's just call it $95,000 for lack of a better number (especially since the tax credit comes later) on a 5 year loan at 4%, you're looking at $1750/month. That's $21k/year. No way I'd do that on under $100k pretax. But that's me with my biases and preferences. Let's say you want your payment to be under 20% of your take home pay--I didn't work out the exact effective tax rate and I don't know your deductions, etc., but I'm guessing that's closer to $135k in pretax income. Personally I'd want the payment to be a lower percentage than that, but that's just an example. Just my two cents--again, depends on your comfort level with debt, job security, etc. Totally your call, as you know. I wouldn't worry about your co-workers. Just tell them you bought the stock the day of the IPO and have made some good dough off of it!