• Kazumara@feddit.de
    link
    fedilink
    English
    arrow-up
    0
    ·
    1 year ago

    The example the article gives is pretty extreme to me:

    [Greg] McBride, the Bankrate analyst, walked MarketWatch through a hypothetical car-buying scenario for an average-priced new car that cost $48,000. Taking into account the trade-in value of your existing vehicle, let’s say you knock some money off the sticker price and finance a $40,000 purchase price at 7.5% for five years. That’s an $801 monthly payment — which means you would need to make $96,100 a year if you wanted that payment to be 10% of your income.

    I don’t think I’d ever want to spend half a yearly income on any single purchase. An investment in a house being the only exception.