Income required to comfortably buy an nsx

[drew]

What we're doing is really arguing over what "afford" really means.

I'm firmly in the game with Bio-Banker and his definition of "afford".

My opinion, for what its worth, is that any luxury/discretionary items like a car shouldn't be noticeable financially.

**

To most of America, to "afford" something the ONLY number that matters is the cost per month.

Nothing else matters. Nothing. Not the total cost, not the cost of ownership and absolutely not worrying about the highest cost of all: the cost of lost opportunity.

I see kids in their 20's getting a loan on a car and, in most cases, begin the process of *permanently* indebting themselves and begin the daily grind of monthly obligations. They have volunteered to be lifetime indentured servants or, if you like, slaves for life to a creditor.

**

Of course, in the long run everybody is dead, so you have to worry about the now and here. There is much competition for your place in life (women, jobs and living space) and the hotties* really tend to go for the short game.

I see many young guys take the chance to almost certainly destroy their future by driving nice cars, renting a place on the beach and living large. Nothing breeds success like the appearance of success and occasionally a few are able to pull this off into a real life of riches (ie your basic non-value-adding over-payed CEO). This potential is very alluring and often used by the media as the proper example how it is done.

This whole process sorts out by 30-35 years of age, but by then the hotties are not quite as hot and are laden with baggage. (Which is probably why you see all these old rich guys driving around in their F-cars alone or with 20 year olds

So it really depends what you want to do with your life: A leveraged lottery (with 1:16.9M odds of winning All or Nothing) or delayed moderate success?

I understand the concept of "you can drop dead at anytime", but what happens when you don't?

Drew
/sigh, kinda neg

 

[Fireballs_92nsx]

I look at it in the light that if I pay all my bills, and I have money left after IRA, Savings account, and I can then have toy's, then go for it!

 

[sahtt]

I disagree with much of the above.

In my business, most people make 7 figures and some make 8. So there is a ton of dough in ppls pockets.

My boss, who makes about $10mm a year, drives a 10 year old pathfinder. Driving expensive cars is a terrible financial decision.

My opinion, for what its worth, is that any luxury/discretionary items like a car shouldnt be noticeable financially. If that $1,$2, or $5k a month payment or downpayent or full cash price of the car is felt by your wallet, IMO, its too early from a financial perspective. I understand if you're an enthusiast and you've gotta have it anyways. That's the price you pay!

Just my two

You can make it 4 cents. Estimating someone's worth or overall buying power by the car they drive is foolish, especially their DD.

"If you drive an integra, you probably can't afford it".

So if someone spent 50k on a MB, that somehow means they have more money versus spending 8k on an integra instead?

Is there a general trend that wealthier people buy more expensive cars? I'm not so sure. I used to think so but of the top 10 wealthiest men I know personally, only two of them drive a car worth more than 10k. The rest of their family drives nicer cars then they do (usually the wife/daughters especially). If they buy new, they drive the car in to the ground for 12-15 years before replacing it.

It doesn't take a self made millionaire to know that a car is an awful "investment". I think the fact our culture is obsessed with cars has had a large impact on our private savings rate as well as debt accumulation.

Among NSXprime members, I'd say we are probably close to the only exceptions to that rule. One of the NSX's unique features is its reliability and low depreciation rate.

 

[NSXAMG996TT]

my NSX = my IRA :biggrin:

 

[macready]

I barely afforded my NSX, if you think about it. To afford an NSX you need it to be total disposable money. I made a **** last year and own 8 houses. I still found it hard to buy my NSX. I don't consider buying the NSX a smart move in any means. You can take that 40k and double it. So at what income can you afford an NSX. I say about 500k+/year.

 

[supra2nv]

I barely afforded my NSX, if you think about it. To afford an NSX you need it to be total disposable money. I made (removed) last year and own 8 houses. I still found it hard to buy my NSX. I don't consider buying the NSX a smart move in any means. You can take that 40k and double it. So at what income can you afford an NSX. I say about 500k+/year.

i wouldnt personally announce my income to the world, but that's just me lol

 

[macready]

i wouldnt personally announce my income to the world, but that's just me lol

True, slight immaturity on my part. My bad!

 

[supra2nv]

True, slight immaturity on my part. My bad!

you can edit yours you know lol

 

[macready]

Thank you, as you can tell I'm newb.

 

[john@johnhudakracing]

Let’s pretend the NSX is being sold today, new for $80k.

Well why pretend when I can just sell you one for 80K ?

I’m single, with no debt. My cost of living per month is $5k. So how much should I be making so that I can have an nsx and still sustain my vida loca

Ikes. You might re-adjust your cost of living budget from 5K to like $500. Then pick-up an NSX for 15K.

Then budget for mods, contingencies, and other misc expenses... I'd say 50 million a year should do it. :smile:

 

[satx]

If this number surprises then you then you are not keeping track of current economy of this country AND basic statistics.

We live in a Winner Take All society and that has always caused an extreme amount wealth to concentrate into very very few hands.

fixed that for you.

Here is one of those statistics for you.

15% of US households have a net worth (excluding primary residence) of 500K or more. That is what the IRS defines as being "rich". There are ~125MM households in the US which means that ~40MM individuals connected to these "rich" households. Things are not as bleak as the politicians would like you to believe.

 

[onefastrx7turbo]

I may as well chime in here. I know I'm a newb to this forum, but I'm no newb to forums in general. I've been on Rx7club, m5board, azrx7 and preludeonline for quite some time. I believe the original poster had asked what income was required in order to "comfortably own an NSX." As many of you have stated, "rich" or "wealthy" is a relative term. I have always been taught that it's necessarily the amount of money you earn, it's the amount of money you keep. For example: Let's say Bob makes $100,000 per year. His monthly living expenses total $7,500 per month. In this particular case, I would say that Bob couldn't afford an NSX baed on the amount of money he has left over at the end of each month, which would be roughly $150. Now let's look at the other end of the spectrum. Frank lives at home, and goes to college. He has essentially zero living expenses, as his parents pay his food, clothes, housing, etc etc. Frank works full time and makes $40,000 per year. He could afford one just due to the fact that he has essentially no bills and no debt. Just on paper, Frank could own one very comfortably. I personally would argue that he should save for a house, put money away, invest money, invest into a roth IRA, etc. That's just me.

 

[martyg]

bah!!!! i dont even have a job and i have one...(its paid for so dont jump on my ass), plus a porsche a couple X5 4.6's and an audi s4. yeah they are paid for too. if you want it get it....

this country was founded on debt, if you need to take on debt, IMO thats fine, just make sure its worth it to you...if it is, and you have a plan for that debt...and what ever else life throws at you...you will be fine....

just remember, ANYONE can go broke...doesnt matter how much you have, or how much you owe, or what your plan is or was...it CAN happen...just be ready with the next plan if it does...


we should start a new thread.....

"who has the most debt" :biggrin:
and
"why is doesnt bother me"

It reminds me of one of my favorite reality checks. Its origins is in river running, but I apply it to all aspects of life, love, business, etc.

1. What re the moves to get from point A to point B?

2. Do I have the ability to make the moves?

3. What are the consequences if I don't make the moves?

4. Am I willing to accept the consequences?

 

[tosugrad]

Good thread. I loving reading all the opinions on here. Very educational, if not a bit comical!

 

[Meeyatch1]

This thread is interesting to me because I just had a conversation last night with my in-laws about spending habits of people. We broke it down into 3 groups of people:

1.) Those who spend more than they earn, no matter how much they earn.

2.) Those who spend all that they earn, no matter how much they earn.

3.) Those who spend far less than they earn, no matter how much they earn.

Where I find it funny, as a self admitted 'cheap bastard', is that I really enjoy saving money wherever I can. When I was in high school and college I would spend all that I earned, and after college I bought a BMW M3 as a reward to myself for my first job. I was making good money right out of school and did not think anything of having a car payment of about $550, or $725 per month in rent, or a wicked spending habit of blowing $1,000 per month on useless crap. I paid all my bills, and all was cool. A couple of years ago I sat down with my father, who is a financial planner, and he showed me how much I pissed away on car payments, interest, rent, and useless objects. I was stunned. From that point on my perspective changed. I now refuse to have a car payment, I bought a home to build equity, and spend only what I have to to survive. The irony is that I make more money down that I did then, yet I am super frugal. I even started doing my own maintenance on my cars to save money. The one thing that I really enjoy is having a financial cushion and some investments in my future stability. While all of my friends are all out getting themselves a$$ deep in debt, and spending more than they have, I am trying to save up as much as I can to pay off my home early, and invest. Granted, you have to spend something. But I will tell you right now that I enjoy knowing that if I lost my job tomorrow I could live for a while without one and find the right replacement job, and not be stuck in panic mode wondering how I am paying next months bills. I am in 100% commission sales, so you have to learn how to manage money. Some people are good at it, some are not so good. But planning ahead really helps. Where having an NSX is concerned....yeah, I drive my 14 year old 1994 NSX all year. Yeah, it has over 134,000 miles. But you know what, it is all mine, no car payments, and I love it. Sure, I am pretty lucky, and feel blessed to have the advantages that I do now. Not everyone is so lucky. So if you have to have a car payment, or any other payment really, please make sure it does not run your life. Keep it as a fraction of your monthly income, not the lions share of it. It is much more rewarding to have some reserves set aside than to live in panic mode all the time.

I honestly believe that most peoples debt load is ego based. They feel that they have to have the 'latest and greatest' thing. Or they have to have the most flashy clothes or car that will get attention. Getting spoiled by the idea that you are entitled to some level of comfort that is more that everyone else is a slippery slope. I am not saying that you should not reward yourself for hard work. Just be darn sure that if your world came crashing down tomorrow you could maintain your lifestyle for a while. If not...re-think your priorities. Re-think them right now, or you will regret it.

 

[Fatal Lightning]

^

I'm with you all the way. I think we had the same parents!

...oh wait...one difference. I'm still waiting on my 1994 black/black NSX. I found one, but it's a tad overpriced IMO.

 

[davidg]

Remember to invest in your own health first. Many people take better care of their NSX than themselves. Income required to own an NSX has definitely gone down over time. Just look at all the wacky threads of late.

 

[onefastrx7turbo]

I agree 99% with Mitch. Everything except the "pay the home off early" Other than that, he is dead on. Always have cash set aside just in case. You never know when the water heater, air conditioner, heater, washer/dryer will stop working. Also, the way the economy is going, good jobs might be somewhat of a rarity here in the US...plan for that too.

 

[slamstrom]

This thread is interesting to me because I just had a conversation last night with my in-laws about spending habits of people. We broke it down into 3 groups of people:

1.) Those who spend more than they earn, no matter how much they earn.

2.) Those who spend all that they earn, no matter how much they earn.

3.) Those who spend far less than they earn, no matter how much they earn.

Reminds me of this quote:
If your outgo exceeds your inflow. Your upkeep will be your downfall.

 

[BluryNSX]

to me 5k for a single person is alot unless it includes a mortgage... I am 28 married 1 child, my expenses are mortgage, home and car ins., kids tuition, and utilities and I only put out 3500 not including entertainment and bs spending... I bought my car cash and althought it is a 94 I wouldn't have it any other way.


Please don't max youself out for a car as much as I would reccomend anyone buy one if you don't atleast have 5k a month over what you need for basic living DON"T DO IT. start saving when you have atleast 50% of what you want in savings start looking and then only put 25% of your savings into and use the rest as a net. I am in no way as savy as most of you with my money but constantly read your threads trying to figure out how to be more independently wealthy, half the sh!t most of you say is over my head, I need a finacial advisor lol :tongue:

 

[docjohn]

to me 5k for a single person is alot unless it includes a mortgage... I am 28 married 1 child, my expenses are mortgage, home and car ins., kids tuition, and utilities and I only put out 3500 not including entertainment and bs spending... I bought my car cash and althought it is a 94 I wouldn't have it any other way.


Please don't max youself out for a car as much as I would reccomend anyone buy one if you don't atleast have 5k a month over what you need for basic living DON"T DO IT. start saving when you have atleast 50% of what you want in savings start looking and then only put 25% of your savings into and use the rest as a net. I am in no way as savy as most of you with my money but constantly read your threads trying to figure out how to be more independently wealthy, half the sh!t most of you say is over my head, I need a finacial advisor lol :tongue:

No you don't,you just need to do what most youngsters can't conceive of doing,saving money for the future.You'd be surprised how many of my younger employees would rather opt out of any 401k to put more cash in pocket every month:frown: The blank stares I get when I tell them how fast 10-20 years will go by Oh well.

 

[steveny]

I am pretty comfortable saying I think you could do it with as little as One Billion a month in net income.

 

[damthatbeaver]

Hi all...I am doing it a bit differently than most...I am financing my 91 NSX and making payments of $700 a month. However, I am content to have the vehicle and let her sit in the garage. I do take her out once in a while - but I want to pay her off first...then I can afford anything that may arise. For some, this sounds insane...but like I said - I am content to just have her.

Dam