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Old 06-27-2008, 11:51 AM
maat55 maat55 is offline
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Quote:
Originally Posted by LivingAlmostLarge View Post
So affordability is based on income not on whether you save cash? I keep reading save up cash and you can buy any car. People rarely tell you no, you can't afford this $30k car if you make say $50k. They say fine you saved for it.

But realistically it's not a great move probably.
DR says that, all the cars in your family should not exceed 50% of your income. Say you make 100,000 a two car family should have two 25,000 or less. You can arrange the numbers however you like such as 10,000 40,000 etc. The point is to not have too much of your net worth tied up in assets that loose value. I personally stay below 50% to play catch up.
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