How much should you spend on a dream car?

Whether you’re paying cash or financing, the purchase price of your car should be no more than 35\% of your annual income. If you’re financing a car, the total monthly amount you spend on transportation – your car payment, gas, car insurance, and maintenance – should be no more than 10\% of your gross monthly income.

Should I lease my dream car?

Leases are an attractive option because payments average over $100 less per month than finance payments on a new car purchase. If your budget can’t support buying your dream car and you aren’t willing to scale back or buy used, leasing may be a better option than purchasing and taking on a car payment you can’t afford.

Should you buy the car of your dreams?

The very first thing you have to understand about buying the car of your dreams is that unless it’s a vintage automobile or an extremely rare vehicle, it’s probably going to lose value over time. In other words, you’re buying the car for your own personal enjoyment and not as an investment, so kiss the money you’ve been setting aside goodbye.

Is buying a car an investment or a fun investment?

Step 1: Understand that it’s an investment in fun. The very first thing you have to understand about buying the car of your dreams is that unless it’s a vintage automobile or an extremely rare vehicle, it’s probably going to lose value over time.

Should you set a goal when buying a car?

I have found that setting a goal, in this case the purchase of the car of your dreams, takes an incredible amount of conviction and a number of constant reminders, since there are numerous other wants and needs that will creep into the picture as well.

Is your car-buying experience useful for investing?

As I sop up my drool yet again, the only reason I’m even bringing up my own personal car-buying experience is that I noticed quite a lot of useful investing correlations with the steps I undertook to purchase my car that I suspect other investors out there might find useful.