Toyota RAV4 Forums banner

1 - 20 of 101 Posts

·
Registered
Joined
·
349 Posts
Discussion Starter #1
The conventional wisdom is that you should spend 10 percent of your income on a car. So if you make 150k you should spend 15k.

By that math I assume everyone here earns at least 200k since many are spending a ton on these rav4s

 

Attachments

·
Registered
Joined
·
349 Posts
Discussion Starter #5
I think that guy is a total jacka$$. But there is a huge discussion over at Jalopnik and how you should only spend 10k if you make 100k.

What happens if your cheap a$$ gets fired for missing work when your beater wont start?
 

·
Registered
Joined
·
435 Posts
It really should be linked to average yearly spending on cars. Big difference between someone spending 10% each year to buy a new used car vs someone who buys a new car and drives it for a decade or longer.

BTW, buy an electric car and you're paying upfront with very minimal of expenses after taking ownership. I am saving more than $1K a year for gas for my 12k mile annual commute, not to mention not having to get oil change and other ICE car expenses.

147091
 

·
Registered
Joined
·
435 Posts
BTW, here's a Google Sheets someone made to compare TCO of Tesla vs various other cars.

 

·
Registered
Joined
·
619 Posts
It really should be linked to average yearly spending on cars. Big difference between someone spending 10% each year to buy a new used car vs someone who buys a new car and drives it for a decade or longer.
Agree, buy new or lightly used one and keep it as long as possible for maximum savings.

BTW, buy an electric car and you're paying upfront with very minimal of expenses after taking ownership. I am saving more than $1K a year for gas for my 12k mile annual commute, not to mention not having to get oil change and other ICE car expenses.
With 12k mile annual commute you just prepaid for all that "gas" and "oil changes" and it would take you decade to break even.

BTW, here's a Google Sheets someone made to compare TCO of Tesla vs various other cars.

Resale value doesn't make sense after 5 years, it's unknown for Model 3 and higher for Camry. Maintenance cost for gas car is BS. On top of it all fare comparison would be with Corolla which would be much cheaper even a hybrid one...

If you throw away BS numbers and keep maintenance the same this looks more realistic.
TeslaCamry
Purchase Price $38,990$29,111
Sales tax$2,729$2,038
Destination & doc fee$1,200$1,100
Average Miles Per Year 15k
Maintenance Costs (5 Years)$1,300$3,286
Cost of fuel (5 Years)$2,500$7,500
$46,719​
$43,035​
 

·
Registered
Joined
·
122 Posts
Conventional wisdom no longer applys .
Compounding interest doesn' work when the Interest Rate is near zero unless you can go into
a stasis pod. But when you wake up in 1000 years if you do there is good chance money won't even
exist.
 

·
Registered
Joined
·
273 Posts
Nope! I’m often away from home 3-4 days per week. 1 xtra day off a month to deal with repairs or bad weather etc. would cost me about $600! So a reliable AWD is easy to justify! And the piece of mind not having to worry about the wife’s car while I’m away! I guess I could have bought a decent used older RAV4 for 12-15k? But I didn’t!!!
happy wife happy life!! 😘
 

·
Registered
Joined
·
435 Posts
Re: TCO sheet

Then extend it to 12 years of ownership. The Camry will probably have several belt changes, one timing belt change, more oil changes, etc. Although, Camry is still no comparison as the Model 3 has much better performance is more in line with the Lexus version of the Camry.
 

·
Registered
Joined
·
435 Posts
Re: 12k annual miles

Yeah, except I traded in the Forester. The improved performance plus lower operating cost makes it worth it, for me. :)
 

·
Registered
Joined
·
273 Posts
Agree, buy new or lightly used one and keep it as long as possible for maximum savings.


With 12k mile annual commute you just prepaid for all that "gas" and "oil changes" and it would take you decade to break even.


Resale value doesn't make sense after 5 years, it's unknown for Model 3 and higher for Camry. Maintenance cost for gas car is BS. On top of it all fare comparison would be with Corolla which would be much cheaper even a hybrid one...

If you throw away BS numbers and keep maintenance the same this looks more realistic.
TeslaCamry
Purchase Price$38,990$29,111
Sales tax$2,729$2,038
Destination & doc fee$1,200$1,100
Average Miles Per Year 15k
Maintenance Costs (5 Years)$1,300$3,286
Cost of fuel (5 Years)$2,500$7,500
$46,719​
$43,035​

Electric only cars in Montana! Uh not realistic! Maybe someday? Range isn’t enough and throw in -10 to -50 below zero! There are a few Tesla’s around but just for a few that are making 300k +!!! Nearest fast charge is about 220 miles away!!!
 

·
Registered
Joined
·
619 Posts
Re: TCO sheet

Then extend it to 12 years of ownership. The Camry will probably have several belt changes, one timing belt change, more oil changes, etc. Although, Camry is still no comparison as the Model 3 has much better performance is more in line with the Lexus version of the Camry.
I can tell you that I have owned 2007 Mitsubishi Outlander for 12 years until I replaced it with hybrid, certainly my mileage has been low at 90k when I sold it because it wasn't daily driver for past 5 years, but besides oil changes, couple brake jobs and two batteries as well 60k service my guess I spent all together under $5k on maintenance and somewhere $16k on gas (20 mpg @$3.50). Timing belt is not needed to change until 110k miles. So for me personally when yearly mileage is at 12k or less electric cars are not financially feasible. I don't care about 0-60 times in my daily commutes either so all that performance is not needed.
 

·
Registered
Joined
·
435 Posts
Electric only cars in Montana! Uh not realistic! Maybe someday? Range isn’t enough and throw in -10 to -50 below zero! There are a few Tesla’s around but just for a few that are making 300k +!!! Nearest fast charge is about 220 miles away!!!
Agreed that if I lived in Montana, it would be a 'maybe'. ... but it really depends how many miles you drive in a typical week. With a NEMA 14-50 receptacle in your garage, you can charge at 32A. That gets you 6-7KWh per hour. With each KWh getting you between 3-6 miles... each 8 hour night, you get back 144-336 miles in range. I would hope your daily commuting need is less than 144 miles... if you do, you must spend a fortune on gas.

BTW, you only need to use the Super Chargers when you travel. Plus, it's much cheaper and more convenient to charge in your own garage vs the Super Charger.
 

·
Registered
Joined
·
619 Posts
If you can manage that move closer to reduce commute time to your work and buy cheaper car or use public transportation, rather then living further away and hoping to save gas money with electric car. It will reduce spending on a depreciating asset along with reduced stress levels associated with daily commutes in traffic.
 

·
Registered
Joined
·
435 Posts
If you can manage that move closer to reduce commute time to your work and buy cheaper car or use public transportation, rather then living further away and hoping to save gas money with electric car. It will reduce spending on a depreciating asset along with reduced stress levels associated with daily commutes in traffic.
That is a fact, unfortunately, some have more considerations, like wanting safer neighborhoods, larger homes and room for kids to run around meaning the suburbs. The area around my work is also not recommended, although I lived around there when first starting and had no problems. But at the end, it's a personal decision on how to get the best combo for you and your family. :)
 

·
Registered
Joined
·
37 Posts
I'm not sure you're fully comprehending the article correctly. For example:
  • a ~$30K rav4 with a 3.8% interest rate is about $550 a month
  • 12 months a year x $550 a month = $6,600
  • given the article a $66K salary would hold true
Not sure how you equated this to 300K......

Reading the article again. I'm not sure even jalopnik.com understands this. Unless you're paying off the car in full at time of purchase, this would apply. However, most reasonable people take loans, and are well under 10% of their yearly salary/income.
 

·
Registered
Joined
·
50 Posts
I'm not sure you're fully comprehending the article correctly. For example:
  • a ~$30K rav4 with a 3.8% interest rate is about $550 a month
  • 12 months a year x $550 a month = $6,600
  • given the article a $66K salary would hold true
Not sure how you equated this to 300K......

Reading the article again. I'm not sure even jalopnik.com understands this. Unless you're paying off the car in full at time of purchase, this would apply. However, most reasonable people take loans, and are well under 10% of their yearly salary/income.
I think your calculation makes more sense. Otherwise, the whole country are overspending on car.
 

·
Registered
Joined
·
619 Posts
I'm not sure you're fully comprehending the article correctly. For example:
  • a ~$30K rav4 with a 3.8% interest rate is about $550 a month
  • 12 months a year x $550 a month = $6,600
  • given the article a $66K salary would hold true
Didn't read the article, but I would have hard time considering to pay $550 monthly payment per months with $66k salary.... My comfort level would be paying $200 monthly payment which would roughly be $20k car for 8 year loan.
 
1 - 20 of 101 Posts
Top