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Who's going to buy a Sport S now, then a Rubicon in 2 years?

Rex3rd

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Just curious, what's your rule for home price vs annual income? Something tells me we live in drastically different parts of the country.
I'm the only one working and hit just around only 40k a year so I guess the only thing I could afford new is a Kia with that methodology. Yes those are the very core straight up truthful answers no one wants to hear but we all are different. For me I know it would take me 5 plus years to save enough for a down payment big enough to get my payments on this truck down to 5 600 a month. I don't plan on trading it in or selling it I plan on keeping it long term. Yes I would pay way more for the stretched out 84 or so month payments but it puts the truck within reach with a low down payment and a much lower monthly payment. Us poor people pay more overall but sometimes you bite the bullet and do what you need to do to get what you want. You can always refinance later down the road.
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Haus

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Just curious, what's your rule for home price vs annual income? Something tells me we live in drastically different parts of the country.
I don't own a home, it doesn't make financial sense in the city. I rent a two bedroom for 15% of my monthly take home after taxes. As was said above, most home calculators suggest staying under 30%, but to me, spending 1/3 of your income on a mortgage would make it very difficult to continue investing and saving for retirement.
 

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Since the Rubicon has a tow rating that's only 650 lbs. less than the Max Tow Sport model, I'm considering getting a Rubicon instead and then add a load leveling device of some sort to handle payload, similar to what the Ram 1500 guys are doing.

As far as the fenders go, Max Tow comes with "molded in color" fenders. Doesn't that mean it's got the body color fenders already? Or does that refer to the grey Rubbermaid fenders?



The guys that do short term financing get to $1,000/month very easily. That's why statistics show that most Americans are doing 72-84 month terms these days.
But like how short of a term are they doing to get $1000 a month? Even on a short term that seems like way too much.
 

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He didn’t say the house was cheaper, just the monthly payment. The difference between a 30 year loan and a 5 year loan.... The cost of homes in the US varies wildly, much like it probably does in Canada.
Maybe it’s different here but who has mortgages payments that are less than $1000 a month?

Detached housing cost varies here, but on the low side it’s around 500k the normal cost in a major city is around 1-1.5 million. And you can easily push up to 2 million.

So that’s why I don’t really see how you can have a mortgage payment under $1000
 

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I don't own a home, it doesn't make financial sense in the city. I rent a two bedroom for 15% of my monthly take home after taxes. As was said above, most home calculators suggest staying under 30%, but to me, spending 1/3 of your income on a mortgage would make it very difficult to continue investing and saving for retirement.
I'm familiar with the ratios for monthly payment vs income recommendations, but you said annual income vs total vehicle cost is a deciding factor for you, which made me curious. I have never heard any recommendations based on those numbers, everyone usually just talks DTI. That was the only reason I asked. :)
 

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Haus

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I'm familiar with the ratios for monthly payment vs income recommendations, but you said annual income vs total vehicle cost is a deciding factor for you, which made me curious. I have never heard any recommendations based on those numbers, everyone usually just talks DTI. That was the only reason I asked. :)
I forget where I originally heard considering a vehicle versus annual salary vs monthly income. Possibly something from Dave Ramsey, or somewhere else. However, I think it makes sense. It's very difficult to purchase a home outright. Homes also usually appreciate in value. Vehicles are depreciating assets, and that makes financing them a very bad idea. It's become the new normal, but consider how many people have their lives or their futures ruined by constantly trading in underwater loans for the next best thing. And then, as soon as financial hardship hits and they are unable to afford the monthly payment, they don't have enough equity to pay off the loan.

It's a toxic cycle that takes advantage of the impulsive consumerism of the average person and gets them to trade their future for their present enjoyment while the banking industry profits. Don't get me wrong, I'm happy with my freedom to choose to do that, but it's something not enough people think about.

I've gone off on a tangent, but that's why I think of cars in terms of annual salary. If I can't comfortably pay off a car within 12 months of signing for it, I won't buy it. Otherwise I'm buying a first class ticket to a string of poor financial decisions that affect my future.
 

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Maybe it’s different here but who has mortgages payments that are less than $1000 a month?

Detached housing cost varies here, but on the low side it’s around 500k the normal cost in a major city is around 1-1.5 million. And you can easily push up to 2 million.

So that’s why I don’t really see how you can have a mortgage payment under $1000
I own a 1100sqft home (plus 1100sqft of unfinished basement), 2.5 stall garage, good sized yard, neighborhood is mostly retirees with some young families moving in. Private school within a half mile. Paid 74500 for my home. 550 a month w/ escrow 30 years. Hoping to pay off in 10.

I also live in Iowa.

To keep this somewhat on topic..

I'm hoping to get 12k trade in on my JK (2008), and making an effort to save up an additional 10k down. Should give me a comfortable payment on my income for a 60 month loan. Going with a minimally optioned rubi
 

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Wow, I wish houses were even remotely close to that here. I guess that’s why I didn’t understand the comparison between the mortgage payments and car payments. The area I live townhouses are about ten times that cost, and have a one car garage and no yard.

So that makes sense on having a car payment less than a mortgage payment.

I own a 1100sqft home (plus 1100sqft of unfinished basement), 2.5 stall garage, good sized yard, neighborhood is mostly retirees with some young families moving in. Private school within a half mile. Paid 74500 for my home. 550 a month w/ escrow 30 years. Hoping to pay off in 10.

I also live in Iowa.

To keep this somewhat on topic..

I'm hoping to get 12k trade in on my JK (2008), and making an effort to save up an additional 10k down. Should give me a comfortable payment on my income for a 60 month loan. Going with a minimally optioned rubi
 

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Save your money and buy the Rubicon in two years. If you buy the sport you will regret it.
 

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But like how short of a term are they doing to get $1000 a month? Even on a short term that seems like way too much.
Well, a $50,000 Rubicon financed at 36-39 months will get you there, or higher depending on interest rate. It's easy to hit a 4-figure car payment in today's world.

As far as the financial lessons in this thread go, last I checked, the average U.S. household income was something like $55,000. So the idea of only spending less than 30% of your income on a vehicle is a joke. People, especially with families, need dependable, efficient, safe transportation and that costs $$$.
 

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Well, a $50,000 Rubicon financed at 36-39 months will get you there, or higher depending on interest rate. It's easy to hit a 4-figure car payment in today's world.

As far as the financial lessons in this thread go, last I checked, the average U.S. household income was something like $55,000. So the idea of only spending less than 30% of your income on a vehicle is a joke. People, especially with families, need dependable, efficient, safe transportation and that costs $$$.
It's not a joke, you just don't like the reality of the options presented at that price level. For $16,500, there are plenty of cheap, reliable transportation options, and that's brand new. Extending to lightly used or CPO yields hundreds of choices. Like I said before, it's your money, spend it how you want, but nobody should be trying to justify that spending $40,000 on a lifestyle pickup truck when you only make $55,000 per year is a smart financial decision. They should at least be honest enough to say to themselves "I am making a very poor financial decision because I really want this product and I think the happiness I get from it will make up for my lack of financial options in the future."
 

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It's not a joke, you just don't like the reality of the options presented at that price level. For $16,500, there are plenty of cheap, reliable transportation options, and that's brand new. Extending to lightly used or CPO yields hundreds of choices. Like I said before, it's your money, spend it how you want, but nobody should be trying to justify that spending $40,000 on a lifestyle pickup truck when you only make $55,000 per year is a smart financial decision. They should at least be honest enough to say to themselves "I am making a very poor financial decision because I really want this product and I think the happiness I get from it will make up for my lack of financial options in the future."
Don't disagree. Just curious how many kids you have and how old they are? It was easy to stay within those guidelines when I was single.
 

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Don't disagree. Just curious how many kids you have and how old they are? It was easy to stay within those guidelines when I was single.
I have two kids, aged 12 and 13. In fact, it was them that made me more financially responsible. I used to not really care what the future looks like. I never want to put the burden on my kids to take care of me.
 

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See the problem with that right there is the fact that if you have a $1000 monthly payment you are putting way to little down on it.

55k household income ? Holy, if that’s the household income and spending 50k on a car that’s crazy. But I guess if houses are under 100k then it makes it easier for you guys ?

Man over here if your household income is under 120k you’ll really struggle with a mortgage and kids and cars. You’d need to be in the 150k and over range, esp if you are buying a 50k car.

I can’t even imagine buying a car for that much when my household income is that low. Even if my personal income was that low paying for a car that cost that much would be insane.


Well, a $50,000 Rubicon financed at 36-39 months will get you there, or higher depending on interest rate. It's easy to hit a 4-figure car payment in today's world.

As far as the financial lessons in this thread go, last I checked, the average U.S. household income was something like $55,000. So the idea of only spending less than 30% of your income on a vehicle is a joke. People, especially with families, need dependable, efficient, safe transportation and that costs $$$.
 
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See the problem with that right there is the fact that if you have a $1000 monthly payment you are putting way to little down on it.

55k household income ? Holy, if that’s the household income and spending 50k on a car that’s crazy. But I guess if houses are under 100k then it makes it easier for you guys ?

Man over here if your household income is under 120k you’ll really struggle with a mortgage and kids and cars. You’d need to be in the 150k and over range, esp if you are buying a 50k car.

I can’t even imagine buying a car for that much when my household income is that low. Even if my personal income was that low paying for a car that cost that much would be insane.
lol, I got a 125% loan for 72 months on our van and used the extra to pay down my heloc.

Dang this is some good grain,
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