Quote:
Originally Posted by E92Snow
+1
As long as he has income coming in, it's a safe bet that he can afford his car. And even if he doesn't, he still has more than enough to cover the payment.
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Technically, a 16 year old with a weekend job could probably afford to cover the monthly lease payments but that doesn't change the fact he would be living beyond his means.
Most financial advisors advocate spending no more than 20% of your annual gross income on a car, so for a $50K car you would need to make about $250K. Makes sense when you think about it, a $50K car just shouldn't be affordable to the average guy.
IMO, too many people are driving cars they can't really afford. I don't see the point in driving a $50K car but living in a rental or having no net worth.
If I were a fresh grad, I'd buy a Honda, drive it until the wheels fall off, and save like crazy for the down payment on a condo.