Comments on: 8 Cars in 10 Years: I Have A Problem, But You Won’t! http://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/ Slicing Through Money's Mysteries Thu, 29 Jul 2010 19:52:22 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Money Green Lifehttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-8594 Money Green Life Mon, 24 May 2010 04:36:18 +0000 http://www.financialsamurai.com/?p=5#comment-8594 I think your 1/10 rule is pretty legit for wealthy people who make a lit of money. but for some of us who are less fortunate and don't make that much money, the rule doesn't stick very well. for instance, I believe the avg mean income is somewhere between 30-35k in the us (not household). that means they can only afford 3-3500 car. i think a $3500 used car is more often than not a crappy car. .-= Money Green Life´s last blog ..<a href="http://www.moneygreenlife.com/save-15-at-any-restaurant-all-the-time/" rel="nofollow">Save 15% At Any Restaurant All The Time</a> =-. I think your 1/10 rule is pretty legit for wealthy people who make a lit of money. but for some of us who are less fortunate and don’t make that much money, the rule doesn’t stick very well. for instance, I believe the avg mean income is somewhere between 30-35k in the us (not household). that means they can only afford 3-3500 car. i think a $3500 used car is more often than not a crappy car.
Money Green Life´s last blog ..Save 15% At Any Restaurant All The Time My ComLuv Profile

]]> By: The Emergency Fund Fallacy | Financial Samuraihttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-8520 The Emergency Fund Fallacy | Financial Samurai Fri, 21 May 2010 13:40:36 +0000 http://www.financialsamurai.com/?p=5#comment-8520 [...] buy a brand new car and take out a loan since our emergency fund can take care of the payments!  1/10th rule for car buying?  What’s that!  The list of stuff you start wanting to buy starts getting [...] [...] buy a brand new car and take out a loan since our emergency fund can take care of the payments!  1/10th rule for car buying?  What’s that!  The list of stuff you start wanting to buy starts getting [...]

]]> By: Play Games To Save You Money And Achieve Your Goals! | Financial Samuraihttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-6944 Play Games To Save You Money And Achieve Your Goals! | Financial Samurai Wed, 07 Apr 2010 18:16:04 +0000 http://www.financialsamurai.com/?p=5#comment-6944 [...] of owning one car.  It’s quite an accomplishment since there was a time where I went through eight cars in ten years.  Currently, my passenger side electrical seat no longer adjusts.  Thankfully, it’s set in [...] [...] of owning one car.  It’s quite an accomplishment since there was a time where I went through eight cars in ten years.  Currently, my passenger side electrical seat no longer adjusts.  Thankfully, it’s set in [...]

]]> By: The Katana: Don’t Be All Things To All People | Financial Samuraihttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-6509 The Katana: Don’t Be All Things To All People | Financial Samurai Sun, 28 Mar 2010 07:38:53 +0000 http://www.financialsamurai.com/?p=5#comment-6509 [...] “Unemployment & Motivation: A Case Study” by Roger is an excellent, and incredibly genuine self-reflection of how Rog feels about finding [...] [...] “Unemployment & Motivation: A Case Study” by Roger is an excellent, and incredibly genuine self-reflection of how Rog feels about finding [...]

]]> By: Credit Card Chaserhttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-6051 Credit Card Chaser Wed, 17 Mar 2010 06:06:25 +0000 http://www.financialsamurai.com/?p=5#comment-6051 Just in case anyone is too fatigued to divide their gross annual income by 10 here is a quick calculator that I made (since the formula is so complex lol): http://www.calculatorpro.com/car-purchase-calculator .-= Credit Card Chaser´s last blog ..<a href="http://www.creditcardchaser.com/getting-a-job-with-bad-credit-is-tough/" rel="nofollow">Getting a Job with Bad Credit is Tough!</a> =-. Just in case anyone is too fatigued to divide their gross annual income by 10 here is a quick calculator that I made (since the formula is so complex lol): http://www.calculatorpro.com/car-purchase-calculator
Credit Card Chaser´s last blog ..Getting a Job with Bad Credit is Tough! My ComLuv Profile

]]> By: The Simple Machinehttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-5452 The Simple Machine Tue, 02 Mar 2010 04:37:28 +0000 http://www.financialsamurai.com/?p=5#comment-5452 I agree with the car rule above! When I first bought my car I didn't know the rule! I did not have much money to I used the following rule: Buy a car not more than 3 pay cheques, so about 1/12 of annual net income (not gross)! Which means you get to buy a 9 to 10 year old american car with my salary. From experience - I have added a few conditions around the 1/10 rule on your blog. You can read these conditions at http://www.thesimplemachine.com/car-spending-rule/ I agree with the car rule above! When I first bought my car I didn’t know the rule! I did not have much money to I used the following rule:

Buy a car not more than 3 pay cheques, so about 1/12 of annual net income (not gross)! Which means you get to buy a 9 to 10 year old american car with my salary.

From experience – I have added a few conditions around the 1/10 rule on your blog. You can read these conditions at http://www.thesimplemachine.com/car-spending-rule/

]]> By: youngandthriftyhttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-4281 youngandthrifty Mon, 25 Jan 2010 08:37:46 +0000 http://www.financialsamurai.com/?p=5#comment-4281 So out of curiosity, Samurai, do you still ride motorcycles? =) You must have a Ducati now. I agree with "don't ever buy new". Once you drive or ride it off the lot, there goes 35% of the purchase price! .-= youngandthrifty´s last blog ..<a href="http://youngandthrifty.ca/tfsa/my-tfsa-portfolio/" rel="nofollow">My TFSA Portfolio</a> =-. So out of curiosity, Samurai, do you still ride motorcycles? =) You must have a Ducati now.
I agree with “don’t ever buy new”. Once you drive or ride it off the lot, there goes 35% of the purchase price!
youngandthrifty´s last blog ..My TFSA Portfolio My ComLuv Profile

]]> By: Potential Best Seller Review & Giveaway: “Your Money Ratios” | Financial Samuraihttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-3532 Potential Best Seller Review & Giveaway: “Your Money Ratios” | Financial Samurai Thu, 07 Jan 2010 09:06:11 +0000 http://www.financialsamurai.com/?p=5#comment-3532 [...] “Your Money Ratios” sings to me!  For someone who loves using ratios such as the 1/10th rule for car buying, and 30/30/3 rule for home buying, I absolutely adore this book.  Charles’ [...] [...] “Your Money Ratios” sings to me!  For someone who loves using ratios such as the 1/10th rule for car buying, and 30/30/3 rule for home buying, I absolutely adore this book.  Charles’ [...]

]]> By: adminhttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-2949 admin Thu, 17 Dec 2009 19:01:07 +0000 http://www.financialsamurai.com/?p=5#comment-2949 Rob - Gotcha, and congrats on breaking the $10K income barrier! Whatever you do, don't ever buy new, and buy with payments. The first 6 months you'll be giddy, the last 18-54 months you'll be in pain! Rob – Gotcha, and congrats on breaking the $10K income barrier! Whatever you do, don’t ever buy new, and buy with payments. The first 6 months you’ll be giddy, the last 18-54 months you’ll be in pain!

]]> By: Robert Espehttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-2947 Robert Espe Thu, 17 Dec 2009 16:04:04 +0000 http://www.financialsamurai.com/?p=5#comment-2947 Thanks, I'm going to play with numbers and work this into my vehicle planning. 20% is actually a step up for me, I've always been a $1000 car man (course until this year I never made more than $10k, so it was inline then). Thanks, I’m going to play with numbers and work this into my vehicle planning. 20% is actually a step up for me, I’ve always been a $1000 car man (course until this year I never made more than $10k, so it was inline then).

]]> By: adminhttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-2927 admin Wed, 16 Dec 2009 18:44:46 +0000 http://www.financialsamurai.com/?p=5#comment-2927 Rob - Basically one vehicle is attached to one income. So, if you are asking about the 2nd vehicle, then it's based off the income of whoever is buying it. If you are the sole income earner of your family and need two vehicles, then yes, it's 1/20th of your gross income salary per vehicle unfortunately! It's the cost of marriage, family, and so forth. It's just a guide, and doesn't have to be taken literally. I strongly believe though that if everybody followed this 1/10th rule, nobody would ever get into vehicle financial trouble! Rob – Basically one vehicle is attached to one income. So, if you are asking about the 2nd vehicle, then it’s based off the income of whoever is buying it. If you are the sole income earner of your family and need two vehicles, then yes, it’s 1/20th of your gross income salary per vehicle unfortunately! It’s the cost of marriage, family, and so forth.

It’s just a guide, and doesn’t have to be taken literally. I strongly believe though that if everybody followed this 1/10th rule, nobody would ever get into vehicle financial trouble!

]]> By: Robert Espehttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-2911 Robert Espe Wed, 16 Dec 2009 17:06:54 +0000 http://www.financialsamurai.com/?p=5#comment-2911 so, how does this 1/10th rule apply to multiple vehicles? If I make $50k, but have 2 vehicles, is that $2500/each? Or does it not matter if I replace them in different years? and do you include the cost of any repairs the mechanic finds when checking out your prospective vehicle? so, how does this 1/10th rule apply to multiple vehicles? If I make $50k, but have 2 vehicles, is that $2500/each? Or does it not matter if I replace them in different years? and do you include the cost of any repairs the mechanic finds when checking out your prospective vehicle?

]]> By: adminhttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-2723 admin Fri, 11 Dec 2009 05:53:46 +0000 http://www.financialsamurai.com/?p=5#comment-2723 <a href="#comment-2712" rel="nofollow">@Steve </a> I donno Steve, I just LOVE to go to the dealerships, take in the cars, and go for a test drive. I've probably gone 65 times without buying a car. The sales people LOVE me! :) @Steve
I donno Steve, I just LOVE to go to the dealerships, take in the cars, and go for a test drive. I’ve probably gone 65 times without buying a car. The sales people LOVE me! :)

]]> By: Stevehttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-2712 Steve Thu, 10 Dec 2009 16:31:08 +0000 http://www.financialsamurai.com/?p=5#comment-2712 I don't love to "negotiate, test drive, and get a deal." For me, I would rather spend 1/N of my income, as infrequently as I can get away with. N has ranged from 3 (back when I was in college and needed a car to get to my summer job) to 6 (this year). I think a better strategy is to stay out of the darn dealerships and stop thinking about it so much. Just enjoy driving the car you already own! But, different strokes for different folks. I don’t love to “negotiate, test drive, and get a deal.” For me, I would rather spend 1/N of my income, as infrequently as I can get away with. N has ranged from 3 (back when I was in college and needed a car to get to my summer job) to 6 (this year).

I think a better strategy is to stay out of the darn dealerships and stop thinking about it so much. Just enjoy driving the car you already own! But, different strokes for different folks.

]]> By: My SUV Will Beat Up Your Hybrid & Save The World! | Financial Samuraihttp://www.financialsamurai.com/2009/07/11/8-cars-in-10-years-i-have-a-problem-but-you-wont/comment-page-1/#comment-2105 My SUV Will Beat Up Your Hybrid & Save The World! | Financial Samurai Wed, 18 Nov 2009 08:06:19 +0000 http://www.financialsamurai.com/?p=5#comment-2105 [...] those of you who have been following this site for a while, you’ll know that I’ve had 8 cars in 10 years and I now drive a 9 year older beater SUV which is MAYBE worth $6,000.  I love “Moose“, [...] [...] those of you who have been following this site for a while, you’ll know that I’ve had 8 cars in 10 years and I now drive a 9 year older beater SUV which is MAYBE worth $6,000.  I love “Moose“, [...]

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