Are you looking for a car buying guideline? Do you think my 1/10th rule is too harsh? If so, do not fret!
Let me also introduce to you the net worth rule for car buying guideline to follow. The net worth rule for car buying is generally reserved for wealthier people or retired people with a lot of assets, but not a high income.
I came up with the net worth car buying guideline because my 13-year-old Land Rover Discovery II was starting to give me fits back in 2013. His cruise control had just died and I was starting to worry about car safety, which is everything if you have a family.
I had just spent $800 that summer on a new steering pump, timing belt, and 125,000 mile tune up. So it was disappointing to see another issue come up.
Besides the cruise control not working, the brakes are mushy, the airbags haven’t been serviced at the 10 year mark, the traction control and ABS lights are on, and a couple $220 M+S tires are balding.
Oh yeah, the CD player doesn’t work either and there’s no bluetooth of course! My trusty mechanic of 12 years said Moose was operationally fine. The dashboard lights are just on due to a broken fuse lodged deep inside the control panel that makes it not worth replacing. Still, I had my doubts.
I wanted to buy a new car! But I also had just retired in 2012 and no longer earned six-figures in finance. I’m other words, I was asset rich, free cash flow poor.
Based on the 1/10th rule for car buying, I can buy a new compact car. The problem is, I wanted to buy the latest Range Rover Sport that costs $90,000! Let’s see if there is a car buying guideline to help get me and you what we want.