Submitted by ThrowawaySF__ t3_10q5wim in personalfinance
leadfoot9 t1_j6o4wea wrote
15% is a "rule of thumb" now? I thought it was an horror statistic, like most people not having $400 in savings.
You're talking about monthly payments, right? Otherwise, I assume you would've reported annual income.
ThrowawaySF__ OP t1_j6o7eqj wrote
Yes, I was talking about monthly payments, sorry. And perhaps it's not a rule, I just did a search in the reddit task bar and saw it repeated in all the "how much car can I afford" posts.
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I didn't think that was an applicable rule for me because 15% of 24k is 3k+. Don't think I can actually afford that.
leadfoot9 t1_j6o8u39 wrote
Yeah, that sounds insane. Are you sure it isn't full retail price of the car vs. gross annual income?
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