Purchasing a Car Guilt Free

**Shewillbemine** · 12-27-2011, 12:53 AM

Hi All,

My first thread and am enjoying this recently found site.

My question is about buying a car. I am a car aficionado and it's definitely one of those things that I am willing to spend money on (wisely).

If I have zero debt (except a mortgage), have a 6 month emergency fund and am maxing out my retirement funds, no children, and plan to pay cash for a used car, what kind of financial state should I be in to feel ok about it? I'm looking for a mathematical answer I guess.

For example, if I'm going to pay cash for a $10,000 car, how much should I have leftover in my savings for it to be "ok"?

I realize there may be more than one answer to such a subjective question but I appreciate any responses.

Thank you.

**khaski** · 12-27-2011, 07:42 AM

I would say as long as you maintain the 6 month emergency fund, whatever amount you could save up before purchasing it would be fine, be it $5 or $25k. I would not raid your EF to purchase it. Also, I would try to spend as little as reasonable to get a car that I really liked (as in, don't get one you feel just ok about for $8k if you can afford the $10k one you really like...also, don't spend $14k on one you LOVE if you can get one you really like for $12k).

**chris w** · 12-27-2011, 08:53 AM

Dave Ramsey's guidelines are since vehicles , boats, and rvs go down in value, you should have no more than 50% invested in them. Do if you make $100,000, your things with motors should only add up up no more than $50,000. AND you should pay cash (you already knew that).