Listen I dont want to crush this thread with this stuff…but people should look at the purchase price of the car and not the monthly payment. Just because the monthly payment fits into your monthly budget doesn’t mean you should buy/lease a $30-40K car.
Agreed! No where did I ever say to look at the Payment. The important part is the price of the car. Which is why if you look in my original post I talked about LTV. Do you know what LTV is? Loan to Value, meaning the purchase price of the car. Price of the car vs it's actual value. So no monthly payment isn't important in that aspect, but it is still important as well to know if you can afford it. Negotiate a lower price for the car, and the payment will go down. One should be primary focused on the purchase price.
I actually just leased a 40k car, invoice was 42k, my purchase price was 40k, I then got a $5000 rebate, so purchase price was 35k. So I am leasing for 3 years, the "amount" the car depreciates in those 3 years. yes it is an estimate, but it is also negotiable when you turn in the car. So long as I stay under 12,000 miles a year (I drive between 700-800 miles a month), at the end I can turn in the car without the issue of having to pay extra on the loan due to loss of value. I can easily afford the roughly $380 a month payment for a brand new car that I enjoy driving, is covered under warranty, and provides free maintenance throughout the 3 years.