How much income do you gross each year in USD? The RX-8 is obviously more than your basic economy vehicle needed for transportation. Most certaintly a pizza boy will not make enough money to buy this car.

This doesn't take into account for disposable income and geographical location, but will slight marker of how much you need to make before you can afford this car.

55k/year but no expenses since I'm living at home :)

This is kind of a bad poll as we have a number of kids that have no job and whose parents are buying them the car. Lots of them are first time drivers too... at least that's what I've read :\

This is kind of a bad poll as we have a number of kids that have no job and whose parents are buying them the car.

Granted I may be younger than most buying the car, but I will have the cash to buy the car when I graduate college in 3 years (with my own money!). Just thought I'd clarify

Strider-

theres no catagory for me:( as i make no income

Originally posted by Hercules
55k/year but no expenses since I'm living at home :)


I think you mean with parents instead of at home. I too live at home but I have expenses. ;)

I see a slight problem with the poll. One's salary is very location dependent due to cost of living differences. An accurate sampling of "how much you need to make before you can afford this car" may be difficult to assess from this poll.

edited to correct my spelling of assess (assess not asses) oops :)

a 30k car is definitely for the 70k+ crowd. It's just well... stupid to buy a car that expensive if you make less than that.

Originally posted by inittab
a 30k car is definitely for the 70k+ crowd. It's just well... stupid to buy a car that expensive if you make less than that. Isn't this more a matter of your priorities and what other expenses you have? Many people, myself included, would rather rent a cheaper apartment or buy a smaller house in order to have a particular car they desire. And, since my wife and I don't have any kids, we have much more free income than most parents that make much more money than we do.

-Stephen

Originally posted by StephenF
Isn't this more a matter of your priorities and what other expenses you have? Many people, myself included, would rather rent a cheaper apartment or buy a smaller house in order to have a particular car they desire. And, since my wife and I don't have any kids, we have much more free income than most parents that make much more money than we do.

-Stephen Amen. I know I'll be sacrificing a bit by getting into the RX-8 but things I won't have will be made up every time I wind that car up to redline and hit some corners :)

Well living here in Texas, where we could afford to buy a home with a back yard compared to when we lived in L.A. where we only rented (because the cost of a house or even a condo was way out of our price range) .. so location does make a difference.

Plus, back in California, we were a 2 income family but didn't have any kids yet - now we have 2 young children but only my income, which certainly adds to our expenses (Our move to Texas, pretty much allowed my wife to be our full time daycare)

Thanks Honey, I owe you!

:D

Edit: I can't wait for our economy to improve so I can look forward to a raise. I work in Advertising - I'm lucky to still have a job! But I haven't had a real raise to cover our Health Benefit increases over the last 4 years which truly sucks.

We also need to remember that most people exxagerate their income when asked. This is evident in this poll.

Cost of living is definately a key thing, I for instance made 41k last year (take home), but the year before I had finished paying off all my school loans and CC's and am 100% debt free. Being a bachelor that has $600/month total for townhouse payment and utilities leaves quite a bit of money (around $2500) a month for a car/insurance payment and still have fun (ie second hobby is the ultra-expensive paintball!!)

Based on the large number of responses in the >$70k I'd say ironqqq had no idea that many people make that much money are interested in this car. The pole should have included a >100k, >200k break downs. Up unitl my recent divorce, our household income was greater than $250k/yr.

Yes I could easily afford a premium BMW or Mercedes, but EVERYONE has one where I live. BORING.

PLUS I'M CHEAP!

Originally posted by jonalan
We also need to remember that most people exxagerate their income when asked. This is evident in this poll.

It may not be as exaggerated as you might think. I think others are right this car is more suited to those making 70k+. My other cars I was considering were an BMW M3 or a BMW 330i. But I make 6 figures, a few years ago I wouldn't have considered buying a 33k car. In fact I'm 31 and this will be my first new car purchase. I've only bought used in the past because of my lower income at the time. I chose the rx-8 over the others to keep my payments down but still have fun and have a car I can drive the hell out of. Without stretching my budget.
Even with today interest rates and assuming $5k down payments on the rx8 will be rather high for most. Around $600 I think? Plus insurance! Where I live someone making $35k a year can expect to take home just short of $2000 a month after taxes $18xx something I think. So your car payment and insurance would be a pretty good chunk of that. Then there's the house payment/rent, food, gas etc etc.
Then of course there's the children factor. I have no kids.

I make ALmost $5k/year! :D

Originally posted by jdj1971
It may not be as exaggerated as you might think. I think others are right this car is more suited to those making 70k+. My other cars I was considering were an BMW M3 or a BMW 330i. But I make 6 figures, a few years ago I wouldn't have considered buying a 33k car. In fact I'm 31 and this will be my first new car purchase. I've only bought used in the past because of my lower income at the time. I chose the rx-8 over the others to keep my payments down but still have fun and have a car I can drive the hell out of. Without stretching my budgetThis will be only the second car I have bought new. The first was my CRX. I was raised to never buy on credit. I am paying cash for this one too.

There are a lot of people that buy expensive cars to "keep up" or "show off." I would hope that buying an RX-8 demonstrates that a person has done a lot of research. There will be number of people who jump on the bandwagon just because of the car looks cool. They will miss out on the true beauty of the handling and tech behind the car.

What I wanted when buying the car is to recapture the driving experince I had with the CRX. I am buying this car to impress me, and not to impress anyone else.

together with my wife we @62-65,000/ year. so while we aren't in the 70,000 range that some of you are talking about this car is definetly within our budget. we decided to wait and see what the msrp would be (because we had to stay under $30,000) before purchasing something else, and thank mazda for coming in under that ceiling:D

I have always thought a good rule for budgeting is to have a car that is worth as much as you make a year and a house 3x's as much as your salary. That way you can live very comfortable and still have money for fun stuff. So you sixty percent that make 70k+ "GO BUY A NICER CAR CHEAP A$$!":D

Originally posted by Puppy1
... I am buying this car to impress me, and not to impress anyone else.
Couldn't have said it any better myself.

Wow, is it me or did Mazda really miss the boat on the RX-8 is any indication. I thought they were supposed to create an affordable rotary power sports car with the younger buyer in mind. There arent many young people I know making 70k+ a year :eek: .

Hey Herc a question- you are graduating this spring right? If so congrats on the new job. Even a job is good in this economy let alone one making $55K a year, what market are you in? I have some friends still in school, have any tips on how ya got the job? And also, $55K and yer living at home??!! :eek: I make less than that and I am lookin to get the heck out of my rents place, restricts my freedom i had in college :D

Originally posted by Puppy1
Yes I could easily afford a premium BMW or Mercedes, but EVERYONE has one where I live. BORING.

PLUS I'M CHEAP!

No, you just have refined taste.

Originally posted by tallguylehigh
Wow, is it me or did Mazda really miss the boat on the RX-8 is any indication. I thought they were supposed to create an affordable rotary power sports car with the younger buyer in mind. There arent many young people I know making 70k+ a year :eek: .

Hey Herc a question- you are graduating this spring right? If so congrats on the new job. Even a job is good in this economy let alone one making $55K a year, what market are you in? I have some friends still in school, have any tips on how ya got the job? And also, $55K and yer living at home??!! :eek: I make less than that and I am lookin to get the heck out of my rents place, restricts my freedom i had in college :D Just got the job but I don't start till May. It's at the NJ State Justice Department in Trenton doing IT work :)

I'd have to agree with the notion of cost of living.

I currently make 6 figures but I just bought my first house and I have $160,000 in school loans to pay off. While I can still afford an RX-8, the margin is fairly small.

i agree as well, it is definitely where your priorities are... living in southern cali, and being asian, lots of my friends buy cars to show off, or look nice in... all of them have bmw's, lexus, CLs, s2000 etc etc... and not many of them make more than 45K a year... now most live at home with their parents, so that does reduce costs... i am 24, make close to 6 (probably more this year), but i do am buying a house..., although the M3 is tempting, my heart is set on the rx-8 as i fell in love with the rx-7 when i was in high school (my friend had one)... there are different priorities to each person, so to those, a big chunk of their monthly salary is nothing to be seen in a nice car... now those kids like beemers etc, people who want a real car for a good price will buy the rx-8

Originally posted by inittab
a 30k car is definitely for the 70k+ crowd. It's just well... stupid to buy a car that expensive if you make less than that.

What are you basing your comment on? A blanket statement like that is "stupid". A person's income doesn't always reflect their worth or financial status. It only indicates how much money they make from their job right now.
I for one don't make 70K a year, I own my own home, and will find it easy to afford the top of the line RX-8. I may not be able to take as many SCUBA trips this year, but I'll manage. Ah manage, the key word in "Manage your money". Maybe that's what it's all about not "stupidity".

Enjoy your cars guys if you are stupid enough like me to buy one :-)

Some polls have some interets, this one is stupid and completely off-topics.

rael.

Originally posted by Puppy1
Based on the large number of responses in the >$70k I'd say ironqqq had no idea that many people make that much money are interested in this car. The pole should have included a >100k, >200k break downs. Up unitl my recent divorce, our household income was greater than $250k/yr.

Yes I could easily afford a premium BMW or Mercedes, but EVERYONE has one where I live. BORING.

PLUS I'M CHEAP!

The same here in SA. the BMW 3 and Merc C are always in the top 5 of the bestsellers in South Africa. Everybody seems to have one, boring, predictable and poor taste. Viva RX-8!

Originally posted by SPDFRK
I have always thought a good rule for budgeting is to have a car that is worth as much as you make a year...

You got to be kidding.

I, like Good Duck, hope that SPDFRK is kidding. Allocating that much of one's salary, whether he has other expenses or not, seems a little ridiculous.

I don't know if I am considered young in this forum (25 - BS ChemE/MS ChemE/attorney - I spent a lot of time in school) but I live like a pauper and save religiously so this car (mythical Mazdaspeed RX-8) will probably just make into my price range in a couple of years.

I remember reading an article a long time ago in which a senior American Express express exec said that the profile of the Platinum card holders (this was a time when platinum meant EXCLUSIVE and not a regular card like Platinum is today...) was:
1) They spent at least $100,000/yr on the credit card
2) They weren't rich, but if they stopped spending they would be

This income poll is just one measure of the target demographic for the RX-8, the poll could have been age, size of family, etc.

For me it's just an interesting statistic. Personally I don't believe people are lying about their incomes. Based on the cost of the car, and type of people who could consider buying the car, even before voting and seeing the results I thought the income brakets were too low.

The following rule of thumb is what I believe:
1) Your house should not amount to more than 4x your income, but should also have at least 25% downpayment/equity (you should have a margin of safety). Thus you only borrow 3x (25% of 4x is 1x this has to be your equity/downpayment). eg If you make 50K, maximum you borrow is 150K. Total house you can buy is 150+ your downpayment (realistically 200K or more if you have big downpayment).
2) Your car should not be worth more than 50% of what you make. After all, no matter how much we all enjoy a nice car, this is a depreciating asset.

Of course these are rules of thumb and as people pointed out many personal situations differ:
-Do you have 10 kids or are you DINKS (dual income no kids).
-Do you have other loans or you are frugal and debt free
-Are you lucky enought to be born wealthly or are you helping to support your parents
-Do you buy your kitchen utensils at Walmart or Williams Sonoma
-Do you like to drink beer or champagne
-Is a vacation going tent camping or going on a round the world cruise

Anyhow, I expected the average income of buyers to be 2x the cost of the car, so average of 60K, the poll seems to be roughly following that... 55% over 70K in income...

I think that is what Mazda marketing folks would also expect...

An earlier post said rule of thumb for cost of a car should be 1x of what you make is way too aggressive. If this were the case the average income here should be 30K, which is probably more the market segment of Kia...

I was 'invited' (they claimed it was by invitation only) to get an Amex Platinum about 10 years ago when I was spending over $90k per year on my Amex Gold (lots of international travel - all billable of course). Now I have a desk job I barely put $10k a year on it.

I agree that spending over 50% of your gross income on the biggest depreciating asset you will ever own is not financially prudent. I would go further and say that if you have 2 or 3 cars they should not cost more than 50% of family income in total. Build equity in a house or put it into savings instead.

The only problem with this statement is that not many people will pay off a car in full when they buy - the payments will be spread over 3-6 years so it never looks that big every month. For example do you look at it as if you were buying a $30k car on a $36k salary (crazy), or from the perspective of a $500 per month car payment on a $2000 per month net paycheck (acceptable to some).

Creditors will typically look at your debt-to-income ratio to determine your viability for financing.

The number to stay under is 36% of your gross income for recurring debt expenses. The 36% (or less) would include rent/mortgage (and property tax, hazard insurance stuff) and other loan payments. Credit card payments would be included if you carry a balance, as well. You don't include expenses like power or phone or other "bills", and don't include day-to-day expenses -- just your debt.

In most cases 28% is the most that lenders want you to spend monthly on your mortgage(s), if you have no other significant debt. Its also the number that landlords will usually look at when they check credit, for those renters out there.

So a guy grossing 48k per year (4k per month) should figure that payments for car and home would add up to US$1440 monthly, and should keep his car payment below US$320 (8% of 4k).

The guys that can afford $800/month payments might pay off the car in 3 years, but that doesn't mean someone with no money won't be able to get the car on a 10 year loan and be able to afford a $200 payment. The interest cost for that is obscene, and I wouldn't advise it, but there are banks that would line up to give you the loan.

If you have the cash to pay for the car up front, though, then none of the debt-to-income matters -- unless that US$30k is earning income for you. And if you can get your money to grow faster than the loan rate, you come out ahead (of course, if we could always do that, we wouldn't need our day jobs...).

I'll probably pay down half the car up front, then get good financing for the other half, paying it down ahead of schedule to minimize interest. Your own mileage may vary.

-ss

well now, i fall in the 20-29k crowd...just graduated from college, not makin a whole lot i know, but i moved back home w/ the parental units, and this is my dream. financial prudence can come later, so what if the car is 105% of my yearly salary. yes i know 5 bux in the bank today will be like a bajillion dollars when i retire but i don't think like that anymore...

once upon a time i worried and planned and counted and never had a chance to enjoy anything, so now i'm going to get my rx-8, and i'll pay it off in about 3 years (yes it's aggressive) considering i don't have a whole lot of other expenses, no kids, don't have to pay alemony...and 2 phone calls later i've lost my train of thought, at any rate- still have a fall back plan of mebbe getting a 3rd gen instead hehe

There is a way to get the 8 for a very cheap price. I'm sure almost everyone knows about this. But anyways, I know this girl that a slightly used mercedes slk roadster, maybe 2002, for 30k cash. It had like a couple thousand miles. Reason being so much cheaper was the fact that the right fender was crushed in a bit. There was no damage to the frame.

Now thats a good deal. buy a slightly used car that has a small damage and take it to a body shop you can trust and have it repaired for a couple thousand or less(I really don't know how much it cost to repair auto body).:o

But here is a tidbit for the Cali peeps who wants to save some money on the 8 and doesn't mind driving quite a distance. Also you have to wait until the 8 has been out for awhile. California puts a lot of tax on car purchases. I was told to go to Arizona buy a car there and just drive it here to california and just pay a few hundred bucks for registration and maybe smog. And if the dealer offers cash back, then put the cash back into a bank account and use that as part of the monthly payment. Depending on your financing you can pay your monthly with your cash back maybe up to six months.

I don't make much money myself so I try to find many different ways to get a new car for the lowest price.

Why was this put in this forum in the first place?

---jps

Originally posted by Sputnik
Why was this put in this forum in the first place?

---jps

The lounge seems like a good place for this. no? :confused:

Originally posted by inittab


The lounge seems like a good place for this. no? :confused:
It was moved from the general forum.

Damn, we have some well off people on this forum.. :eek:

Originally posted by Quick_lude

It was moved from the general forum.

Damn, we have some well off people on this forum.. :eek:


Not to rehash all the arguements.....but....in GENERAL *oversimplification warning*, people interested in a car costing this much GENERALLY have more money.

:)

If you want the car - buy it!:D

Just to add my two cents.

My wife and I gross, together, over 100K/year. That might make it look like the RX-8 is pocket change. Payment and insurance would probably hit $700 a month, max. No big deal, right?

But we have mortgage payments, car loans from 2 present cars, car insurance on the two cars, half a Ferrari's worth in student loan payments, the sneaking suspicion that Social Security may not exist by the time we're old enough to collect in 40 years (so we're putting heavily towards retirement), and our first child due in October. I.e. there's no way in hell I can afford this car new.

Instead, I'm going to wait until one of you fellows (like maybe Hercules) turns in his lease for a Mazdaspeed version, and look into buying the car used. The car and the insurance will be cheaper, any reliability problems should have already been addressed, and I won't be making any payments on other cars.

Originally posted by FamilyGuy
Just to add my two cents.

My wife and I gross, together, over 100K/year. That might make it look like the RX-8 is pocket change. Payment and insurance would probably hit $700 a month, max. No big deal, right?

But we have mortgage payments, car loans from 2 present cars, car insurance on the two cars, half a Ferrari's worth in student loan payments, the sneaking suspicion that Social Security may not exist by the time we're old enough to collect in 40 years (so we're putting heavily towards retirement), and our first child due in October. I.e. there's no way in hell I can afford this car new.

Instead, I'm going to wait until one of you fellows (like maybe Hercules) turns in his lease for a Mazdaspeed version, and look into buying the car used. The car and the insurance will be cheaper, any reliability problems should have already been addressed, and I won't be making any payments on other cars.

Almost exactly my situation, except instead of student loans (I finally paid mine off six or seven years ago) I have two kids to save for college for.

No matter how much I make, I just can't seem to justify a new car. I have had great success buying two-year-old, low mileage cars. They still have a portion of their new car warrantee, and are typically very affordable (in relation to new). Treat your new RX-8's well folks...I'll be looking to pick one up in a few years...

Originally posted by inittab
a 30k car is definitely for the 70k+ crowd. It's just well... stupid to buy a car that expensive if you make less than that.

and spending $30,000 on a car isn't stupid? What's so special that a 30k car can do that a 9k Hyundai can't? they both get you around where you need to be, they both seat 4. they both have headlights and a stereo system with air conditioning. they both have air bags. hell, one has better gas mileage and probably cheaper insurance. one's got a ridiculously long warranty. so in all pratical purposes....rx8's a waste of money. but why would people drop 30k on a car that can do everything a 9k car can do, but a little better? maybe it's because cars are their passion and its really of their main concern more so than your average car buyer.

Originally posted by inittab
a 30k car is definitely for the 70k+ crowd.

The current generation BMW 3-series was targeted at families in the 75k range. A later survey showed the average income of 3-series buyers was about 90K. The survey was in USA today about 4 months ago and had income/age/gender info for a wide variety of cars. I remember the 3-series numbers because I have one. I also remember the Porsche 911 (996) average was 227k even though I don't have one.


Since the RX-8 is a bit, but not that much cheaper, than an e46 I would expect that Mazda is targeting 70K incomes and that the median will be about 80K.
Polls on this board show a median of about 70k, which might be a bit low because the higher-income folks are usually too busy making money to respond to polls on a car forum.

Originally posted by Finprof
Polls on this board show a median of about 70k, which might be a bit low because the higher-income folks are usually too busy making money to respond to polls on a car forum.

hahaha I love this thread, it keeps getting better and better! :)

Hi folks... I realized I made a mistake of not putting a 0-9k income bracket for those who are either paying cash with low income or from those who are getting the car from their parents. Gomen nasai. And I didn't realize that many ppl made over 70k. I can't change the poll options unfortunately.

Like I said, in my posting of the post,

This doesn't take into account for disposable income and geographical location, but will slight marker of how much you need to make before you can afford this car.

Notice I said it doesn't take into account disposable income and that is only a slight indicator. Most are taking the poll just for a very general information only but 1 or 2 seem bit peaved or worked up.

I posted the poll cause I just had come to the decision I would no longer buy the RX-8 cause I can't afford it and just wanted to see what type of demographic is buying the car.

I'm 25, make about 47k, pay about $725 a mont in rent and utils. I've estimated my total cost of ownership to be about $750 a month (with 10k down). I could buy the car but I would not have any savings for 5 years and I do eventually want to become a homeowner. With 2 bedroom 1 bath condos going for $150k+ these days in Souther California... well you get the picture.

I will probably end up buying an Civic or Integra and just supercharge it instead (that's my 2nd dream car)...

I don't think I can afford the car until I break $60k and I dont think that will happen anytime soon. Sucks, I've been looking at the RX-8 for over 1.5 years now. It sucks to have you dream go away.

I don't think I can afford the car until I break $60k and I dont that will happen anytime soon. Sucks, I've been looking at the RX-8 for over 1.5 years now. It sucks to have you dream go away. [/B]

Could you afford a $22 - 24K car in two years? Buy something cheap now to get you by, then get a RX-8 used or off-lease...

Polls on this board show a median of about 70k, which might be a bit low because the higher-income folks are usually too busy making money to respond to polls on a car forum.

Um, no, actually. It shows a median of about 70k because there isn't an option for anything higher. Notice it says "70k+" not "I make exactly $70k but nothing more than that." I suspect the spread is quite a bit higher than the poll shows, because there are probably quite a few people here that make more than $70k (or even $100k) a year. It really isn't all THAT unusual to make that much.

I have a hard time believing that 50%+ make 70k or more.

Originally posted by said7
I have a hard time believing that 50%+ make 70k or more. I think many HOUSEHOLDS make far more than 70k, not necessarily 70k per individual.

Originally posted by said7
I have a hard time believing that 50%+ make 70k or more.

haha 70k is like poverty level in a state like.... oh... CT, NJ or CA. Well... not really but it certainly ain't a lot.

50-59k, but that is inly because I'm in the navy, and have most of my expenses for me and my wife paid for... like medical and such... plus, military discounts on insurance are beutiful! :-) plus we're dual income, own a home, and are still paying on our 2002 Dodge Durango..... I just thought the RX-8 was a good step up from my 1998 Escort zx2... hehehe

Originally posted by inittab
a 30k car is definitely for the 70k+ crowd. It's just well... stupid to buy a car that expensive if you make less than that.

I wouldn't say stupid, maybe reckless would be more appropriate. I certainly can't see buying a car that costs more than half your salary. That being said, my coworker recently bought a used Porsche 911 for $80K, which is way MORE than his annual income, with a 7 year loan. I thought that was reckless, especially considering his insurance costs on top of that. I also don't like macaroni and cheese so much that I'd live on it for seven years to be able to drive a certain car :)

I, unfortunatly, do not make boat loads of money. I make a modest 30-35k per year at my IT job. If I had to live on my income alone, there is no way in hell I could afford this car. My wife, however, makes somewhere in the range of 140k-160k/yr. And it is with great thanks that I will take delivery of my fully loaded (with nav) RX-8. :)

That being said, my coworker recently bought a used Porsche 911 for $80K, which is way MORE than his annual income, with a 7 year loan. I thought that was reckless, especially considering his insurance costs on top of that. I also don't like macaroni and cheese so much that I'd live on it for seven years to be able to drive a certain car

For a short time I took Kung Fu. The one guy in the class had to be in his early 30s. Drove a Porshe 911 turbo to class every time. I told him it was a gorgeous car. He said, "Thanks! This is my third Porshe, but the other two didn't have the turbo."

I walked away whistling, "It's a hard knock life, for us... it's a hard knock life, for us!"

Originally posted by JTek_55
I, unfortunatly, do not make boat loads of money. I make a modest 30-35k per year at my IT job. If I had to live on my income alone, there is no way in hell I could afford this car. My wife, however, makes somewhere in the range of 140k-160k/yr. And it is with great thanks that I will take delivery of my fully loaded (with nav) RX-8. :)
Hey JTek_55, if things don't work out with you and your wife, could you let us know? (just kiddin', man!)

Well, I'm 24 living in NJ and making 49k a year. Which, until I read this post, I was feeling pretty good about. I just wish the economy would get better so I could hop jobs and start making more, or at least get a decent raise.

Anyway, I want the car, and if I can get the payments in the $580 a month range I'll be good to go considering I've been paying that for my car and stereo loan combined for the past year and a half. Since I paid off the stereo loan recently, I'm making that payment towards my car to pay it down some. My only problem with getting the car is a) insurance (hopefully it'll be less than my '96 Z28, but it doesn't seem like it will be :( ) and b) my downpayment will do nothing more than overcome the equity loss of my camaro.