How much income do you need to make a year to afford a $200,000 Ferrari?
"How much income do you realistically need to make to afford a $200,000 Ferrari? I'm thinking of buying a Ferrari, as I recently had a promotion and bonus at my job."
“Let’s say that you can realistically get a new car loan for the $200,000 Ferrari at 3.5%. Your monthly payments would be (assuming the rate stays the same for the length of each term):
- 60 months = $3,774
- 48 months = $4,606
- 36 months = $5,994
So if you were to adhere to the idea that you should never pay more than 10% of your monthly income on a car (at least at the 60-month term), you should make $37,740 per month, or about $450,000 annually to be able to comfortably afford the car.
Keep in mind that you’re also going to a sizable amount for car insurance on an exotic car, so factor that into your budget as well.”
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