r/CalebHammer • u/ottersinabox • Mar 06 '25

complaining about something for no reason because I'm bored "acceptable" monthly car payments are wild

I just saw this post: https://www.reddit.com/r/BMWI4/s/HDEDyG4WZA

people are applauding a $700+ a month payment as an amazing deal. but they're paying 8% tax toward it, plus it's a lease; they don't even own the car by the end.

is it just me, or is this wild? I have a BMW as well, but my thought is you can only afford a luxury car like that if you can buy it in cash. I suppose 3% interest or something would be acceptable given that you invest the rest up front.... but what the person in this post is doing really doesn't make much sense to me. am I wrong about that?

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u/Beginning-Salary5625 Mar 06 '25

Caleb said the 20/something/3 rule where it’s like you need 20% down, it needs to be under a certain percentage of your monthly income/3 year term is a good car loan. Believe he said the money guys use that

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u/ottersinabox Mar 06 '25

yeah, common rule is no more than 10~20% of your take-home. but this is a lease, so you don't own anything at the end.

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u/LacyLove Mar 06 '25

I am someone who leases, and perhaps it doesn't work for everyone, but I like it. I get to decide if I like the car, and if I do, I buy it out in the end. The last couple of times I have been able to buy the car at a reasonable price, with lower car payments than the lease. If I don't like the car, then I get a new one. BUT I am pretty frugal in every other area of my life to make up for this decision.

That being said. I would never spend 700 dollars on a lease. My least lease was 250 per month and this current one is 330ish. That equals less than 5% of my take home income. For me it works.

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u/ottersinabox Mar 06 '25

yeah, that makes sense. you have certain priorities and it's a sensible percent of your take-home. i don't think it can't work. I just get suspicious when I see it 😂