Well if you’re over 50 making that much you’d probably have accrued net worth and lower liabilities with kids out of the house and such. But yeah, living in a place that isn’t NYC makes a huge difference too.
Seeing as how the least expensive new car available in the US is around $14k and median household income is around $55k, it doesn’t apply to any crowd. Sure, there are $5,500 used cars out there and someone is buying them, but someone also had to buy a new $14k Nissan Versa before it could become a used $5k Nissan Versa and I doubt that someone was making $140k.
I can imagine people making $1 million a year buying a $100k car. At median sort of income levels, something doesn’t add up obviously. Maybe he meant to say car payments are 10% of income.
purchase price = 10% of income. it’s one of those extreme financial freedom bits of advice that I’m sure very few follow. even the author grants it’s really hard to achieve, admitting even if you go to 20% you’re doing pretty good. 20% really opens up the options.