2022 Camaro with a V8 about $35,000
Big if - a kid just starting out puts down 20% ($7,000), he'll have a payment of about $500/month for 60 months (a length of term that was only starting to be used in the mid 80s with most people financing for 48 months or less so this example is much worse for today's kids than it looks).?ÿ Include about $200/month in insurance for an 18 year old with a Camaro for $700/month.?ÿ Divide by 40 hours a week and 4 weeks a month for about $4.50 of the hourly wage going to a car (no gas or any upkeep yet).?ÿ If the kid was responsible enough as to buy with the suggested use of only 10-15% of their income being spent on a car.?ÿ Then $4.50 as lets say 15% of their hourly income - hourly income would need to be about $30 to be able to at least somewhat prudently afford the car.
So perhaps the kids coming in and asking for $25/hr are just trying to have a similar quality of life to folks just starting out in 1984 or they are at least trying to be more responsible.
At $15/hr, the same car would be about 30% of the kids income.?ÿ Or as much of your income as your supposed to be spending on buying a house!
