What Cars can you afford as an Engineer?

What Cars can you afford as an Engineer?


so if friend of mine recently got a mechanical engineering job so we started discussing cars and it got me thinking what can a car can an entry level engineer actually afford so today I want to share with you real figures of my income and people can occur you can actually expect so Ford if you become an engineer so let’s begin I graduated school last year and I have been working as an engineer for almost a year I am considered an entry level engineer so the numbers used will apply to you if you just graduated engineering school so let’s see my last let’s check stuff and get started so this is my check stub all of these reasons I’m only showing the summary of my stuff this is a consistent number per month since I get paid salaries just like most engineers as you can see I make six thousand seven hundred and seventy dollars of gross income this is before any taxes and deductions so I don’t ever it could actually see this number let’s start listing some stuff so gross income 6770 from these six thousand one hundred and seventy four hundred seventy go to pre-tax deductions this means that the four hundred seventy get directly subtracted from my gross income before the government takes its share these four hundred and seventy or for two main reasons one my retirement fund or known as 401 K and two for my insurance so my dental vision and health insurance are included intersection this leaves me with six thousand three hundred dollars the next section is a half piaced taxes I’ll file a single so again hit the hardest and I pay the federal government and the state government a total of two thousand dollars fifty this leaves me with around four thousand dollars three hundred per month after this I have after tax deductions in this case either option so I pay six hundred thirty dollars for company stock which I buy at a discounted price at the end only three thousand dollars six hundred per month actually make it into my pocket however since the company’s stock is optional I decided not to buy any stock I would actually taking home around four thousand dollars two hundred for the purposes of this video let’s assume I’m skipping the company stock to figure out the best possible car that I can afford right now after all my expenses so I will begin with my $4,000 200 in my pocket now let’s actually talk about the expenses I’m a relatively simple person so I don’t buy too many things so after looking through all my expenses I’m not only paying a thousand fifty for rent and about a thousand dollars for food gas and fun so this includes eating out visiting my family go to the movies gas for my car and buying random gadgets this leaves me with two thousand dollars one hundred fifty I gave myself one dollar 50 of safety I can realistically afford to pay two thousand dollars per month for a car I know there are extra expenses for maintenance and stuff but let’s assume maintenance will cancel out with a pay increase per year also on our dealerships offer a few years of free maintenance if a car is purchased brand new so now that I have my maximum possible of monthly payments let’s look at possible interest rate or APR so one of my credit cards actually offered me a free credit score check and after I pull it up it turns out that my curve score is seven hundred and seventy eight which is considered pretty good then I went online and found a few sources that indicated that if I were to get a car loan I will qualify for Lowe’s APR bracket in this case this assuming will be 3 point 33 percent and shown in this table now let’s go to a car calculator and see what I can actually afford so this is the admins website and this website actually gives you a calculator that allows you to all know how much car you can actually afford so right now I’m using the nine zero zero one two zip code which is downtown LA zip code and as we discuss the maximum downpayment that I can do pay is around two thousand and this lifted the loan term and a maximum of 72 months which is six years and based on my credit score I will qualify for a 3 point 33 percent to turn that to be true and this will occurred down payment of or a cash down payment I should say or five thousand and exactly so as you can see with these numbers a card at 123 thousand dollars is actually within my grasp which is crazy however the monthly payment is pretty high and the down payment is also relatively high in the long term it’s actually really awful so let’s do something more reasonable give myself an extra $500 a month why they claim with this so I tried 1500 and let’s decrease this to only sixty months which is five years and this needs a down payment same so we calculate even with these numbers the credit we can afford is actually around eight thousand dollars they owe us they were pretty nice car and this is when entry-level engineering position so as you can see the pressures that you can afford if you become an engineer is pretty nice so let’s just a safe range and look at some awesome cars that are a hundred thousand dollars so with an engineer income you can afford colors such as the Corvette zo6 the Dodge Viper the 911 Carrera S the BMW m3 and the Cadillac CTS just to name a few so as you can see there’s some pretty awesome cars as you can afford within this price range so that’s it for this video I wanted to keep this video relatively short but we are interested in more videos like these please leave a comment below with your dream car and subscribe for more videos [Music] you


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