<prompt> Human: As the title of the post reads, I just recently graduated University and am about to start a job making roughly 52k year pre-tax. I was very fortunate to graduate with no debt thanks to the generosity of my parents! I also have a savings of 8k stashed away from part time work That I plan on keeping for an emergency fund. I have been driving a 2002 Nissan Altima that isnt in the best shape throughout college and now that I am in a better financial position I would like to treat myself to a new Toyota or Lexus as they are dependable, safe, and hold their value quite well. I will be living at home for the next 12 months and will have no expenses besides my car note. I plan on maxing out my 401k contribution to get my full employer match and growing my savings to roughly 10k. Is it ridiculous to spend 30-40k on a new vehicle when I have this opportunity to create a large savings pile? A new vehicle is not a necessity, but I love cars and thought this may be as good an opportunity as any to splurge a bit. Thoughts PF?  <response>: 52kyear and you want to spend an entire year worth of take home pay on a 40k Lexus?This is why nobody has money. You make 52yr not 152. It is more money than you have ever had and way less than you think it is. Why do you think so many adults do not buy cars like this despite making more money?You spend 40k on a Lexus or Toyota and the car loses 6-7k the very first year. Depreciation alone will cost you 500month. 