How Much is Your Net Worth?

[Porkbelly]

I tend not to look at cost of car vs % of net worth as gauge of affordability. Net worth can be very high but income not. Then it might be a perilous ratio. Imo,
it shd be total car expenses per year verses income.
for a very popular toyota altis sedan, all in ie depreciation, petrol, maintenance, insurance, parking, fines etc it might work out to nearly $20kpa.
So if a person earns 200kpa, an altis would be a very comfortable 10% portion of his salary.

I concur with the bench-marking of car affordability with income, instead of net worth. It consistent with my approach with stock selection, which prioritizing earning, over net asset.

Having said so, the best still a multiple approach mean. Bench-marking with both % of net worth and income, and ROI which include the intangibles as highlighted by cory. Look at all the numbers, then the decision.

Totally agree..