Are you in USA? $2,200 for a 40k service is outrageous! It should be less than 1/4 that price.

But, no, I don't think someone on a 40k salary should be driving a luxury vehicle. That isn't financially prudent.

 

I definitely agree which is why I'm hesitant to even review any offers that fall under 50k a year. As for the service, I probably should have prefaced that the 2.2k is not just for the 40k but also included the alignment, rotation, wiper blades, and front / rear brake rotor replacements.

Volvos are notoriously expensive to maintain outside of warranty, from my experience spanning four decades and several Volvos. And I think that the newer ones are less reliable than the ones from 20-30 years ago. If you want to hang onto your 2018 XC60, just get an extended warranty; yeah, that would mean money up front, but it should help down the line. Alternatively, find a good independent mechanic who knows Volvos to do your 10k-mile servicing to save money, and just take problems as they pop up; chances are that you'll not need anything major until about 100k miles (fingers crossed)... If the car has been handling well so far, I'd just take my chances, and if you get in too deep with too many nagging expenses, you can sell it at any point... My 2001 V70XC has cost me about $2k-$3k per year, on average, to keep on the road the past decade, as many things start to fail in an older car (not something you should have to worry about with a 4-year-old vehicle, in theory at least).

Well, as I type this, the car is in the body shop because a snowplow decided to smack it so they're fixing it but after doing the 40k, it started making a noise that I can only describe as being a whump thump thump sound. My friend describes it as being like a washing machine doing a full load. It's mainly coming from the front and my other friend thinks it could be the wheel bearing. I took a video of it and when the car comes back, I plan to take it straight to the dealership. (Which is a little sad considering I had my rental since the 18th of March and I am really not liking the Kia Optima they've given me.)

 

Volvos are notoriously expensive to maintain outside of warranty, from my experience spanning four decades and several Volvos. And I think that the newer ones are less reliable than the ones from 20-30 years ago. If you want to hang onto your 2018 XC60, just get an extended warranty; yeah, that would mean money up front, but it should help down the line. Alternatively, find a good independent mechanic who knows Volvos to do your 10k-mile servicing to save money, and just take problems as they pop up; chances are that you'll not need anything major until about 100k miles (fingers crossed)... If the car has been handling well so far, I'd just take my chances, and if you get in too deep with too many nagging expenses, you can sell it at any point... My 2001 V70XC has cost me about $2k-$3k per year, on average, to keep on the road the past decade, as many things start to fail in an older car (not something you should have to worry about with a 4-year-old vehicle, in theory at least). Even Toyotas can have problems, though on average they are much more reliable than are Volvos. But if you really like a car and are willing to put money into it when needed (meaning possibly sacrificing other things to put money aside in savings for future problems) -- and I know how that can put a smile on one's face -- then it may well be worth it. A Corolla is not the kind of car to put a smile on your face when you get inside it, or even look at it, so I can relate that a car can be a big emotional boost, especially when you're having a bad day (or week).

 

Well, being smacked by a snowplow potentially changes the game, unfortunately... When my second Volvo got rear-ended at a red light, it was never the same again after the body work, and I traded it in soon afterward (was only about a year old).

 

Well, that's not entirely comforting lol. Luckily it wasn't that badly damaged so I don't think it should be consequential? (I hope that is)

 

I say... go for it, life is to short. It's not like you'll have to starve to keep the car. Worst case scenario, you sell it with minimal loss.

 

My 2018 is currently at 130,000+ miles and it has been one of the cheapest vehicles I have owned so far. $120 for a pcv breather part and the basics like oil and brakes.learn to turn a wrench and do these things yourself. Cars are easy to work on for the most part and you'll save a TON in the long run. Thats all I have had to spend to keep it going and I beat the living hell out of my xc60. I think you'd be fine with a 40k/ year job to keep it going if you do not have a car payment on it.

 

I'd sell the car and get started on your career but it all depends on your priorities. To me it would be more important to get your foot in the door, having an opportunity to build something, than maintaining a car, no matter how nice it is.

 

I am really confused. Are you really making a first job out of college decision based on a car? Take the job that best sets you up for the future and if you can’t afford the car then sell it. You have many years in the future to buy and drive a luxury car. If you really need luxury go pick up a used BMW, Mercedes, Lexus, Audi, etc that is in your price range. This seems like a ridiculous question and decision. How did you buy the car and afford it to begin with while in college?

 

Ah, I knew I didn't word it as well as I should have. I'm not saying I'm basing a job on my expenses, I was wondering if anyone had an idea of what level of salary one would need to comfortably maintain a vehicle. I'm not saying I'm looking for that salary specifically but I was merely asking out of curiosity based on what offers I've been getting. I figured a 40k Salary would probably be enough since I don't have to worry about auto payments as the car is paid off and in my name already.

Driving a recent model European car like a Volvo, Mercedes, BMW, Porsche or Audi when you are just looking for your first real job out of college makes very little sense. You seem to be saying here's the income I need based on the expenses I have. You should really turn that around and get a good job and then determine what you can afford in terms of expenses based on your income. If you are wise, you would also deduct 10% of your annual gross income right off the top as savings as well. If you don't, you will likely end up not having cash when unexpected significant expenses come along and then you will be in credit card hell paying 20% interest on a credit card that will really make your finances a disaster.

Anyway, I'm going to step off of my soap box now. Good luck with whatever you end up doing.

I was merely asking a theoretical question as to what kind of a salary one would need to comfortably maintain an XC60, not saying that I'm targetting that salary right off the bat. It was just a mere exercise in theoretical planning that me and my mother were getting into since she thinks that 40k is enough to maintain a Volvo and I said most likely not and I was wondering what you guys thought.

MrTatch, consider yourself very lucky. I’m guessing your Volvo already paid for, probably by your Mom and Dad. Not too many college students drive around in recent model European vehicles. If all you have to worry about is the maintenance costs, that’s not too bad. Many people have to worry about BOTH car finance payments AND maintenance costs. If you find it’s unbearable and not working, then you do like your mom said, sell it and get a cheap reliable Japanese vehicle. Or maybe you can get your parents to bail you out. In any event, you’re still in a better position than probably 95% of other college students graduating this year (because your car is paid off). Classify this one into the “first world problems” category.

Well, yes you are guessing right, it is paid off already. I was just wondering in theory what the ideal salary would be to afford the maintenance, not saying that is what I'm demanding or anything like that.

Weren't you just posting the other day about buying a new 2022 R-Design? I'm so very confused by this financial situation. I assume your parents bought the car and told you the maintenance is your problem when you graduate? That's the only reason I can think "sell the car or do a masters" would be a conversation worth having.

I did and I was just making a joke since the dealership we bought it from originally was wanting to buy it back and they had new XC60's they were offering to us. I was only asking a theoretical question as to what salary could be sufficient enough to maintain the expenses of running an XC60 as a runabout.

 

Driving a recent model European car like a Volvo, Mercedes, BMW, Porsche or Audi when you are just looking for your first real job out of college makes very little sense. You seem to be saying here's the income I need based on the expenses I have. You should really turn that around and get a good job and then determine what you can afford in terms of expenses based on your income. If you are wise, you would also deduct 10% of your annual gross income right off the top as savings as well. If you don't, you will likely end up not having cash when unexpected significant expenses come along and then you will be in credit card hell paying 20% interest on a credit card that will really make your finances a disaster.

Anyway, I'm going to step off of my soap box now. Good luck with whatever you end up doing.

 

MrTatch, consider yourself very lucky. I’m guessing your Volvo already paid for, probably by your Mom and Dad. Not too many college students drive around in recent model European vehicles. If all you have to worry about is the maintenance costs, that’s not too bad. Many people have to worry about BOTH car finance payments AND maintenance costs. If you find it’s unbearable and not working, then you do like your mom said, sell it and get a cheap reliable Japanese vehicle. Or maybe you can get your parents to bail you out. In any event, you’re still in a better position than probably 95% of other college students graduating this year (because your car is paid off). Classify this one into the “first world problems” category.

 

Weren't you just posting the other day about buying a new 2022 R-Design? I'm so very confused by this financial situation. I assume your parents bought the car and told you the maintenance is your problem when you graduate? That's the only reason I can think "sell the car or do a masters" would be a conversation worth having.

 

Sell your car and get something cheaper to maintain. Not to mention on running cost such as insurance, and gas now. This car is not really cheap to run based on your salary. Perhaps get something economical and save up for your future rather than worrying about $$$ to maintain an used out of warranty car.

 

you can always get a nice car in the future. sell the car, buy a beater (japanese) and get your schooling done. once all done, and make serious $, then get another nice car!

 

Honestly, I would since the equity is so high on it but I formed a sentimental attachment to it since it really is my first nice, all-optioned-out, Volvo that I owned. The two prior ones were either low-optioned (my original Inscription had halogen headlights and my R-Design didn't even get the parking sensors or BLIS). So it's gonna be really tough letting it go to be honest but there's a big economic benefit if it is ever sold.

If the snowplow damage isn't the problem, then why the current noise problems that you mentioned? It depends on what's wrong with the car now. If it's paid off, there's no big repair expense now, and you really like it, then keep it and take it as it comes. Nobody knows how much it'll cost you, but it shouldn't (in theory) cost more than you can afford to pay on a $40k annual salary (noting that you'll have to pay annual taxes and insurance that may not be cheap, especially for a 22-year-old). So the answers you see here are either (1) do as your mother says, or (2) keep it if it's in ok shape and there are no loan payments on it, but be ready to sell if it gets too expensive for you to keep. Rather simple, really... Try doing (2), and revert to (1) if it's a pain.

Oh it's making that noise and I'm just hoping it's gonna be covered under warranty or else I'll be taking another hit in the wallet but I suppose luxury comes at a price, right? But yes, I definitely am planning to keep it as having no car payments is great so I can just focus on other expenses.

You are fortunate to have a paid off relatively newer car. I think the high maintenance costs you just paid are out of the ordinary. I haven’t spent that amount on the BMW, Acura, Volvo or Jeep that sit in my driveway. Since it’s paid off you are probably best off just keeping it and feeling lucky to have a paid off vehicle after just graduating. The $10k annual salary difference isn’t likely to make or break you in your ability to maintain the vehicle. I suggest again to take the job that is best for your future and not fight over a few dollars in the short term for a better long term career.

I definitely agree with your advice, I mainly want my masters for personal and professional gain and I suppose it can also help maintain the car in the long run lol.

What does the American Academy of Orthopaedic Surgeons (AAOS) have to do with anything?

Ha, good one!

 

If the snowplow damage isn't the problem, then why the current noise problems that you mentioned? It depends on what's wrong with the car now. If it's paid off, there's no big repair expense now, and you really like it, then keep it and take it as it comes. Nobody knows how much it'll cost you, but it shouldn't (in theory) cost more than you can afford to pay on a $40k annual salary (noting that you'll have to pay annual taxes and insurance that may not be cheap, especially for a 22-year-old). So the answers you see here are either (1) do as your mother says, or (2) keep it if it's in ok shape and there are no loan payments on it, but be ready to sell if it gets too expensive for you to keep. Rather simple, really... Try doing (2), and revert to (1) if it's a pain.

 

Now my question to everyone is that what do you all think is the adequate minimum salary one can have and still maintain the car to keep it running and issue-free. One thing is for sure though, I refuse to get rid of the car. It's one of the best cars I have ever owned and I love it. Hopefully, this can break up the monotony of AAOS threads as of recently.

What does the American Academy of Orthopaedic Surgeons (AAOS) have to do with anything?

 

I too would definitely place career before car, kind of like placing a foundation before you actually build. I graduated in 2013, but while I was starting my undergrad, I worked and volunteered in lower waged jobs while I saved up some money to pay for classes and for a car. The car I'm currently driving today is a 1998 S70 T5 that I was lucky enough to find and buy used for $6500. At the time in 2008 it was about 10 years old and with 94k miles. I would have loved to have a new car, but I knew that I would be able to afford something bigger in time. I named my car Bucephalus, after Alexander the Great's horse that carried him through battle after battle all the way from the ancient kingdom of Macedon to the Battle of the Hydaspes in modern day India, just as my S70 has carried me through work, school, and now my career in life. Outside of a few wear and tear repairs, the car has been flawless. After much investment in my career and saving up, I was able to place an order for a MY 22.5 S60 PE Extended Range, something that I probably wouldn't be in position to do if I had not worked my rear end off years ago! But, in the context of this question, I'm bringing home about net 80k/yr right now, and I would think (or hope) that's enough to maintain both of these cars

 

When I was making 40k I sure was not even close on thinking of owning a Volvo...

 

What do you all think is the adequate minimum salary one can have and still maintain the car to keep it running and issue-free?

The answer depends on your overall expenses (housing, food, essentials, etc.). Subtract your current (or anticipated) monthly costs from the monthly net of prospective earnings ($40k, $50k, etc.), and you'll get a sense of how much you can comfortably afford to maintain a car.

Note that if the job you accept is in a higher-cost locale, then fuel, insurance and registration will likely be more expensive. For perspective, to keep a 2021 T5 Momentum in downtown Los Angeles, with a clean driving record, logging 10k miles at an average $5.25 per gallon, ran me ~$5,600 for the first year (or $465/mo.). Add to that $300 to replace a damaged tire, $1,000 to repair/repaint a door damaged in a public garage, ~$300 for washes/vacuums at the local self-wash — you get the idea.

Personally, I'd be wary of keeping a SPA Volvo post-warranty on a sub-$50k income. But only you know your financial dynamics, and it's for you to determine what you're happiest with.

 

you can always get a nice car in the future. sell the car, buy a beater (japanese) and get your schooling done. once all done, and make serious $, then get another nice car!

A lot of good advice here, MrThatcherite, some of it similar to what I'll tell you here. The best financial advice I every got was: Never buy a new car; let someone else cover the "off the lot" depreciation. Never buy a car you can't pay cash for (which means comprising in the early years.) Put the monthly loan payments that you would be paying into a savings account (which takes some discipline.) Drive your car until it becomes unacceptably unreliable. (Despite what people say, it's always cheaper to fix the car you have than buy a new car, at least until the old car is unsafe or unfixable.). It works. I was just out of college working in a restaurant and bought a 30 year old Oldsmobile for $450. Drove it for four years, banking the $200/month "car payment". After four years I bought with cash a 2 year old Honda Accord that was like new. Drove it for 8 years, banking $200/month then paid cash for a one year old Volvo 240 wagon. As my income grew I basically created a "car fund" that money was moved into every month, increasing the amount as my income grew and I got more expensive cars. Since that first Volvo, I have bought two more Volvos (S40 and current XC60) two 5 series BMW's, and one Lexus 350, all cash. I can now buy pretty much any car I want any time I want. This takes a bit of discipline which is not hare, really, unless cars are what you want to spend your money on, and that's fine. Good luck!

 

Hey Everyone!
But so far, the majority of my offers have been around 40k and I calculated based on that salary, it would take two paychecks to cover a service (my 40k service cost me 2.2k). Now, she thinks I should sell the XC60 and get a Corolla, I say I should just get my Master's to solve this issue.

Now my question to everyone is that what do you all think is the adequate minimum salary one can have and still maintain the car to keep it running and issue-free. One thing is for sure though, I refuse to get rid of the car. It's one of the best cars I have ever owned and I love it. Hopefully, this can break up the monotony of AAOS threads as of recently.

Good luck on your job search.

The amount you can spend on car costs varies widely based on risk tolerance, age of the person, amount saved/invested, and any student loan debt.

Edmunds true cost to own has good cost calculators for 15k mile a year scenarios, which don't change too much if you drive less or more than 15k since depreciation is the main cost. Used cars don't save too much for cost of ownership aside from used luxury cars.

A toyota corolla type car, whether new or used costs about 6k a year for operating costs (insurance, repairs, maintenance, depreciation, etc) while a Camry costs about 8-9k and a Volvo S60 or XC60 will be about 10-12k a year depending on age and trim level, etc.

Regarding starting college grad salaries, 55k to 75k is the average nowadays. 60k is actually not that much for a student just out of a 4 year college degree. You'd be surprised how easy it is to approach 100k without a college degree. Off the top of my head, associate's degree nurse, dental hygienist, certain jobs in the trades, ultrasound tech, etc can all approach 6 figures with some hard work.

What Is the Average Salary for Bachelor Degree Graduates? | Indeed.com

Discover the average salary for college graduates in addition to which fields pay the most.

www.indeed.com

If you make 50k gross let's say, then I would highly recommend getting a toyota corolla or honda accord type of car, and definitely not the higher trims. Used vs new has similar cost of ownership.

XC60 type of cars should really be bought by people making 150k or more, imho, but it depends on your financial obligations. A married person with 3 dependents can't spend as much on cars. As long as you're saving or investing 15% or more of your gross income you're good for retirement. This is assuming you have minimal student debt.

I see a ton of people with 40k+ cars who struggle to survive month to month. I know people with household incomes of under 100k who have a newish pickup truck, 50k luxury car, and then another car. And a mortgage. And student loan debt. And little savings.

I personally save over 50% of my gross income but it's mostly due to frugality and relatively high income. Used to save even more.

It's not good to delay gratification too much but there's wisdom in finding a balance. I got my lightly used Volvo after many years of professional school; one extreme would be getting the nice car right after college and another would be avoiding getting a luxury car until you make 500,000 a year and at age 40. When I was 22 I was driving an old Honda Civic type of car, upgraded to a 5 year old midsize sedan in professional school then at 30+ finally got my Volvo.

Let's say you make 50k gross a year in a below COL area like Des Moines, IA, that's about 33.6 k net after deducting 15% of your income for your 401k.

Tax Guide

Take away 11.6k a year per edmunds true cost to own for annual operating cost of a 2018 XC60 T5 inscription and you now have 22k. Take away even 1k a month for housing costs and now you have 10k a year left.

Is 10k enough for health insurance, emergencies that crop up, food, utilities, disability insurnace, +/- life insurance (not needed if you have no dependents), umbrella, etc? Only you can decide. This is assuming there's no educational debt nor consumer debt.

 

As long as you're saving or investing 15% or more of your gross income you're good for retirement.

way too low, imo! WAY too low!

 

Honestly. If you are earning $40K a year, you probably won’t even get the full amount after taxes and deductions. Keep in that in mind.

 

I appreciate everyone's input! I'm definitely still on the job hunt but hopefully, something crops up, if not, it's no harm nor foul. I still gotta get my Master's anyway before I can pursue the big bucks lol. As for the car, I'm definitely keeping it for the long-term since the new XC60's have AAOS and I'm not particularly a big fan of it anyway. Plus, it may be the last of the pure ICE Volvo's so if the stars somehow align in the sky, it might just become collectable in the far future.

 

Fully agree about career before car, but no one has mentioned that the premise of the question is wrong! Has anyone EVER one an argument with their mother? 😆

Not saying a Corolla is right, but she's right on this (and probably usually is).

 

I will give you this advice as someone probably not much older than you (36 years old). Live as cheaply as you can in your early years coming out of college because at some point soon you probably won’t have the choice.

I think about all the money I wasted on stuff, that in hindsight, was stupid and kick myself, but live and learn.

I have no idea your financial situation, but assuming you’re in the US, $60k will be gone before you know it after you pay rent, utilities, insurance, student loans if you have them, etc.

I came out of college 14 years ago making $55k a year, no student loan debt and thinking I was going to be rolling in cash. Boy was I wrong. I still had money to save, but not nearly what I thought I would have.

Sell that thing, buy something cheaper to drive, insure, operate, etc and pay down any debts you may have. If you have extra after everything is done and paid, put it into a 401k. A lot less sexy than a nice car, but a much better long term investment if you don’t want to be eating dog food in your golden years.

Doing so now, while you have few responsibilities, will allow you to enjoy other hobbies/interests and set you up for a successful future. Cars are a depreciating asset that one should only spend excessive amounts of money on after everything else has been covered.

I’ll get down from my old man soap box now. Good luck.

 

If your sole criteria for a job is being able to support your car, you have too much car.
Getting a Master's Degree to make more money to support your car? Good luck. How much would that cost? How many years can you maintain the car for what the degree would cost, also including not earning money while you do it?
You don't say what field you envision being in. What guarantee do you have that the degree will make you lots more money?
I'm with Mom. Grow up and face reality.

 

Now my question to everyone is that what do you all think is the adequate minimum salary one can have and still maintain the car to keep it running and issue-free. One thing is for sure though, I refuse to get rid of the car. It's one of the best cars I have ever owned and I love it. Hopefully, this can break up the monotony of AAOS threads as of recently.

Somewhat impossible to answer your "adequate minimum salary" needed question. As for annual Volvo mtce/repair cost, it will vary substantially between dealer and independent garage. After the warranty expires, IMO you'd be better to use an independent repair shop. Plus, it will depend on the degree you wish to maintain your car to OEM level, and how much the car is used (and where). My 2020 factory ordered V90 Inscription T6 is still under factory warranty and has been problem free, except for a BLIS glitch. In my particular case, I elected to purchase the prepaid mtce plan, once the initial Volvo-provided 3 yr/30K service is used up. This covers the Volvo mtce schedule for yr 4/40K thru yr 10/100K (oil/oil filter, brake fluid replacement, air filter replacement, spark plug replacement, etc). This prepaid plan, in my case, for my car/age/mileage, averaged out to $365/yr for years 4-10 or 40K-100K. Of course, this doesn't address the cost for periodic brake jobs, tire replacement/wheel balancing, and other mechanical things that could go wrong. As an example, I've seen forum members state dealer brake job costing $700 or more (two wheels, brakes/rotors) or easily over $1000 for all four wheels. Dealer charges for an AC system repair, alternator or turbo replacement (I'm sure) can easily approach $2K or more. Personally speaking, I would never advise anyone on a limited budget to own a "luxury" car, with the possible exception of a Lexus ES or IS, unless they have very good DIY skills. More likely, I'd encourage them to look at a Toyota or Honda, if the budget demands it. Good luck.