Not sure if this belongs here or not. We (34 & 32) have just started to earn a decent income ~120k/yr after tax and the wife is talking about getting a second car (luxury suv – Audi/Lexus). Both work for crown corporations (so i think we are covered in terms of retirement) We will be financing the car so buying it will reduce our yearly savings from about 36k to 24k. We bought our home 2 years ago and want to get our basement finished (30-40k) and pay for my masters degree (8k). We have about 10k saved up in RRSPs and 40k in rainy day funds. The wife thinks I am being cheap when I say we should just purchase a 10 year old Toyota. Am I cheap or overly cautious?

Edit1: thank you all for your comments. few clarifications: we make 200k per year pre tax and pension contributions, comes to about take home of 120k per year after everything subtracted.. The cars we are looking at are 3 years used (the Audi Q5 includes a 5 year warranty and the Lexus rx350 doesn’t) I will not keep an Audi without warranty.. She will doesn’t want a new honda/Toyota/Mazda. Heck she won’t even consider an Acura. Pretty much set on Audi or Lexus. I have been able to talk he out of buying new…