Title | : | How Much Car Can You Really Afford? (By Salary) |
Lasting | : | 12.39 |
Date of publication | : | |
Views | : | 998 rb |
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We're just about at 1M! Thanks for all the support and love 🙏 Make sure to checkout the Free 🐪 Hump Days Newsletter ➭ humpdayssubstackcom Comment from : Humphrey Yang |
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If you are getting a loan to buy a car, you can't afford it Comment from : Zach Jones |
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All my cars have been used and cheap I can't comprehend not just buying a car outright let alone an insane payment of a grand or over a month Comment from : Nolan 61 |
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Considering most high quality cars cost $20k+, how can one even apply the 35 rule? Comment from : Reader 66 |
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I make 50k a year, but my question is, can I get a 28k car with a 5 down payment- I feel like I can afford it but inflation makes me have these doubts lol Comment from : Kaoly Thao, Psycho, Sweetie and Minnie |
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I would recommend buying extended warranty if buying a Luxury used car Might cost a couple thousands at first but would save you thousands if you want to keep the car longer if it breaks You don't know how the previous owner took care of it or if anything could happen to your car at any moment Personal experience Comment from : Rafael Toledo |
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I am fine paying more for a car, as I am totally comfortable doing some maintenance myself I don't like paying for longer than 3 years though, and I prefer down payment to be between 30 to 50 Also, I drive my car once or twice per week, and never drive to locations that I can just walk to I spend between $40 to $80 on fuel per month This is in the Balkans though Comment from : Milos |
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I bought my latest car for $300😂 fk paying all those car notes… Comment from : Gold Wolf |
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I sold cars in affluent areas outside of Dallas and Philadelphia Without fail, the more affluent ppl were, the more concerned they were about their monthly payment It was always the ppl who had no money coming in and signing their lives away on the line Comment from : Sean L |
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My car payment was 472 and I pay an extra 100 to the principle for about a year Managed to pay it off in full this week Tired of paying car loans next car I’m saving up as much a possible for a down payment Comment from : WHOLESOME DEUS |
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I bought a used Mitsubishi Space Star for less than 10k$ cash Sure, sometimes I wish to have a car that's a bit flashier, but it gets me from A to B and was probably one of the more responsible decisions I made in my life My anual gross salary is around 80k$, so theoretically I could maybe afford more, but to me it doesn't really make sense to spend that much on a car, because you will be stuck in traffic for the same amount of time (at least where I live) Comment from : Felix1 |
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Cars are unaffordable for most people They don’t really make cars under $20k anymore Comment from : Brandon B |
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So I know you said get a used car is better especially one that’s 3 years old which I am leaning towards, but is it still good to finance it? Please let me know! Comment from : Brian Villafuerte |
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I make 120k a year and I’m still driving a 2007 Toyota FJ Cruiser with 224,000 miles on it Comment from : Victor Saenz |
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My brotherim pretty heartbroken today last week i went thru everything to get the lease going for three years on the new 2024 Hyundai Tucson SEL versionand this morning im supposed to pick it up and they called me and said i didnt get approved 💔my pops said not to worry it was a blesssing in disguisenow im not sure what to doshould i finance a used vehiclei really wanted an suv for this upcoming winternow i have to settle for less? What you think i should do Comment from : James Beauchamps |
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Actually, you should be accounting for maintenance and replacement of parts through the life of the car This is grossly more expensive than you can reasonably estimate, but every tank, tune-up, and tires runs you way more It could be THOUSANDS more a year than you’re ready forbrbrAlso the Honda owner comes out ahead of the BMW driver, cause their car ran throughout the financing period and spent less time at the mechanic’s Comment from : _oe _o_e_ |
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No thousand dollar car payments are not the norm… Comment from : Ray Glinsky |
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Man, i live in the shitty ass Philippines and when I calculated my annual to monthly, i can't afford any cars 3 years used or bnew 😂Take note my salary is considered middle class here Fckng car dealership suck ass Comment from : Progenies Of The toilet paper holder |
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My motto is, If you can’t buy it twice you can’t afford it Comment from : Beastmode12 |
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The 35 rule is a joke!! You're not gonna buy a new car every year for Christ sake!!! What's the point of this rule?? Comment from : kostashow |
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Have a 2017 lexus IS 200t About to pay it off in a couple months About $330 a month Been considering an upgrade but hard to justify when thinking of all the other things i rather spend $300 a month onbrbrThe car itself was roughly 15 of my current salary annual salary when i bought itbrbrShould i upgrade? It runs fine, maintence is cheap But i been craving something faster for no reason Comment from : HK Boba |
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Good points Thank you for speaking about opportunity cost As a CPA, this is one of my huge pet peeves when people discuss making sound financial decisions It might feel nice and dandy to own the car up front, but you are forgoing all that potential growth on the free market brbrI would also say that car loan term length is not really relevant While yes, you will pay more interest on a depreciating asset, the benefit of more cash in your pocket from month to month is a superior position to be in If you follow the rule of owning at least 20 of the car up front, the term is irrelevant Just manage cashflow, and use excess cash to build wealth Comment from : JBay |
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This information was relevant in 2019 In 2023 Honda Civics are 40k and dealers don’t care if you pay in cash They make more off the financing The real problem is most car dealers are plain greedy Comment from : Franz Kemple |
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I make a certain amount, but post tax I make half my salarybrIt’s just getting expensive and inconvenient to use Rideshare get groceries delivered ugh Comment from : Nadia Dansani |
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why down??? adding 20 down is basically tossing money into a depreciating asset the moment you drive away with it, you've lost your down payment Comment from : HA |
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I learned a lot in such a short video also learned that I have to make 100k to buy a car that's 25k, which in today's market, is the basic of all basics with very minimal options lmao Time to move back home where public transportation is cheap and can take you anywhere /shrug Comment from : Nick W |
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So in my country I can afford nothing, I maje 14,000 (that líder 4 times minimum wage) a year and cars cost even more than in US 🤡 Comment from : Ireliar |
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Never had a single car payment before and never will I drive a 98 Honda CRV and a 97 Lexus ES300 and do all of my car repairs and maintenance myself I work in the computer software industry and people are surprised I don't drive a Porsche It's amazing how many people go about driving their brand new sports car but can only afford to sit on their orange juice cartons in their unfurnished one bedroom apartment Comment from : StishFicks |
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These figures are skewed Someone making 40k a year is barely paying their rent and groceries Therefore I would start at a much higher income This might be correct if you were still living at home with mom and dad and they were charging you $500 for rent Comment from : Unknown Drummer |
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By that rule I can afford $10 a month car payment after insurance, maintenance, and gas :( Comment from : Quinoa Jones |
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I make between 285k - 345k depending on bonus Drive a 2008 Lexus ES350 Ultra Luxury edition 272k miles on it right now, I paid $8500 cash for it 8 years ago Beautiful car I don’t really know much about cars but I guess I’d recommend Lexus for my experience Comment from : Andrew Norton |
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If you have kids you need a bigger vehicle Comment from : Relax with Me |
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the 10 rule makes no sense, bc if i set my monthly payment so low, i would pay double, the percentage is 3588 a year, so taking a three year loan is crazy Comment from : Н |
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Always pay off your car within 6-12 months Comment from : Trudeau da fraud |
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Haha 3-5 year civics are selling for new msrp of the base models It's insane Depreciation doesn't seem to be real anymore Glad I bought my used hot hatch in 2020 and wait to upgrade in the middle of the next recession Comment from : Trudeau da fraud |
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You’re not taking into consideration the people that are rolling over their old car notes that are never paid off so of course you’re gonna have people with insane car payments and this is nothing new I knew people 20 years ago who had $1500 a month payments because they just kept rolling over People don’t want to buy what they can afford They buy what they want Comment from : Tea Stains |
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I'm seventy two and I've never had a car payment I've paid cash for every car I',ve owned I don,t spend money on depreciating things like a car Comment from : John Coll |
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Car affordability table is an absolute joke If you follow this principle, you will stay poor your entire life Comment from : Dustin Nelson |
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I gross 32k yearly how in the world could I afford a decent car if I have to pay $272 monthly including insurance, insurance alone for a used car which is all I can afford can easily be $200+ for me as a 20 year old Comment from : Corben Turner |
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When you drive a ton of miles you want something that isn’t constantly breaking down used gas always cost me more than new honestly Comment from : Bill Bill |
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The Summers Rule save buy a car full price only pay insurance relax after Comment from : ReyRey9752 |
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Great practical video Comment from : David Hayes |
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6:48 Comment from : LULU |
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I think I'm in the minority where I could afford a new car but I'm still driving a piece of shit to not have a car payment 😂😂🤷 Comment from : Mexican Shooter |
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Woah Did I miss something? Am I the only one that thinks the math didn't add up on financing vs cash? Sure 10 return if people invested it, but what about the interest being paid on the remaining $20K??? 10:37 Comment from : dbdan61 |
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What about receiving a significant lump sum from investments ? If you can pay for the vehicle in a single lump sum ? Comment from : Sa Sa |
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I'm 62 -- and have never had a car payment in my life Yes, it's very possible And incredibly freeing Comment from : DavidinSLO |
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How do you calculate what you can for families who need 2 cars? Do you just split that affordability figure in half for each person? Comment from : Katie |
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I'm saving up right now to put 7-8000 down on a 15-16,000 car, preferably a buick i saw a few I really liked But im only at $3000 right now and still have atleast 7 months left to save up $200 a week im putting away Comment from : Jackson Billy |
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What's a car payment? Comment from : Gino L |
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In this high intrest rate times, were car loan intrest goes about 7 (at least in my country), doesn't it make more sense to pay in cash?brSince for my investment to beat the 7 at these volatile times is pretty hard Comment from : גל יוגב |
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Getting a brand new car was the biggest financial mistake I had made in several years Getting rid of it and getting into something cheaper was the best decision at the end of the day One lesson that I learned is that cars all essentially serve the same purpose (for most people), getting you from point A to point B IMO the biggest reason that people get expensive cars is for the vanity of it Comment from : Angel C |
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These are rookie numbers Even 10 is a bit much Comment from : Adeel T |
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I’m going to make about 80k once I graduate but I really wanted to get a hybrid which are around $40k new rn :( so I’m wondering if I should buy a used hybrid? Comment from : Sam |
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I assume that a car is going to significantly depreciate A car is not a good investment at all, however, it is worth driving something that makes you feel great on the road I went from feeling shame about my car, but having it paid off, to feeling amazing about my car (although I still bought a used luxury car with the depreciation already mostly paid) I have no other bills (except utilities), so I can afford more than my monthly payment and pay as much as I can monthly to pay it off sooner and with less interest paid It is worth it to me to drive a dream car and be very comfortable riding around Plus, my confidence has gone up, and that creates an abundance mindset, which is making me more money Comment from : Elisian Designs |
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35 Sounds like house payment territory I Have had 19 cars 15 new Kept an average of 8 years and have yet to make a monthly interest payment Insurance, maintenance and gas are plenty enough to budget for Requires advance saving and delayed gratification Oldest son just got his second car at age 44 Civic for the last 18 years Options exist …brbrLeasing and rolling very three years seems like a great deal …for the car industry…total dollars spent over 21 years for instance …7 cars would be $$$$$ Comment from : Steven Black |
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Damn, I love efficient videos Well done! Comment from : Ezra Chairez |
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I make 200K and still drive a 2000 Toyota Solara with 220,000 miles Finally traded the car in last month for a 2012 Honda Odyssey with 120,000 miles Comment from : IAMSESTAK |
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I have a simple rule - 3 months worth of salary and not a cent more And even that's too much if you have a decent income Comment from : wompaper |
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bWILDVESTCORPS PAGE/b Your expertise in cryptocurrency shines through your analysis: Comment from : Morgan Shawn |
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I would have no problem buying a cheaper car, except I live in upper New England where we have very salty wintery roads, and even on 2018's, there is bad rust on some parts I'm afraid I'll have to bite the bullet, buy new, keep it undercoated, and make it last Comment from : Dwight Schrute |
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imagine living in singapore where cars are the most expensive in the world, having 50k downpayments and 1k/month for even a basic corolla and seeing the "monthly payment should be less than 10 of monthly income"brbrbasically you need to be making 6 figures to afford any car in Singapore sigh Comment from : Volentry |
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just get the loan 3/4 years payment table from car dealership and try to save up every month with that amount, after 3 years you will get even better car, even better if you switch your cash saving to gold bar Comment from : Artos Pandita |
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I’m still gonna get a C7 corvette! Comment from : ryan |
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Unfortunately, I had to give up my 18 y 4runner ( feels like my child left for college), paid 40k, finished with 250k miles, received 9k, and spent a total of around 5k for oil and repairs, I was blessed with free husband labor and quality car New hunt for the vehicle punch me into the guts, wait list, high prices, still no light at the end of the tunnel Did I mention dealing with dealerships? Would buy Tesla ,but qality control is not very impressive, and I don't need an overpriced computer Comment from : Renoir |
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The real secret is just buying a car outright that you can afford, also considering any maintenance costs for the foreseeable future For probably 90+ of people, that likely means not getting the car that they WANT, but it's the smart choice The auto industry has sold too many people on the idea of getting their dream car before they can ACTUALLY afford it, and it's at the buyer's expense EVERY TIME Don't be a fool Drive a cheap car and use that saved money to better your life in more important ways Comment from : electrogeek1996 |
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I agree with everything except the 10 being the gross monthly income because we pay taxes so it should be net income Comment from : Cam |
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Car prices have gone up here, especially used cars and i dont know why I am between breaking my bank account for a slightly new car that is reliable and overpriced or buying garbage I have a good job but buying a car for 35 is a horrible idea, you will end up buying another car in the near future and now you bought 2 depreciating assist instead of one that will last you 5-7 years Comment from : MeanKronen |
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I want a Porsche GTS 40 but i only make 50k a year :( Comment from : Clifton Roger |
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Down payment is against my religion 😂 but if that works for some people cool 😊 Comment from : Dawone Diggs |
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I plan on getting a Prius hybrid I make 77K and I plan on just buying it cash, I don't want to pay more just to borrow money Comment from : Luis Aguilar |
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I haven't had a car payment since March of 2015 I don't drive that much anymore and Every time I think about getting a new car I ask myself "Why would I give myself a car payment if I don't need to?" End of discussion Comment from : s_reif78 |
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2012 Honda CRV, with about 78,000 miles; still chugging, so far, knock on wood brI would like to get something newer (but still used) like a Toyota Highlander or Honda Passport, but vehicles are expensive Comment from : Jeffrey Bischoff |
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In Canada at least, finding a reliable car for under $14k would take a certain level of expertise that most people don't have Comment from : Beau Tanner |
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Outstanding I paid cash for my used car and pocketed all the subsidies from my city & county job Big relief Comment from : DL Mosa |
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I enjoy the driving enjoyment of a Porsche without the maintenance cost by driving the Japanese Porsche known as Mazda MX-5 Miata Got it for $28k, 3 years old, 16k miles My salary is north of $200k and paid cash so I also enjoy the no monthly payment too Mazda is becoming good at rebranding as the financially smart upmarket choice Comment from : ultrasummit |
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As a rule of thumb an easier calculation is the following: Your car shouldn´t exceed 90 of your annual salary Comment from : Alejandro Giha |
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This surprised me I'm in Canada an I financed a Subaru Crosstrek in 2019 at 19 My monthly payment is about $430/month over 60 months (I have 22 payments left I think) Given a salary, at the time, of about $105k I guess I'm well under what I can affordbrbrI immediately started putting away $50/pay for repairs and of course the next car Next year when it's paid off, that will be upped to $250 (make the same payment, just to myself now) I plan to drive it until at least 2029, at which point I expect to have about $40k as a down payment for the next one Comment from : Ian Pattison |
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My current truck cost more than what someone in the $80k range should be buying according to this video That's also more than I make That was also prior to the car market skyrocketing My truck was used and on the lower end of pricing for what I was looking forbrbrMy point: good luck finding vehicles within your price range these days based on the market and what this video is suggesting Some 10 year old vehicles are beyond what the suggested price is on here Comment from : RedWings-44 |
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Wait Biggest cost of cars is repairs, maintenance, gasing up and tolls should you live where tolls exist The car payment is just the tip of the iceberg Comment from : Ben Charlie |
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If you had a true interest in changing people's lives, focusing on learning how money works, ie, paying $600 a month for a car note vs putting $600 a month into retirement You're not helping anyone focusing on the problem Become the solution my friend!!!! Comment from : M Emert |
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There is no reason for people to pay that kind of money for a car! This is where a fool and their money soon part is proven as a rule A car gets you from A to B That’s it Nothing more If you assess your worth by the car you drive, you have serious self esteem problems Comment from : Ben Charlie |
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The depreciation rule for new cars used to be true, but not during times like this with insane inflation rates The CX-5 I bought 2 years ago and drove 20k miles on is worth more now than when it was new Also, I could have bought it outright with cash, but it was 0 APR It was smarter to get the loan and pay it off over the maximum 5 years they allowed for me Comment from : Scott Wright |
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I got to get a new car my teenager wrecked my car so now I’m car less My 2013 car was paid off but now i got to get a car note Comment from : M Scott |
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I buy $3000 cars cash I haven't had a payment in over 10 years I did have to learn how to turn a wrench, but I don't think that's a bad thing Comment from : Villa Pinstriping |
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If you have a non hybrid , keeping your car is costing you more money than buying Comment from : eckhart tolle |
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Is a 3 year old used car really cheaper?brbrFor example, a base 2023 Toyota Rav4 is $29,610 MSRP Assuming the car lasts 200,000 miles, that's 148 cents a milebrA base 2020 Rav4 with 36k miles is $25,291 Assuming it also lasts to 200k miles, that will cost you 154 cents a mile More than the new car And the new car will have lower maintenance costs for the first 3 yearsbrbrGranted, pick a car the depreciates faster than a Toyota (or Honda) and you'll get a better result for used But he says to buy a reliable car, and reliable cars are the ones that depreciate slowly Comment from : Nightcrawlerfive |
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You can't just look at salary to judge how much car you can afford Take two people both making $50k One has no money in the bank and has a mortgage, student loan, and is carrying credit card debt The other has $200k in savings and has no debt The second person can clearly afford to pay more for a car even though they have the same income Comment from : Nightcrawlerfive |
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One thing that often gets overlooked is registration costs and insurance costs Our current 2 cars (14 and 15 years old) cost only $60/month for registration and insurance 2 cars that are just a few years old could easily costs 6X that Comment from : Lucas L |
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Bruh I make $20k 💀 Comment from : Pain |
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My parents taught us this way Both still have their 2011 and 2012 sedans (an Alfa 159 and a MB c class) Both are lovely cars despite the age (which isn’t that much imo), and we are much safer economically that people living in much worse houses, in debt and rarely traveling They’re both dentistsbrbrI actually drive a newer car, a diesel 208 given as a gift, but only because I started driving after they had bought their current cars I plan to keep it forever 😂 and it’s actually very reliable Comment from : Felipe A |
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my wife and I combined income is 150,000 time to get a car for 1250 a month! Comment from : Ryan Lennon |
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I'm 33 and about to get my first car via car payment 60 months7 interest car is 195k including 3yr warranty I'm gonna put 5-6k down Is it true or false if I pay it off early it will hurt my credit score? Or will it help? Comment from : Jumpman765 |
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