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As a finance manager at a car dealership, I would suggest the opposite. Toyota hold their value extremely well. Buying it used wouldn’t be wise as the savings wouldn’t be that great. I would buy an used GM or Chrysler product. They depreciate like a rock for the first 3-4 years, then they level off nicely. Often after 3-4 years when the warranty is over, the vehicle is only worth half its original cost. The vehicle will still be relatively new and trouble-free (in most cases). The previous owner would have absorbed a big portion of the depreciation.
There is no way I would recommend to someone to buy a GM or Chrysler over a Toyota. Sure, you'll obviously pay more for the Toyota but over the life of the car, you will save both money and sanity as your car won't be in the shop every other month.@@mrslcom
@@mrslcom Let me guess you have a nice big service department where she can bring in that crappy Chrysler product where she can get it serviced for a fee of course. Nope she's better off getting more trouble free reliable use from that Toyota or Honda, and like you said they hold their value very well when she decides to upgrade unlike the Chrysler in which she would get salvage value for it.
@@michaelb.8953Buy American cars used and buy Toyota new and hold onto it is the right strategy. I did exactly that. Bought a 3 year old Ford Taurus with 100K km ，drove another 200K km in 12 years. There were some repairs towards the end, but these repairs were a few hundred dollars. I did a final tally, the second hand American car costed me 1500 dollars per year, including the initial purchase and all the maintenance and repairs (oil tire replacement …). It was actually extremely cheap. In fact I project my new Toyota can never match.😂. My Toyota bought new, would need to drive 20 years with zero maintenance and repairs to match 1500 dollars annual cost of the Ford Taurus. But clearly I also enjoy trouble free Toyota. That said, Toyota is the past also. EV is reshuffling the landscape. What EV cars should we buy, is the most interesting question. My current strategy is holding on to the Toyota long enough (car inflation is horrendous now) to get the mature autonomous EV.😂
Former car guy here, I left because car culture became who could owe the bank the most. Everyone pretended like they had money...when in actuality, people were even financing car parts!! Sad state of affairs. Most will never admit it, but not everyone should or can afford even an 'average' car of $43k (crazy high compared to pre-pandemic).
@@scruf153 I bet you do!! I used to be all into cars and off-roading, etc. being the cool guy, whatever. When I moved to the city my insurance tripled, literally. I said hell no. Got an ebike first. No insurance, no parking tax, no gas! Ended up getting a motorcycle for longer distance though
I did everything so wrong. SMH. I grew up in a very financially illiterate household. Even though everyone made good money, they spent it like they were dying tomorrow. SMH I’m taking it upon myself to develop better habits and stop this
@@carlosmcse The more you spend today, the less you have tomorrow. The difference between someone investing their money for 20+ years, and those spending every cent, can be millions of dollars. Discipline is sacrificing what you want today, for what you want tomorrow. Discipline creates a better future for us all.
One of the best financial decisions I made was deciding to leave car centric society. So much more freedom in places with good options for getting around.
I left the city for the same reason. Went to a coastal rural area, walking, biking, or using a small motorcycle is the norm and not big cars that causes traffic in these areas due to narrow road networks.
Now how much more are you spending on housing? It isn't possible for me to go without a car because my company is in an industrial park with zero reasonable access to public transit, but if it were the walkable neighborhoods here easily cost $1k or more a month in rent for the same place than a cheaper place further out. Now car ownership does have costs but it's not 1k a month in additional costs.
@@mikeydude750I pay less than 500 USD per month because I live in South Korea. I'm an English teacher. I took a pay cut to be here but it still works out to more in savings than all told back home in Canada. You can do that man if you want. Not sure why you seem defensive about my talking about finding a preference to a lifestyle without a car.
The average cost of a car now (brand new) is over 45k while the average household income is around 67k. So basically the average person in the u.s cannot afford a new car
It's the Kardashian effect. "Influencers" on the internet sitting on Lambos, Ferrari's and every Joe thinks they need to drive an expensive car too. It's also why there's so much crime now because they can't afford that lifestyle, so they steal it and can count on not being punished for it.
@@bonwatchernewsflash. Crime has been declining for decades. The crimerate is just about half of what it was 30 years ago. It doesn't have anything to do with car prices influencers or "lifestyles"
Good advice. Don't go alone to the dealership either. Bring a friend, family member, etc to be your second set of eyes and to help you go over the bill of sale, inspection of the car etc. With my base salary of $72k per year, I keep my used car purchases between $10k to $15k. So yeah, new car purchases are out of the question for me personally. I have priorities, like paying off my mortgage, savings and investing. I'm a DIY, so well maintained, proven to be reliable vehicles like Toyota and Lexus with 100k plus miles for me are not a problem. Subscribed
@@rainfallseattle I've been burned before, so that's how I know unfortunately 👍. If I can help justify one person have a better experience with buying a car, I'm happy 👍
Haven’t bought a new new car since 2005. I’ve been buying, repairing, upgrading used vehicles. The most motivating thing about buying a used car outright is the monthly payment. Zero. Because a use vehicle is a on going project, whatever you put into it gradually, it will NEVER exceed the amount of a monthly car payment and full coverage insurance. Unless the motor or transmission goes out. But this means you chose poorly to begin with. Buying and replacing a alternator, a starter, shocks, struts, power steering pump, radiator, etc…. This has been working for me really well. The average car payment in the US is $700 now. Insurance depends on the model you drive, your area, insurer, and driving history. Great vid. Good luck all.
I had $600/month payments on my lexus IS. Since I paid it off, man I feel rich now. Saving so much money. I wouldn't do it again for this reason. I think the best thing to do is save up a few thousand for a down payment, and buy a used car on the shortest term possible where your monthly payments are at most 15% of your monthly next income
This is presented very well for a "car first" mindset. I prefer to approach it from a "net worth" mindset. In my opinion, depreciating assets should be at the very bottom of the priority list and instead start with budgeting for critical items like food, shelter, clothing, saving, investing, and giving. A disciplined approach to well funded foundation allows clear headed budgeting for car+fees, entertainment, travel, etc.
That is a better way to think of it. People think buying designer is a waste of money but if they aren't using the money, might as well. My $4k chanel bag is now $5k after a year. The $20k damage porsche cayman we got was fixed up for $3k and is now $30k.
I have never owned a car and I think that was a very fortunate for me. The main downside was not the price tag, you can easily get a car suited to your budget, but the maintenance - insurance, petrol, tires and repairs. I never needed a car to get to work, and in those few rare emergencies when you needed to get to hospital, I called Uber. Car’s existence in my life never justified itself. If I grew up on the country side or countries like US where the whole logistic is build around owning a car, would be different but here in Europe, I never had the need.
I used to live in NYC for 15 years. I was the guy who thought I would not ever need a car. After I moved to a suburban area, I still survived without a car for more than a year (I used Uber). However, no matter where you live, once you have a baby, you should have it. So this one would be helpful when you plan to have a baby.
Given today's car prices, I would include the down payment in the 35% figure, personally. If you don't have the resource of a lot of cash upfront, you still have the resource of time to save a higher down payment. If you don't have either, that's when you get creative with finding a less expensive used car for now, then start setting aside the savings to replace it.
U can always play with the dealership. Young black guy with barely any fashion sense. Walked in to buy a new car n said I don’t wanna pay anything more than $250 a month. The way they looked at me when I said that was hilarious. They “crunched” the numbers n “lowered” the price of the car to “listing price.” Then I wrote a check for half of it n payed off the rest in a lil more than a year
Thanks for the infomation, very helpful! By the way, I also want to mention, the 20-4-10 rule(not in the template) is much more concervative and nearly always govern your affordable car price.
Thanks this information was very helpful im in my 54 and i have never bought a brand new car only used Honda accord and i drive them until they die usually around 500k kilometers i own my house and im debt free and im currently driving a 2015 honda touring life is good😂
I want a Lexus es 350h so bad, but I just have to keep telling myself the next years model will only be more worth it I just have to keep saving and it will be more realistic
buy used in cash with money you already have. any further incoming paychecks are then only responsible for maintenance and usage, not for payments towards ownership. and if you don't have enough, wait or get a cheaper used car.
Don’t complicate things, it just should be more than 15-20 percent of your annual income after taxes. That includes insurance, payment, maintenance costs.
Why do people use gross income for these types of calculations? I mean why do we take into account someone else's (government) money? Especially because tax rates are different depending on where you live (and what business model are you running), so for 100k gross, someone will take home 45k, and someone else maybe 70k. The calculator looks very nice, I would've just appreciated more if you did the same thing only for net (after-tax) income.
Unfortunately the rule does not work in my country Indonesia. Reason : according to reports, average managers annual income in Indonesia : 20k USD. The cheapest brand new card you can get here is around 9k USD and that excludes interest rates, taxes, and insurance. This will give you an MPV which is 35% smaller in size versus Honda CRV with only one airbag and with very minimum safety system, less than basic suspension system, etc. The median price of a brand new car available in Indonesia is 19k USD excludes interest rates, taxes, and insurance. With that 19k USD you will get something similar to the legendary Honda Fit / Toyota Yaris with the lowest spec / variant. Would be very interesting to find a way to adopt this formula to developed countries.
Canada, but the formulas can be applied anywhere. Of course market costs/ incomes will differ throughout the world and some of the percentages may need to be adjusted. If owning a car is important for you you can use this tool to budget for the purchase.
Same. I couldn’t stomach the high interest rates inflating the price even higher when I was buying my car, so I bit the bullet and bought my hyundai venue outright. Best decision I’ve made, it saved my butt when I got laid off and didn’t have to worry about a car payment on top of everything else!
21 Camry in central Europe, where I live, is one of the most luxury and expensive cars on the streets... Maybe 10% of people could afford that without any leasing or debt. I might be wrong, but I feel like you mean that 21 Camry isn't that expensive car. So what are other Americans buying so they have that large car payments? Or maybe Camry is not that expensive in the US?
My cousin bought a 2023 tundra trd pro. The truck was 89k with a 10k markup. He puts down 40k. This is not even including the tax and interest on top of everything. His APR was 5.9 no matter how good your credit is, if your credit was bad then it can be a lot worst
I disagree. That form of happiness is temporary. In the beginning, everything is sunshine and roses. Once the warranty expires and the unexpected maintenance bills start coming in (especially for the higher end vehicles because you can’t cheap out on it), you will kick yourself. Trust me. Do your research and do what you can truly afford.
@@tatianabritton6258 Its your view, I respect, and as long as if you can persuit what makes up your view and opinions and get happiness from them, then it's worth, everyone is different, what you feel and experience can just be different to others, i.e. if you do not get happiness or anything like that from buying certain goods or services then that also make sense, universe is universe, anything can be happening, that's it, good luck
@@danielreardon6453 oh yes google "public auctions" most police departments/public agencys take real good care of the cars and quite often they auction them off when they get to be 5-6 years old or had a policy of pulling them from service when they get to a certin mileage and they still have alot of life left in the car. .....and by law they have to auction them off.....doing it this way saved me a ton of money.
recent buyer, thanks for the reminder that I made the worst decision in my life to date despite buying a fairly new but used car. LOL. will use this template to check what i can salvage in terms of budget.
I'm currently driving an old Honda (fully paid off) but my wife always bugs me about wanting a Foreign luxury SUV. She annoys the absolute heck out of me cos I already have Mortgage repayments which is a big enough loan as is! 'Certain' women have no idea where money comes from and think it grows on trees, or believes all the things/glamor they see on social media is normal is just flipping ridiculous! Had to get that off my chest, I feel better now. Thanks for listening
This was actually very helpful. While I personally would put a bit more per month into my car, just because I do love cars. It’s a great start off point for budgeting in a new vehicle. Thank you.
I’m amazed at how many people only think buying a car is only the car payment….. insurance and maintenance are big deals. Especially maintenance because you can ruin your car before your car is paid off just ignoring oil changes and more without other services. When you ignore maintenance during the warranty period you can void warranty repairs and leave you deeper in the hole.
My rule of thumb is only buy a car if I have more than enough to buy it outright and have a positive cash flow. if you satisfy these conditions, you can still choose to finance the car and use the cash for something else.
The sweet spot is definitely the late 2000s/early 2010s for cars honestly. Newer cars have annoying infotainment screens and extra safety nannies and are more bloated pieces of junk that sell your data through integrated modems. Any "safety feature" introduced after 2010 is a waste of money and primarily used as an excuse by the automakers to make cars more expensive, they don't actually improve safety (look at the vehicle fatalities, they haven't changed).
@@mikeydude750 Oh yeah, like I want a car from the early 2010's or even something from 2005. Newer cars are like too expensive and I Don't mind buying something under 6 g's as my first car.
70k today is 35K in 2011;2012. That time as well people with 35 K income could only afford most basic car. Rules are same numbers seem bigger due to inflation
@@satyanveshi1939 The only issue is that cars seem to be the only piece of tech that never gets cheaper. Regularly used cars break down reliably, so they need to be replaced. But I can never replace like with like at a much cheaper price. Phones, TVs, washing machines, everything gets cheaper. Only with cars the manufacturers feel the need to add more and more "features" to be able to inflate prices.
@@Volkbrecht Blame the safety nannies who keep demanding we throw thousands of dollars of sensors in new cars to make up for peoples refusal to learn how to drive in the first place.
@@satyanveshi1939$17/hr was much more obtainable in the early 2010s to get 35k a year for your basic car. $33-$34/hr is not really obtainable for the average person to get 70k for that same car.
Nice video and the financial advice does make sense. However there also other factors affecting a car purchase. For example what functional capabilities do we need from a car? Do we need for example a vehicle to drive 500 miles per week, carry cargo, carry adults, drive off road, implement the latest security and safety technologies, be compliant with low emission standards and many other requirements that can apply. There is already the car I can afford vs the car I want, but there can also be the car I need. Then again there is a risk factor with a vehicle. Whether they are new or used, cars have some risks because they are complex machines that are married to computers and electronics. Does the whole integrated platform work together well? That is why it may be better to lease/PCP the car. If you find out down the road that it has too many problems, you have far fewer strings attached.
I recently negotiated a 40k car down to 34k with a 0% interest rate. As with most things, it’s a game and knowing how to play it will save you thousands in the long run. Don’t just look at the sticker price and impulse buy. This is a sucker move and fair game for any dealer. Do your research first and learn the term “out the door.”
I had boughten a preowned car that was used in rentals at Avis car rental. It’s a 2020 Mitsubishi eclipse cross and had 36,000 miles on it. I gave a 10,000 deposit I had saved up for years as I was a full time college student and worked part time. The total including taxes and fees was 17,000 to be exact before things started to get more expensive after April 2021. My monthly payments have been 145 and insurance ranging between 150-170 a month. Happy to say that I should be done paying off my car by February 2024 as I’ve been putting a little bit more with my new job 🎉. I’ve always wanted a newer car or at least a Toyota but I needed to be strict with myself and go what was best within my budget without having to worry about being short on money.
Great video and breakdown as well. So in the end i guess the real question is, knowing all that she does, what Car does Gabrielle herself buy/lease/ finance and for how long with what down payment if applicable ? 😅
I think it is also important to know that there are various factors to consider beside that 35% rule. Let's say you already own a house (either in mortgage or paid off) and you earn enough (let's say 80k - 100k) and manage to spend monthly pays on all your necessary things in your life (rent, food, hanging out with friends) and manage to save at least 2k every month for 3 years (72k), you can buy a luxury car with huge down payment and spend only few hundred bucks on monthly payment for next 48 months. Make sure to save money to buy a house first!
JayZ said it best, if you can't buy it outright, you can't afford it. The fact that you QUALIFY for a LOAN doesn't mean you have to go on debt for a depreciated asset. Just buy a good, low miles vehicle that will take you safely from point A to point Z AND put the money that was supposed to go towards a loan to an index fund.
I was 100% on board with buying used however I don’t think it’s the end all be all. My brother bought a Honda Accord new because it was on clearance and was the last year model and being a student granted him financing options and additional discount. I on the other hand was hell bent on buying an electric car and bought a Tesla back when they depreciated very little. Now they depreciate a lot so if I bought now I would’ve gone used
The problem with buying used cars is while you don't eat the depreciation from new, you /do/ eat the possible poor treatment the previous owner did on the car. The manufacturer suggested maintenance these days is primarily meant to only get the car through the end of the warranty and to push down the "total cost of ownership" metrics in the short term - meaning longer oil change intervals and the like. 10k mile oil changes might get your car to 120k miles but by the end of that you'll be burning oil. The advantage of buying a car NEW and then holding onto it for the long term is that you can control how the car is broken in, you control the maintenance completely. Keep up religiously with maintaining the car and go with 5k mile oil changes, and your car will likely make it to 200k miles and 15 years. Holding on to a reliable car for 15 years you bought NEW means you'll ultimately be spending less money than buying used cars every 5-7 years.
Bought a well maintained 1997 Acura RL last June for $2000 but I already sometimes feel like upgrading. I make $90k but seeing this video, I’ll keep driving my 1997 RL lol.
Great video. I dont understand people who stretch theirselves on a 8 year loan for a car OMG. last week i ordered some food via uber eats ans the guy was bringing it in a Tesla 😅 whooooot
He was just showing you what you helped him pay for this month and he appreciates it, and in case his car caught on fire then he has a way for him to reheat your food.
Having a car is essential for a large majority of people to get to their jobs, no car, no job, lots of people live outside of cities due to house prices.
Bought my salvage title 2008 Lexus ES350 ultra luxury edition in 2015 for $8500, still running great in 2024 about to hit the 300k mark, the seats have some wear though and it doesn’t have Bluetooth. Hoping to get to 450k on it.
@@haleydavis8752 Just regular oil changes, one tune up and basic maintenance when I notice something. I don’t drive it hard either. I had to replace the alternator and wheel hub assembly once but that’s it.
I bought a barely used (newish) car that was only one year old for mostly cash early 2020. Paid it off within a year and I've had no loan payments on it since 2021. Using that money to invest or contribute to my nest egg
I have a 6000 dollor piece of crap that has major break issues onto of other issues but I think it's better too drive this around until I can afford or save up for a better car
What about tax, title, and other fees? Some states will even charge you with a high registration fee or a property tax. It would be nice to see those numbers factored in because all of that can get anyone by surprise. Some people end up putting that towards the principal because they never planned for those extra costs.
How much car can I afford? Without watching your video, the answer is none. I wouldn't take a car if it were given to me. Insurance, maintenance, licencing are expensive. I haven't owned a car in years. I'm retired and living on SSI. I learned years ago how budget busting owning a car can be. If that was true in the 1980s, how much more true is it today? No car for me. Thanks.
way too many people view cars as a status symbol. no one cares how expensive your car is. its a means of transportation. im not saying you should get a clunker, but just live below your means. I havent had a car payment in over 7 years and ill never get a auto loan again. last car i purchased was a great deal and i paid cash. never having to worry about a monthly payment is amazing
Car Poor ;) hehe and you're totally right ! I've driven from BMW Lexus to Mercedes Toyota to Honda in the last 25 years, and in the end, everything is the same, the more you play with the car it's definitely CAR POOR ;), I'd like this video of yours.
It’s hard to keep the rule when the market is crazy, I would say you example with the interest rate and the total expenditure is a bit unrealistic… the model with all the rules are kinda hard to work out not even to mention that you live in Vancouver…
In 2022 I’ve made around $33000. I have a car that I want to change because it’s becoming a money pit, but it is only 10 years old with 114k miles, constantly braking down and starting to rust. I personally want to get a Toyota Rav4 or a Mazda Cx-5. But their prices go sky high even for base models. They go approximately around $32000 without destination charge and other charges. Used ones go a little less, but still approximately the same price - around $29000. So what are you suggesting for me to do if not being car poor? The minimum wage is so low that you work for tears, while the government and other bureaucrats keeping the prices on products steep and gradually annihilating the purchasing power of a dollar. Gradually screwing you of every penny. Go to college or university and sit in tons of debt, get a house and sit in tons of debt, get a brand new car and sit in tons of debt, while getting the obligation to pay everything back with interest while “getting a job”. Does anyone notice how actually messed up this is? I have a permanent mental disability and cannot work full time because of doctors orders. So how am I supposed to afford a brand new car if I cannot push past $15000 a year? What sort of a joke is this? Make $70000 to get a $24000 car? So what can I get then? A pile of junk? In USA a car is a necessity to get you everywhere and cheaper way of travel, because you wont drive with uber or lift all the time - you will go bankrupt. I don’t count groceries, clothes, bills and mortgages you have to pay on a monthly basis. And the taxes are also structured in a way that, the more money you make, the more taxes you pay. I gotta tell you it’s amazing that the government keeps blowing money to multiple sides and to collect more money from people, they pass a bill with more taxes that everyone has to pay for. The current car I have is a pile of junk as I mentioned before, I replaced almost half of the car, because of constant breakdowns. And, of course, will be forced to put more and more money in it, simply because a new car is unaffordable. I could go on for a long time, but I have said enough. So in truth Ma’am these rules work only for the rich and wealthy and not for people like me. Sorry.
Get out of the system. Find something that actually pays more. You people still go down the road of “governments” rip us apart. Of course they are, it’s up to us to find something different and live our lives differently. If your annual salary is this, and you can’t or don’t want to find something that pays more is simple. Don’t buy a car.
When you are a car guy it can be a pain in the ass.. that's why i bought an MX5 after selling my Cayman Im still enjoying driving and for half the price of the Porsche and i have investing half of this money And im car debt free now. You can conciliate your hobby with your financial health This is always what you want vs what you needs If you're not a car guy then buy used Toyota or Mazda and keep it till the end
If you have to ask, then you can't afford one at all. Period. Never buy a consumable product that only depreciates, using borrowed money. Drive what you can buy with cash. If that is nothing, then its nothing and you take the peasant wagon to work - where you put in more effort, stay later, come in more days and generally put in the grind until you can afford a car financing free. Remember, modern car companies don't make anything on the actual sale of cars - they make their money being overpriced loan brokers. Cash is king and more importantly, keeps you humble.
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i worked as an accountant in a car dealership and I learned quickly to buy a used car like a Toyota and call it a day
As a finance manager at a car dealership, I would suggest the opposite. Toyota hold their value extremely well. Buying it used wouldn’t be wise as the savings wouldn’t be that great. I would buy an used GM or Chrysler product. They depreciate like a rock for the first 3-4 years, then they level off nicely. Often after 3-4 years when the warranty is over, the vehicle is only worth half its original cost. The vehicle will still be relatively new and trouble-free (in most cases). The previous owner would have absorbed a big portion of the depreciation.
Might be true, but then you will have to suffer in a GM or Chrysler @@mrslcom
There is no way I would recommend to someone to buy a GM or Chrysler over a Toyota. Sure, you'll obviously pay more for the Toyota but over the life of the car, you will save both money and sanity as your car won't be in the shop every other month.@@mrslcom
@@mrslcom Let me guess you have a nice big service department where she can bring in that crappy Chrysler product where she can get it serviced for a fee of course. Nope she's better off getting more trouble free reliable use from that Toyota or Honda, and like you said they hold their value very well when she decides to upgrade unlike the Chrysler in which she would get salvage value for it.
@@michaelb.8953Buy American cars used and buy Toyota new and hold onto it is the right strategy. I did exactly that. Bought a 3 year old Ford Taurus with 100K km ，drove another 200K km in 12 years. There were some repairs towards the end, but these repairs were a few hundred dollars. I did a final tally, the second hand American car costed me 1500 dollars per year, including the initial purchase and all the maintenance and repairs (oil tire replacement …).
It was actually extremely cheap. In fact I project my new Toyota can never match.😂. My Toyota bought new, would need to drive 20 years with zero maintenance and repairs to match 1500 dollars annual cost of the Ford Taurus. But clearly I also enjoy trouble free Toyota.
That said, Toyota is the past also. EV is reshuffling the landscape. What EV cars should we buy, is the most interesting question. My current strategy is holding on to the Toyota long enough (car inflation is horrendous now) to get the mature autonomous EV.😂
Former car guy here, I left because car culture became who could owe the bank the most. Everyone pretended like they had money...when in actuality, people were even financing car parts!! Sad state of affairs. Most will never admit it, but not everyone should or can afford even an 'average' car of $43k (crazy high compared to pre-pandemic).
Exactly. I said screw it and bought a motorcycle
At the end of the day it’s a hobby or a passion that you should know how much you can and want to spend on it.
@@NineDiamont well said
I have been bicycle commuting in Alabama since 2020 do not own a car save a lot of money
@@scruf153 I bet you do!! I used to be all into cars and off-roading, etc. being the cool guy, whatever. When I moved to the city my insurance tripled, literally. I said hell no. Got an ebike first. No insurance, no parking tax, no gas! Ended up getting a motorcycle for longer distance though
I did everything so wrong. SMH. I grew up in a very financially illiterate household. Even though everyone made good money, they spent it like they were dying tomorrow. SMH I’m taking it upon myself to develop better habits and stop this
Smart girl!
You can’t take it with you when you die.
@@CouchDoritos nobody will remember you anyway.
W awareness
@@carlosmcse The more you spend today, the less you have tomorrow. The difference between someone investing their money for 20+ years, and those spending every cent, can be millions of dollars. Discipline is sacrificing what you want today, for what you want tomorrow. Discipline creates a better future for us all.
One of the best financial decisions I made was deciding to leave car centric society. So much more freedom in places with good options for getting around.
I left the city for the same reason. Went to a coastal rural area, walking, biking, or using a small motorcycle is the norm and not big cars that causes traffic in these areas due to narrow road networks.
Now how much more are you spending on housing?
It isn't possible for me to go without a car because my company is in an industrial park with zero reasonable access to public transit, but if it were the walkable neighborhoods here easily cost $1k or more a month in rent for the same place than a cheaper place further out. Now car ownership does have costs but it's not 1k a month in additional costs.
That's beautiful bud @@cryptocontroller5585
@@mikeydude750I pay less than 500 USD per month because I live in South Korea. I'm an English teacher. I took a pay cut to be here but it still works out to more in savings than all told back home in Canada. You can do that man if you want. Not sure why you seem defensive about my talking about finding a preference to a lifestyle without a car.
Amsterdam?
The average cost of a car now (brand new) is over 45k while the average household income is around 67k. So basically the average person in the u.s cannot afford a new car
It’s closer to 50k. It’s like 48.somethin
Never spend more than 10k on a car
@@anikevin Are you saying you haven’t ever, or that people shouldn’t ever? If the latter that’s a ridiculous statement lol
@@ernestryles get what you can afford, but just keep in mind that a 10k car does the same thing than a 50k car, which is take you from point A to B
@@anikevin a 10k car isn’t going to last anywhere near as long on average as even a 25k car..
Nearly 90% of drivers on the roads today are "car poor".
I drive my mums car so I'm piggybacking on my mothers car poorness :D
Not in my area. Over half of the car I see are beater cars.
It's the Kardashian effect. "Influencers" on the internet sitting on Lambos, Ferrari's and every Joe thinks they need to drive an expensive car too. It's also why there's so much crime now because they can't afford that lifestyle, so they steal it and can count on not being punished for it.
@@bonwatchernewsflash. Crime has been declining for decades. The crimerate is just about half of what it was 30 years ago. It doesn't have anything to do with car prices influencers or "lifestyles"
@@russianbear0027 Theft crime has gone up, not down.
Good advice. Don't go alone to the dealership either. Bring a friend, family member, etc to be your second set of eyes and to help you go over the bill of sale, inspection of the car etc. With my base salary of $72k per year, I keep my used car purchases between $10k to $15k. So yeah, new car purchases are out of the question for me personally. I have priorities, like paying off my mortgage, savings and investing. I'm a DIY, so well maintained, proven to be reliable vehicles like Toyota and Lexus with 100k plus miles for me are not a problem. Subscribed
Couldn't agree more.
@@rainfallseattle I've been burned before, so that's how I know unfortunately 👍. If I can help justify one person have a better experience with buying a car, I'm happy 👍
Haven’t bought a new new car since 2005. I’ve been buying, repairing, upgrading used vehicles. The most motivating thing about buying a used car outright is the monthly payment. Zero. Because a use vehicle is a on going project, whatever you put into it gradually, it will NEVER exceed the amount of a monthly car payment and full coverage insurance. Unless the motor or transmission goes out. But this means you chose poorly to begin with. Buying and replacing a alternator, a starter, shocks, struts, power steering pump, radiator, etc…. This has been working for me really well. The average car payment in the US is $700 now. Insurance depends on the model you drive, your area, insurer, and driving history. Great vid. Good luck all.
I just think it’s absolutely insane that you need 70,000$ to afford a 24,000$ car
But it's a fact.
Depends on how much you want that car
That's responsibly. You need money to make money and it's hard to do when a lot of it is going into a car.
U re dumb lol. How u going to pay taxes rent n get food lol
if you make 70K you should only be buying a used car these days.
I had $600/month payments on my lexus IS. Since I paid it off, man I feel rich now. Saving so much money. I wouldn't do it again for this reason. I think the best thing to do is save up a few thousand for a down payment, and buy a used car on the shortest term possible where your monthly payments are at most 15% of your monthly next income
Good thing about that IS is that it will last forever (as long as it wasn't a turbo one)
@@artoriasoftheabyss1575 ya it seems like the is200t's had a lot of issues
I have a Lexus IS200t 2016. Dont have any mechanical issues at 80k and has been reliable so far.
@@bestthingsinceslicedricesame lmao. Also have a 2016 IS200t. Currently at 110,912 miles. Got it at 64k. Not a single issue
@@iLikeMeRicegenuinely have no idea where anyone got the idea that the 200t had any notable issues whatsoever lol
This is presented very well for a "car first" mindset.
I prefer to approach it from a "net worth" mindset. In my opinion, depreciating assets should be at the very bottom of the priority list and instead start with budgeting for critical items like food, shelter, clothing, saving, investing, and giving. A disciplined approach to well funded foundation allows clear headed budgeting for car+fees, entertainment, travel, etc.
You can also check out my budgeting video!
That is a better way to think of it. People think buying designer is a waste of money but if they aren't using the money, might as well. My $4k chanel bag is now $5k after a year. The $20k damage porsche cayman we got was fixed up for $3k and is now $30k.
@@Bodangers Agreed, investing comes in many forms. I'm sure you didn't put your last $24K into a bag and a car either :)
I have never owned a car and I think that was a very fortunate for me. The main downside was not the price tag, you can easily get a car suited to your budget, but the maintenance - insurance, petrol, tires and repairs.
I never needed a car to get to work, and in those few rare emergencies when you needed to get to hospital, I called Uber.
Car’s existence in my life never justified itself.
If I grew up on the country side or countries like US where the whole logistic is build around owning a car, would be different but here in Europe, I never had the need.
I can't imagine having to rely on Uber in an emergency situation 😂
I used to live in NYC for 15 years. I was the guy who thought I would not ever need a car. After I moved to a suburban area, I still survived without a car for more than a year (I used Uber). However, no matter where you live, once you have a baby, you should have it. So this one would be helpful when you plan to have a baby.
@@sjlim7804the main thing is don’t have babies. Problem solved 😊
Also, people don't understand how big the United States is. I drive 1 hour to work. In Europe in 1 hour you'd be in a different country.
@@m.687yeah especially if youre in Europe an ambulance call shouldnt bankrupt you like it does in the USA!
Given today's car prices, I would include the down payment in the 35% figure, personally. If you don't have the resource of a lot of cash upfront, you still have the resource of time to save a higher down payment. If you don't have either, that's when you get creative with finding a less expensive used car for now, then start setting aside the savings to replace it.
Personally. Just buy the car that you can buy with money at hand without taking out a loan. Be modest in spending.
Thank you for this tutorial. It is an absolutely essential tool to help keep your finances in check.
You're welcome!
U can always play with the dealership. Young black guy with barely any fashion sense. Walked in to buy a new car n said I don’t wanna pay anything more than $250 a month. The way they looked at me when I said that was hilarious. They “crunched” the numbers n “lowered” the price of the car to “listing price.” Then I wrote a check for half of it n payed off the rest in a lil more than a year
Plz give some more details like: which make, model, trim, year. What was the quoted price and your out of door price
Thanks for the infomation, very helpful! By the way, I also want to mention, the 20-4-10 rule(not in the template) is much more concervative and nearly always govern your affordable car price.
people used to be house poor, now they are even car poor lmao
but we'll always be video games rich
(btw, mom… I got a new Fortnite skin! yay!)
Wow everyone just poor
Try buying a car in Singapore. A permit to get a car costs up to $100k. And that doesn’t include the car and taxes yet.
sg is super small and crowded, most of the time u dont need a car to get by@@XwytreX
@@XwytreX good singapore is doing it right. Car's should be a luxury and not a mandatory way to commute.
I would recommend having the cash too and paying the car off when you buy. These interest rates are so high now.
Thanks this information was very helpful im in my 54 and i have never bought a brand new car only used Honda accord and i drive them until they die usually around 500k kilometers i own my house and im debt free and im currently driving a 2015 honda touring life is good😂
I want a Lexus es 350h so bad, but I just have to keep telling myself the next years model will only be more worth it I just have to keep saving and it will be more realistic
buy used in cash with money you already have. any further incoming paychecks are then only responsible for maintenance and usage, not for payments towards ownership.
and if you don't have enough, wait or get a cheaper used car.
Don’t complicate things, it just should be more than 15-20 percent of your annual income after taxes. That includes insurance, payment, maintenance costs.
Why do people use gross income for these types of calculations? I mean why do we take into account someone else's (government) money? Especially because tax rates are different depending on where you live (and what business model are you running), so for 100k gross, someone will take home 45k, and someone else maybe 70k.
The calculator looks very nice, I would've just appreciated more if you did the same thing only for net (after-tax) income.
Unfortunately the rule does not work in my country Indonesia. Reason : according to reports, average managers annual income in Indonesia : 20k USD. The cheapest brand new card you can get here is around 9k USD and that excludes interest rates, taxes, and insurance. This will give you an MPV which is 35% smaller in size versus Honda CRV with only one airbag and with very minimum safety system, less than basic suspension system, etc. The median price of a brand new car available in Indonesia is 19k USD excludes interest rates, taxes, and insurance. With that 19k USD you will get something similar to the legendary Honda Fit / Toyota Yaris with the lowest spec / variant. Would be very interesting to find a way to adopt this formula to developed countries.
I think this rule is for US residents.
@@sjlim7804this "rule" is outdated for 30 years
Canada, but the formulas can be applied anywhere. Of course market costs/ incomes will differ throughout the world and some of the percentages may need to be adjusted. If owning a car is important for you you can use this tool to budget for the purchase.
I wanted an Audi Q3 or A6
But thanks to you I will use my money responsibly
I’m glad I don’t have a car payment, I’ll keep on driving my 21 Camry hybrid for a long time to come.
Same. I couldn’t stomach the high interest rates inflating the price even higher when I was buying my car, so I bit the bullet and bought my hyundai venue outright. Best decision I’ve made, it saved my butt when I got laid off and didn’t have to worry about a car payment on top of everything else!
21 Camry in central Europe, where I live, is one of the most luxury and expensive cars on the streets... Maybe 10% of people could afford that without any leasing or debt.
I might be wrong, but I feel like you mean that 21 Camry isn't that expensive car. So what are other Americans buying so they have that large car payments? Or maybe Camry is not that expensive in the US?
My cousin bought a 2023 tundra trd pro. The truck was 89k with a 10k markup. He puts down 40k. This is not even including the tax and interest on top of everything. His APR was 5.9 no matter how good your credit is, if your credit was bad then it can be a lot worst
That’s rough omg
As long as it buys you happiness, it's worth the money.
Periodt kween
100% agree
I disagree. That form of happiness is temporary. In the beginning, everything is sunshine and roses. Once the warranty expires and the unexpected maintenance bills start coming in (especially for the higher end vehicles because you can’t cheap out on it), you will kick yourself. Trust me. Do your research and do what you can truly afford.
@@tatianabritton6258 Its your view, I respect, and as long as if you can persuit what makes up your view and opinions and get happiness from them, then it's worth, everyone is different, what you feel and experience can just be different to others, i.e. if you do not get happiness or anything like that from buying certain goods or services then that also make sense, universe is universe, anything can be happening, that's it, good luck
for the last 25 years ive got my cars from the local public police auction. and ive never paid over 2k for a good running crown victoria
WOW is that really true? they do that?
@@danielreardon6453 oh yes google "public auctions" most police departments/public agencys take real good care of the cars and quite often they auction them off when they get to be 5-6 years old or had a policy of pulling them from service when they get to a certin mileage and they still have alot of life left in the car. .....and by law they have to auction them off.....doing it this way saved me a ton of money.
Those things eat gas. Get a toyota or honda instead
@@Duran762 not as bad as you think.
Those cars are absolutely abused since day one.
Thank you so much! Thanks to you I have given up on upgrading my old Audi.
Guess I’ll look into Honda
recent buyer, thanks for the reminder that I made the worst decision in my life to date despite buying a fairly new but used car. LOL. will use this template to check what i can salvage in terms of budget.
Thank god I clicked on this video. My wants for a car were on a high. Thanks to this I got a good reality check. I'll invest instead.
I'm currently driving an old Honda (fully paid off) but my wife always bugs me about wanting a Foreign luxury SUV. She annoys the absolute heck out of me cos I already have Mortgage repayments which is a big enough loan as is!
'Certain' women have no idea where money comes from and think it grows on trees, or believes all the things/glamor they see on social media is normal is just flipping ridiculous!
Had to get that off my chest, I feel better now. Thanks for listening
This was actually very helpful. While I personally would put a bit more per month into my car, just because I do love cars. It’s a great start off point for budgeting in a new vehicle. Thank you.
In Singapore, new bread and butter car like Toyota Altis cost $120k USD and only you can only drive it for 10 years.
That’s 500% more expensive than my country and my country is right next to you 😅
Today, I am learning a new rule (20-4-10 rule)😊. Thanks for sharing 😊
I’m amazed at how many people only think buying a car is only the car payment….. insurance and maintenance are big deals. Especially maintenance because you can ruin your car before your car is paid off just ignoring oil changes and more without other services. When you ignore maintenance during the warranty period you can void warranty repairs and leave you deeper in the hole.
My rule of thumb is only buy a car if I have more than enough to buy it outright and have a positive cash flow. if you satisfy these conditions, you can still choose to finance the car and use the cash for something else.
I have a bumper sticker on my 10 yo Accord saying; "Don't laugh, it's fully paid! and I am happy with it..
I could buy a new car paid full. But my 2007 honda is still running fine.
The sweet spot is definitely the late 2000s/early 2010s for cars honestly. Newer cars have annoying infotainment screens and extra safety nannies and are more bloated pieces of junk that sell your data through integrated modems. Any "safety feature" introduced after 2010 is a waste of money and primarily used as an excuse by the automakers to make cars more expensive, they don't actually improve safety (look at the vehicle fatalities, they haven't changed).
Undoubtedly, your Honda will continue to run for many years to come
Good for you bud. Unfortunately nobody cares
@@mikeydude750 Oh yeah, like I want a car from the early 2010's or even something from 2005. Newer cars are like too expensive and I Don't mind buying something under 6 g's as my first car.
@@towIiestop being rude dude, guy did nothing wrong. Sounds like you’re projecting some envy
There are no more new cards under the 20range in 2024 now... crazy to think that someone making a $70k salary can afford the most basic vehicle.
70k today is 35K in 2011;2012. That time as well people with 35 K income could only afford most basic car. Rules are same numbers seem bigger due to inflation
@@satyanveshi1939 The only issue is that cars seem to be the only piece of tech that never gets cheaper. Regularly used cars break down reliably, so they need to be replaced. But I can never replace like with like at a much cheaper price. Phones, TVs, washing machines, everything gets cheaper. Only with cars the manufacturers feel the need to add more and more "features" to be able to inflate prices.
@@Volkbrecht Blame the safety nannies who keep demanding we throw thousands of dollars of sensors in new cars to make up for peoples refusal to learn how to drive in the first place.
@@satyanveshi1939$17/hr was much more obtainable in the early 2010s to get 35k a year for your basic car. $33-$34/hr is not really obtainable for the average person to get 70k for that same car.
Correct, used cars are STARTING at 30k. If it is under that amount, it's got alot of miles and maybe some damage on its report.
Nice video and the financial advice does make sense.
However there also other factors affecting a car purchase. For example what functional capabilities do we need from a car? Do we need for example a vehicle to drive 500 miles per week, carry cargo, carry adults, drive off road, implement the latest security and safety technologies, be compliant with low emission standards and many other requirements that can apply.
There is already the car I can afford vs the car I want, but there can also be the car I need.
Then again there is a risk factor with a vehicle. Whether they are new or used, cars have some risks because they are complex machines that are married to computers and electronics. Does the whole integrated platform work together well?
That is why it may be better to lease/PCP the car. If you find out down the road that it has too many problems, you have far fewer strings attached.
I was blown away when i realized that there are so many people that dont own the cars they drive. Ridiculous, just buy a car you can afford lmao.
I recently negotiated a 40k car down to 34k with a 0% interest rate. As with most things, it’s a game and knowing how to play it will save you thousands in the long run. Don’t just look at the sticker price and impulse buy. This is a sucker move and fair game for any dealer. Do your research first and learn the term “out the door.”
How did you do that? I’m trying to get a car I want down by 3k
Do you earn over 100k? Based on her 35% rule, you need to earn over 100k per year to own that car 😂😂
I had boughten a preowned car that was used in rentals at Avis car rental.
It’s a 2020 Mitsubishi eclipse cross and had 36,000 miles on it.
I gave a 10,000 deposit I had saved up for years as I was a full time college student and worked part time. The total including taxes and fees was 17,000 to be exact before things started to get more expensive after April 2021. My monthly payments have been 145 and insurance ranging between 150-170 a month. Happy to say that I should be done paying off my car by February 2024 as I’ve been putting a little bit more with my new job 🎉. I’ve always wanted a newer car or at least a Toyota but I needed to be strict with myself and go what was best within my budget without having to worry about being short on money.
Wow this is awesome. Love the breakdown. You saved me from making a large purchase above what I can afford based on my income.
Car is just a means of transportation!
Great templates - net worth tracker and car calculator - thank you. Is purchasing real estate the next template you'll be creating?
whats the usually lead time when it comes to inquiries through email submission on your website? @@GabrielleTalksMoney
In this method to buy a entry level car around $37k in canada. u need to earn $105k annualy and have $50/h wage assuming we work 40hrs/week
then there's something wrong with canada, too much american culture.
Most people don’t even earn 100k annually 😂
This is rich thank you, its been a month since I bought my used car a little too late but glad found your channel. Subscribed.
Great video and breakdown as well.
So in the end i guess the real question is, knowing all that she does, what Car does Gabrielle herself buy/lease/ finance and for how long with what down payment if applicable ? 😅
lol i have a video coming out abt this soon!
Pay cash, self insure and buy minimum legally required liability insurance only. No car/interest payment ever.
The highest status car model, is a paid off one.
I think it is also important to know that there are various factors to consider beside that 35% rule. Let's say you already own a house (either in mortgage or paid off) and you earn enough (let's say 80k - 100k) and manage to spend monthly pays on all your necessary things in your life (rent, food, hanging out with friends) and manage to save at least 2k every month for 3 years (72k), you can buy a luxury car with huge down payment and spend only few hundred bucks on monthly payment for next 48 months. Make sure to save money to buy a house first!
I can see why so many are car poor. Where I’m from, the 10/20 rule would leave a lot of people without a car altogether. Great info provided though.
JayZ said it best, if you can't buy it outright, you can't afford it. The fact that you QUALIFY for a LOAN doesn't mean you have to go on debt for a depreciated asset. Just buy a good, low miles vehicle that will take you safely from point A to point Z AND put the money that was supposed to go towards a loan to an index fund.
I'm so glad my cars are all paid off.
You're a gem. I will use this to help me purchase my car.
Using a 17years old car, so far so good.
I drive 04 acura with 260k miles.
Life is much easier when you dont have car payments
highly informative video, thanks!
I do find the the 10 USD for the sheets calculator a bit expensive.
its actually 10 Cad! What do you think is a reasonable price?
I was 100% on board with buying used however I don’t think it’s the end all be all. My brother bought a Honda Accord new because it was on clearance and was the last year model and being a student granted him financing options and additional discount. I on the other hand was hell bent on buying an electric car and bought a Tesla back when they depreciated very little. Now they depreciate a lot so if I bought now I would’ve gone used
The problem with buying used cars is while you don't eat the depreciation from new, you /do/ eat the possible poor treatment the previous owner did on the car. The manufacturer suggested maintenance these days is primarily meant to only get the car through the end of the warranty and to push down the "total cost of ownership" metrics in the short term - meaning longer oil change intervals and the like. 10k mile oil changes might get your car to 120k miles but by the end of that you'll be burning oil. The advantage of buying a car NEW and then holding onto it for the long term is that you can control how the car is broken in, you control the maintenance completely. Keep up religiously with maintaining the car and go with 5k mile oil changes, and your car will likely make it to 200k miles and 15 years. Holding on to a reliable car for 15 years you bought NEW means you'll ultimately be spending less money than buying used cars every 5-7 years.
Bought a well maintained 1997 Acura RL last June for $2000 but I already sometimes feel like upgrading. I make $90k but seeing this video, I’ll keep driving my 1997 RL lol.
Most people wouldnt even be able to buy a new civic with those rules 😔
Good video. Maybe the interest rate taken as Input is conservative. Maybe 7-8 % is a a good input.
Probably should update this for 2024! This isn't 2000-2010!
Great video. I dont understand people who stretch theirselves on a 8 year loan for a car OMG. last week i ordered some food via uber eats ans the guy was bringing it in a Tesla 😅 whooooot
He was just showing you what you helped him pay for this month and he appreciates it, and in case his car caught on fire then he has a way for him to reheat your food.
You can do Uber car rental if he’s doesn’t own it he’s probably renting it
@@curiosityredpill7030 you mean Autzu?
Having a car is essential for a large majority of people to get to their jobs, no car, no job, lots of people live outside of cities due to house prices.
If you are going to buy a car, pay cash for it.. full payment. No loans.
Does this apply to motorcycles too? And, who came up with these rules and what are they based on?
Bought my salvage title 2008 Lexus ES350 ultra luxury edition in 2015 for $8500, still running great in 2024 about to hit the 300k mark, the seats have some wear though and it doesn’t have Bluetooth. Hoping to get to 450k on it.
What’s your car maintenance routine !
@@haleydavis8752 Just regular oil changes, one tune up and basic maintenance when I notice something. I don’t drive it hard either. I had to replace the alternator and wheel hub assembly once but that’s it.
I make more than 70k and a $24,000 car seems incredibly irresponsible to sign up for.
I bought a barely used (newish) car that was only one year old for mostly cash early 2020. Paid it off within a year and I've had no loan payments on it since 2021. Using that money to invest or contribute to my nest egg
Thanks for creating this channel. What an incredible resource of information.
Based on your calculations, 90% of people are car poor 😂😂
This is how the US econ works. We need poor educated people
Thats why we need more videos/education on this matter
Yes most ppl are
I don’t doubt it. Most people are not smart.
Get a used lexus, they depreciate a lot (good to buy used) but are super reliable
Bought a brand new 2022 WRX last year, no wait list, 1k under MSRP (29k), and 2.9% APR.
I have a 6000 dollor piece of crap that has major break issues onto of other issues but I think it's better too drive this around until I can afford or save up for a better car
What about tax, title, and other fees? Some states will even charge you with a high registration fee or a property tax. It would be nice to see those numbers factored in because all of that can get anyone by surprise. Some people end up putting that towards the principal because they never planned for those extra costs.
How much car can I afford? Without watching your video, the answer is none. I wouldn't take a car if it were given to me. Insurance, maintenance, licencing are expensive. I haven't owned a car in years. I'm retired and living on SSI. I learned years ago how budget busting owning a car can be. If that was true in the 1980s, how much more true is it today? No car for me. Thanks.
Great video
I am also studying accounting. Which companies do you recommend for internship
Gabrielle, found your channel and it is really educational. Subscrided. Thanks for the great advice.
So using the 35% rule, would you consider the car price after a down payment or should it be the car's base price?
Hi Gabrielle. Are the affordable costs also tax included? I mean 24500$ tax included?
way too many people view cars as a status symbol. no one cares how expensive your car is. its a means of transportation. im not saying you should get a clunker, but just live below your means. I havent had a car payment in over 7 years and ill never get a auto loan again. last car i purchased was a great deal and i paid cash. never having to worry about a monthly payment is amazing
Financing for a depreciating product is the stupidest financial mistake one could make, buy a working car outright with cash, period!
The world & society teach us "you are what you drive", it is inconvenient truth though.
Car Poor ;) hehe and you're totally right ! I've driven from BMW Lexus to Mercedes Toyota to Honda in the last 25 years, and in the end, everything is the same, the more you play with the car it's definitely CAR POOR ;), I'd like this video of yours.
I needed this so much. Thank you.
It’s hard to keep the rule when the market is crazy, I would say you example with the interest rate and the total expenditure is a bit unrealistic… the model with all the rules are kinda hard to work out not even to mention that you live in Vancouver…
I just wanted to say thank you. You the best
Great advice! Thanks for making me more financially literate!
Algorithm: More people need to see this!
If you are a single income household with two cars would you divide the amount of car you can afford in half for two cars? Or is it more complicated?
In 2022 I’ve made around $33000. I have a car that I want to change because it’s becoming a money pit, but it is only 10 years old with 114k miles, constantly braking down and starting to rust. I personally want to get a Toyota Rav4 or a Mazda Cx-5. But their prices go sky high even for base models. They go approximately around $32000 without destination charge and other charges. Used ones go a little less, but still approximately the same price - around $29000. So what are you suggesting for me to do if not being car poor? The minimum wage is so low that you work for tears, while the government and other bureaucrats keeping the prices on products steep and gradually annihilating the purchasing power of a dollar. Gradually screwing you of every penny. Go to college or university and sit in tons of debt, get a house and sit in tons of debt, get a brand new car and sit in tons of debt, while getting the obligation to pay everything back with interest while “getting a job”. Does anyone notice how actually messed up this is? I have a permanent mental disability and cannot work full time because of doctors orders. So how am I supposed to afford a brand new car if I cannot push past $15000 a year? What sort of a joke is this? Make $70000 to get a $24000 car? So what can I get then? A pile of junk? In USA a car is a necessity to get you everywhere and cheaper way of travel, because you wont drive with uber or lift all the time - you will go bankrupt. I don’t count groceries, clothes, bills and mortgages you have to pay on a monthly basis. And the taxes are also structured in a way that, the more money you make, the more taxes you pay. I gotta tell you it’s amazing that the government keeps blowing money to multiple sides and to collect more money from people, they pass a bill with more taxes that everyone has to pay for. The current car I have is a pile of junk as I mentioned before, I replaced almost half of the car, because of constant breakdowns. And, of course, will be forced to put more and more money in it, simply because a new car is unaffordable. I could go on for a long time, but I have said enough. So in truth Ma’am these rules work only for the rich and wealthy and not for people like me. Sorry.
Get out of the system. Find something that actually pays more. You people still go down the road of “governments” rip us apart. Of course they are, it’s up to us to find something different and live our lives differently. If your annual salary is this, and you can’t or don’t want to find something that pays more is simple. Don’t buy a car.
When you are a car guy it can be a pain in the ass.. that's why i bought an MX5 after selling my Cayman
Im still enjoying driving and for half the price of the Porsche and i have investing half of this money
And im car debt free now. You can conciliate your hobby with your financial health
This is always what you want vs what you needs
If you're not a car guy then buy used Toyota or Mazda and keep it till the end
I've never bought a car unless I could afford to buy it with no financing. I've heard that financing is how major car dealers make their profit.
If you have to ask, then you can't afford one at all. Period.
Never buy a consumable product that only depreciates, using borrowed money. Drive what you can buy with cash. If that is nothing, then its nothing and you take the peasant wagon to work - where you put in more effort, stay later, come in more days and generally put in the grind until you can afford a car financing free. Remember, modern car companies don't make anything on the actual sale of cars - they make their money being overpriced loan brokers. Cash is king and more importantly, keeps you humble.
Toyota Corollas started looking real sexy in 2024