How Much Car Can You Really Afford? (By Salary)

Signup to my Free 🐪 Hump Days Newsletter ➭ humpdays.substack.com
How Much Car Can You Afford?
In this video we go over the car buying rules that can help you understand how much car you can afford.
Edmunds True Cost To Own Calculator: www.edmunds.com/tco.html
Calculate + Negotiate a Car Lease Payment Video: • How to Negotiate The L...
FREE STOCKS:
🏆 WeBull (Get 6-12 Free Stocks worth up to $30,600 when you deposit $100) ➭ a.webull.com/i/HumphreyYang
💸 SoFi Checking & Savings: Get up to 4.20% APY, pay no account fees and earn $250
when you sign up and set up direct deposit. Terms apply ➭ sofi.com/humphrey
🎓 Public ($10 Free Stock) Investing App ➭ pblc.co/humphrey
RESOURCES:
▶️ Join the Patreon Community ➭ / humphreytalks
🐪 Hump Days Newsletter ➭ humpdays.substack.com
💳 My Favorite Credit Cards ➭ cardonomics.com/i/humphrey
FREE GUIDES/TEMPLATES:
🏠 Investing 101 PDF: beacons.ai/humphreytalks/free...
🏖 The Financial Mastersheet: beacons.ai/humphreytalks/free...
🚗 Car Lease Payment Calculator: beacons.ai/humphreytalks/free...
💵 Net Worth Tracker: beacons.ai/humphreytalks/free...
PERSONAL LINKS:
🎥 My KZbin Setup ➭ kit.co/humphreytalks
🌍 Rickie (Editor) ➭ / coldgamerick
🗞 Twitter ➭ / humphreytalks
📸 Instagram ➭ / humphreytalks
🚀 Tik Tok ➭ / humphreytalks
Timestamps:
0:00 - Intro
0:30 - Current State of Industry
1:15 - Rule 1: The 35% Rule
2:07 - More Conservative "25%" Rule
3:02 - The 20/4/10 Rule
4:34 - The "4" Years
6:13 - The 10% Rule
7:52 - Buy or Lease?
9:35 - Opportunity Cost
10:15 - Car Saving Tip 1
10:47 - Car Saving Tip 2
11:00 - Car Saving Tip 3
11:36 - Lifestyle Creep
📧 GET IN TOUCH: I'd love to hear from you! If you have a longer question, or if you have a business related inquiry, please then send me an email at [e-mail]. I try my best to reply to all e-mail but sometimes I do not have enough time to respond to everyone.
PS: I am not a Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel

[@humphrey]

We're just about at 1M! Thanks for all the support and love 🙏 Make sure to checkout the Free 🐪 Hump Days Newsletter ➭ humpdays.substack.com

[@Car_Fanatic]

Love you this video helped my dad alot he's getting a new car soon

[@johnfijnvandraat]

Based on the 20 4 10 rule I can't afford a car even of I paid cash because all of my quotes were 20% of my income for insurance due to medical risk (clean driving record)

[@jordanloftin9915]

Congrats on the 1 mill!! 🎉

[@Ultrajamz]

Why not finance to 7 years but pay it off in 4? Gives you room if an emergency happens.

[@rollakid]

I live in Malaysia. A Honda Civic starts at 29k USD, and earning 30k annual household income put you in the top 20 percentile of earners. It's normal for people to spend up to 1-2 year gross income or more for a car, taking out a 9 year loan. I almost did that 12 years ago, but I got smart(er) and bought something closer to 1 year income, and paid it off in 3 years. It was a tough 3 year, and I still have that car as a spare car.

[@RbFerrer2011]

Having no car payment is one of the best feeling ever. I make over 100k a year, but still drive a 2014 Honda Civic. As long it gets me from point A to point B then I'm good.

[@humphrey]

thats awesome.

[@mr.boostang2064]

Same, I drive a 2016 Corolla

[@Goggarin1991]

Same here bro. I make 60 K a year, and have been driving my 2008 Honda Accord for 8 years now, even thoug i'm going to replace it soon.

[@XxXK9]

That’s incredible considering people at make 30 drive benzes

[@mr.boostang2064]

@Xx XK9 live below your means, do that long enough, and eventually, the Benz will be considered a small purchase.

[@liamm-c1287]

I love talking to suburban moms about their car choices. They say all they want is something that gets them from A to B. And then they get a 7 seat land yacht for the cost of a house.

[@bosshoss6640]

I mean. It shouldn't cost that much. Even used with 100k miles being 30k it's crazy. I guess I need what they are smoking.

[@mgloriousone9823]

Oh, it's the same with new drivers. I took my buddy and his 16yr old to look at a car for her (he knows nothing about them so I was brought in as their "expert" ). He wanted something for her that was reliable and had cheap insurance, then asked if a 2018 nissan altima was "okay".

[@sheilymejia8375]

@@mgloriousone9823 ​​⁠ lol a novice here, but is a Nissan Altima 2018 not good as a cheaper option? I really don’t know

[@wingnutmcspazatron3957]

Women always feel the need to save face before letting their true desires out.

[@dnegel9546]

Its always the parents with 1 kid that feel they need a 7 seater suv or van. As someone with 2 kids And 3 nieces i have managed with a sedan just fine specially once they got older.

[@zankiohex]

This makes sense if you only use a car as a means of getting from A to B and don't consider cars your hobby or something you're enthusiastic about. Because if you do then a large part of your "fun" money will also go towards your car(s), whereas other people would put the same money into going out clubbing, having frequent vacations, playing golf, drinking at the bar every other night, etc.

[@Tracklyfe_T]

Very well said !! .

[@KseRBanshee]

Yes, some people treat car as something that move them from A to B. To us car enthusiasts, car is a hobby lol

[@cloudoftime]

That's why he said, early on in the video, that the higher percentages are going to be for enthusiasts.

[@Henry_Aguirre214]

@@cloudoftime35% is “agressive” he said… for car enthusiasts? I don’t think so. I’d say 50% is more realistic.

[@cloudoftime]

@@Henry_Aguirre214 Great. You can disagree with the percentages he gave if you like. That was not the point of my reply.

[@joseluismartinez2973]

The range in 20% to 35% in vehicle expense was very useful. Sometimes, a household lives on a single salary, and two vehicles are needed, having a min and max benchmark really helped

[@YogiTheBearMan]

This is my situation. Guess we’ll replace one car and then the other once it’s paid off. Hopefully car 2 holds up during that time!

[@janek13ko]

Does it apply to the full price of a vehicle or a yearly leasing cost?

[@DomoKang]

So basically if you work your way up to a $50,000 salary (which can take 5-10 years) you finally have enough to finance a 2015 Prius with 100k miles. What a time to be alive.

[@Superb_Legend]

If you not starting a job making 40k something wrong

[@antimatt_r]

I just got my first 30k a year job at 32. This video makes me wanna off myself

[@jonathanbelmares8241]

What do you do for work?

[@johnjones393]

5 to 10 years? If you're not starting at over $40k then you're doing it wrong. I know a guy who just started a job running a forklift. He's starting at $50k with no experience.

[@chancemcclendon3906]

@@Superb_Legend you would be supprised how little people are paid even for education required jobs

[@bigali2783]

As a 19yo college student finding a car that’s 10% of my salary is basically impossible. Inflation and car markets are so fun!

[@RGE_Music]

buy private!

[@marcelslofstra2157]

Buy a bike. Take the bus.

[@BrettEllingson]

Don’t have a car in college. Live on campus or close to campus. Take bus and bike

[@yourenzyme]

@@RGE_Music private market is just as inflated. people selling their cars sees what dealerships are selling for and prices them similarly. A used car that you could have gotten for $5k a couple years ago is now going for $10k+

[@existentialrap521]

@@RGE_Music That works when you have rich family and friends. If you grew up poor, your surroundings are poor, so they're also scavenging cheap, reliable cars.

[@UtotheJ]

I bought my 2007 Honda Accord 2-door coupe in 2013 with cash (my biggest purchase during my my first job out of college). The previous owner took great care of it and I absolutely (and still) love the car! It’s helped us through some really difficult times, but also shared with us the most amazing memories! Our two toddlers don’t ride it much anymore because the lack of backseat space. I make 300k+ now, and yes the thought of buying a 100k+ “luxury” vehicle crossed my mind multiple times, but my wife and I would drive our beautifully kept red Accord for as long as it allows us!

[@MrSnrSquishy]

The 07 Accords are a beautiful car, I love modified cars and have always though the Accord was one of the best looking cheap cars out there.

[@daveclark8337]

That is probably one of the most reliable and easy/cheap to maintain cars ever built. There's a guy who hit 1 million miles in one with the original motor recently.

[@dwightschrute4560]

​@@daveclark8337one million?? 😂

[@ljpr360]

Accords last. Getting a newer used Accord sedan wouldn't be a bad purchase. The 11th generation isn't as Nice as the 10th Generation in my opinion.

[@americanboy1332]

So where do now your toddlers ride? 😂

[@dcjohnson2490]

Paid my car off this month! So happy, hoping to keep for as long as I can with little to no trouble!

[@rustybros]

Never thought I would see the day when having an 80k salary can only get you a Corolla. 🤣

[@Hoopers_s]

More like a smart car

[@mikezerker6925]

IKR!!

[@Templar0311]

Right? As I was watching this, all I could think was "damn if everyone followed this 90% of us would be driving beaters" lol

[@Templar0311]

Vehicles have always been my hobby, and naturally I like the cool ones. As such I save up and put huge down-payments on them so I can have something nice, but still be in a good spot financially.

[@gerrya2133]

A corolla in 1980 cost like 5k to 7k if I googled that right. Today they're like 30k. Wages have not quadrupled to 6x'd to match. Yes, 90% of people probably *should* be driving beaters.

[@mayssm]

Wages just haven't kept up with car prices. $1000 car payment is insane. That's close to a mortgage or rent for something that's going to depreciate 50% over the next 5-10 years. Even the used car market is ridiculous.

[@FefyGT]

Stop buying family cars that cost more than a sport car if you want the price to drop.

[@LiquaFoo]

Have you priced a mortgage or rent recently? It’s almost 3k or more. Between rent and a car they are close to 4k a month

[@ickster23]

It's almost like closing down the economy for 2 years, printing tons of money, and implementing net zero policies are driving prices way up.

[@mayssm]

@@ickster23 Also massive tariffs and bad trade deals.

[@spacetoast7783]

Unless you're talking about the last three years, this is a lie. Middle class wages have outpaced inflation for about 75 years, and car prices have lagged inflation.

[@rover-t]

Thanks for a great video. Totally agree on buying a used car. Buying a 3-5 year old vehicle is the best value for your dollar. Im not a fan of financing, but I if I did, I would put down a larger deposit to really minimise the depreciation / resale loss at the time of changing. Some companies like Hyundai give longer warranties so owners can be protected on older cars for longer.

[@Angelcee492]

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.

[@austintomkewitz3981]

Except it's not an opinion

[@Shay416]

At least you did it. Too many ppl keep suffering in their stupidity

[@Cortezuma]

Some new cars are better choices than used cars. In particular, some models of Toyota. I bought a new 4Runner and drove it for 2 years then sold it for $2k less than I bought it for. So less than $85/month basically, and every single piece of that car was covered under a full warranty the entire time I drove it. Most cars don’t hold their value like that, but if you’re smart you can make out on a new car.

[@averya.8622]

Used car market is so messed up, that there are some brand new car options that make sense. You’re getting maximum warranty benefit and that can go a long way.

[@elmohead]

I bought a BYD for 40k. Now it's worth 50k since they bumped up the price.

[@PlywoodFraternity]

I do think it’s very funny that for the past 70 years we’ve prioritized infrastructure that makes not owning a car extremely inconvenient and then halfway through that infrastructure boom we ended up with an economic ecosystem where a significant and growing portion of the population can’t even afford to purchase a car without going into debt on a depreciating liability

[@franko8572]

All by design, G. Step one, get them in a position where they need cars, step two, raise prices on cars. What are you going to do, not have a car? See step 1.

[@gaiusjuliuscaesar9296]

That's what happens when corporations control the government

[@droe2570]

You can thank your politicians.

[@mikerotchburns42069]

And then went into a global lockdown where car manufacturers stopped, driving up the price of used cars to be even more unaffordable

[@Bluntobject]

All the government wants is worker bees. Put you in debt so you can never stop working. You will soon not own anything and your whole existence is cloud based payments, forever.

[@brunoalves3736]

Problem is that used car now a days are going for almost as much as the new ones, it looks like a terrible deal even if it is 2-3K cheaper.

[@Chitario]

My new car (leased) costs about 27k new. Got it for 18.7k Payed 8k upfront, will pay 130 each month for 4 years. Can buy it afterwards for another 7k. Which adds up to about 22k. Car is almost brand new also

[@kidamere2408]

@@Chitario not sure i see the logic your paying the same price either way you lease or buy

[@dudeman3186]

I’m trying to buy a truck and anything under 15 years old with less than 150k miles is around 12-20 grand. By this videos logic there isn’t a single running 4x4 truck I could afford as a college student

[@MaSa-bp5qe]

@@kidamere2408the logic is if you don’t like it or it breaks down before the lease ends you can return that crap.

[@americanboy1332]

​@@dudeman3186why would you need a 4x4 truck as a college student? He's talking about a-b cars which are low end used cheap cars 😂

[@lavs23]

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.

[@ShakaHoola]

Your point on opportunity cost was some of the best advice I heard when I was buying a car last March. I went with that approach and it ended up saving me thousands. I watched many other advice videos at that time and nobody else mentioned that tactic.

[@user-mp2vu6xl8p]

Hi there! I’m not sure which vid of Humphrey’s you were referring, but in short would you say the answer should be buying? Since you mentioned that decided to buy one? Thanks!

[@syusi]

I bought a Honda Civic (all cash) 21 years ago (synthetic oil, regular maintenance and easy driving is the secret to its longevity) and, at 67, think it might be the last car I ever purchase. For the first 19 years of ownership I was making ‘car payments’ into my investment accounts. I retired two years ago and wake up every day realizing how wonderful it is to be debt free. A reliable car, taken care of, can be a wonderful financial tool. And so is this channel. Believe me, you’ll be old one day and you’ll be glad for the advice offered here.

[@user-sk7ji5wu5f]

⬆️Get in touch with me!❤

[@yodawg3469]

When a vehicle payment is as much as a house payment we've hit a new level of idiocy.

[@mikezerker6925]

My monthly mortgage used to be $976 per month! Some people are paying way over that for a car!! Mind blowing!

[@looncraz]

I care far less about losing a car than I do my home... as such I didn't buy anywhere near the home mortgage brokers, realtors, etc, wanted me to buy. To me, $200k on a home was already alot - I want to be able to pay the payments using passive/guaranteed income for years to come if it came down to it. In contrast, let's say I'm sick... well... I don't need a car, I can sell one or both of them, recoup most or all what's owed on them, and be done with it easily... doing that with a house is more time consuming - and I have to move, which is a hassle in and of itself (and far more expensive than the beating I might take on a $70k car). Thankfully, the used car market is stupid and my cars are both worth more than what's owed ( in fact, my Volt is probably worth more than I paid for it ). I pay ~7% monthly for my mortgage (all costs included)... I pay nearly double that on car payments. To me, it's just a matter of outflow vs inflow, the distribution isn't terribly important. Considering most people in my income bracket are spending 20%+ of their monthly income on their mortgages and then another 10%+ on their auto loans, I have much more disposable income and more headroom.

[@sunburntattic54gamingchann83]

Facts my co worker just bought a 100,000 dollar gmc truck traded his truck in 32,500 and is paying a 1100 a month of 84 months that’s wild af

[@mikezerker6925]

@@looncraz the car market is going to flip really soon with rising interest rates. Your cars may not be worth much in a few months. I have been buying used cars (before this craze started) usually 3 yrs old and after the depreciation makes them cheaper. I currently own a BMW and Lexus, paid ~20K less for each than if they were new.

[@looncraz]

@@mikezerker6925 I usually buy cars a few years old precisely to skip the major depreciation. Bought my 2018 Volt for $18k in 2021, just as the market started going stupid... market rates for the car had already exceeded $20k but CarMax hadn't updated their pricing, making them the cheapest by a mile. Managed a 0% loan for that purchase, which shocked me... no extras or anything. I did buy a new 2019 Volvo XC90 T8 Inscription, but that was mostly forced by the high cost of (and lack of available) used models, the $7500 tax credit making it cheaper, and a few other factors that made going new the smarter choice. That was $1400/mo in payments for a few years :eek: I keep my cars until they fall apart or reach about 200k miles, sometimes a bit more, so I have a good 4~5 years before I really care about the used market, but both cars will be long paid off before that happens.

[@Lakersfansince95]

I bought my 2014 base trim malibu during the peak of car prices in 2021 because i needed a car and inventory was low for a subprime buyer like me. I learned a valuable lesson in financing this car so far and its that once im done paying it off i NEVER want a car payment ever again unless its absolutely necessary(family needs or work needs etc) 😅

[@dlasti]

Outstanding. I paid cash for my used car and pocketed all the subsidies from my city & county job. Big relief.

[@maloup.1874]

It’s been 18 years and I’m still driving my 2005 Corolla. 13-14 years of no car payment!

[@i.d.6492]

Ok

[@bw1532]

I'm going on 19 years with my 1997 bmw (paid $7000 cash in 2004). Lots of diy, but it still puts a smile on my face. Stay away from turbos, automatics, SUV's and staggered wheels and you are my kind of person.

[@mitchbandalan9450]

Still rocking my 2008 VW Jetta

[@submissions72]

You're the real MVP!

[@MrFuchew]

My parents have a 2005 corolla they bought new and beat the shit out of. Still going at 200k miles with absolutely abysmal maintenance history.

[@ericpass9749]

My rule now is I pay cash for it, or I don't get it. Amazing how your thinking changes from your 20's to your 40's. Thanks for the great info!

[@user-sk7ji5wu5f]

⬆️Get in touch with me!..❤

[@DarkStryder360]

I had that thinking in my 20s. It's the new generation that have finance on tap. When I was younger, people spent £500/1500 on a car, and that was it. Nowadays people think they need to spend £10,000+ for their first car.

[@redriver15262]

these numbers are so wild basically most people cant even afford a decent old used car. at $40,000/year theres basically ZERO cars that you can own with a total monthly payment of $333 including insurance and maintenance. thats literally impossible

[@americanboy1332]

Yeah.. in 2021 I was earning $40k, bought a used 2018 Kia forte for 15 grand total (5 grand down) and I was paying 190 a month plus 90 for insurance, but now insurance raised to $160 a month so I'm already over your budget 😂 not saying that you won't be able to have this low payment now... And now I'm also afraid it may get stolen by those Kia boys 😂😂😂

[@cruel6710]

@@americanboy1332 your insurance rate is insane, I'm paying $260 for 6 months on 2019 Mazda CX5 (Geico). If you do some shopping around for insurance, it will save you a lot of $$$.

[@douglaschester2097]

*Humphrey is beyond amazing.* “How to create income flow to afford any car”

[@douglaschester2097]

Making money is action, keeping money is behavior and Growing money is knowIedge

[@douglaschester2097]

I am fortunate I made productive decisions that changed my life forever (accumuIated over a MiI) through my finance-mentor. I'm a single parent, bought my house in January and hoping to retire at 52 by next year.

[@douglaschester2097]

sear ch the name, lf you care

[@douglaschester2097]

*Rebecca Martin Watson*

[@svenoliver6040]

l’m amazed to partake on this, lt has rekindled the fire to my goaIs.

[@myusernamerocks3]

I make $151k per year, and my car payment is $352 per month. I would never dream of paying $1,000 per month. That's insane.

[@RGE_Music]

Goals.........................

[@richard9799]

What do you do for a living?! I work in Healthcare and am trying to get paid a bit more so I can be around 120k a yr

[@mytrung]

Same here!I felt bad getting a 2023 Honda civic thinking I was over stepping my means. But it is nice to have a car that is reliable now.

[@jhonen32629]

@@mytrungYesssss. Love me a Honda.

[@ScottishTerrorsInLA]

Exactly, that chart says $1083 for me and I’m like hell no. Just paid $268/mo for 4 years and it’s so nice to not pay that anymore.

[@gavinnord9660]

Congrats on the 1 Mill!!! And honestly, this video put into perspective what I could afford at the moment or even in the future, I have been tossing around the idea of getting a newer car than the one I have. But your video shows that I have a bit more to do before I should start to really think about it, so thank you :)

[@shadowuchiha4311]

Really appreciate you making this video. Especially since I’m thinking about getting a lease. I did not know about the mileage limit.

[@AJDelRose]

Great video! I'm 29 years old and in 2015 when. Turned 20 I bought a Hummer which was a dream car to me and I took out a big car payment and the truck just cost do much to maintenance and repair I was sinking money I should of been saving. I was young and made a mistake it was the first thing I ever bought with my own money. But in 2020 I finished the payments and finally decided to sell it this past January and got just a used 2013 Ford Fusion and pocketed most money from the Hummer. I've been sabing do much more money. Honestly, a car doesn't impresse me as much anymore now I'm a bit older. I would recommend anyone thinking about buying a car they can't really afford is to rethink it, don't make my mistake.

[@Allagi22]

I work in auto finance and it is INSANE how often I see applications where people are looking to finance a car with a payment bigger than their mortgage. Cars are depreciating assets people, and they have never been more expensive then they are right now. That car loan debt has no upsides or chance for return on investment. You are literally throwing your money away when you decide to finance that $80K Silverado with all the options at 84 months. Some people have the disposable income to throw money out the window like that but 95% of people just want a cool truck and are willing to stretch their budget to get it, which is an incredibly stupid move. I personally could afford to finance a vehicle like that---but I absolutely never would. The last car I bought was used, I financed $14K, over 48 months, I paid it off early and I am still driving it. It's 10 years old. If you can avoid financing a car in today's market, by ALL MEANS do so. It is an absolutely terrible time to finance any vehicle.

[@adrianomarra7494]

That’s what I’m talking about 👏👏👏👏 you will never regret NOT going into debt to buy a car, specially now…

[@o0mka]

What about option to buy Electric car? For example in Germany I bought financing car 1,97% per year. (Cheap money), in 6 months will get a grant for this car, in 1 year I will sell this car with the minimum loses, basically cost of having this car during the year will be around 3k. That is cheaper then rent a car or leasing.

[@JohnD418]

These people are probably patting themselves in the back thinking it's pretty great they were able to "afford" this "great" car they wanted. That they could fit the payments in their budget (paycheck). Did not remotely estimate how much money went down the drain once lease is over. Then they need a new one and wonder why they never have money to set aside for retirement. At least a mortage you keep equity.

[@write2nick]

My thoughts exactly. I wouldn't buy a car if I can't pay it off in 4 years. Also I won't pay more than 1000 a month. For me, buying a second property is absolutely more important than impressing my friends.

[@anaccount7923]

@@o0mkaElectric cars are boring, there’s no engine noise.

[@xMontorix]

I make 100K/year and have an 05 Hyundai Tiburon and ive been driving it forever. Ive been trying to stay discplined and not get my 65K dream car.

[@payne7761]

I net 80-100k a year and drive a newer jeep I paid 28k for but I keep a 93 ford escort as backup lol. Love that little ford.

[@awesomemusic3882]

Similar story here, stay strong LOL. Nice cars a money pits.

[@xMontorix]

@@awesomemusic3882 Thank you! I needed thos.

[@MuzMovMix]

how miles do you have on your Hyundai?

[@jamesstuart3346]

Excellent advice. I would only add that there are lots of cars that depreciate very slowly. The first-year rates for Toyotas and Hondas are down around 7% to 8%

[@kevinpob]

New subscriber. First time seeing your video! Brilliant. Thank you.

[@tombrown457]

I somewhat did the 10% rule without knowing. I made 42k last year and got a 2000 camry for 2.5k and put 2k in repairs. It has 185k miles and runs great

[@humphrey]

Nice!

[@TBjunk25]

I’m only 19 but I personally think if you can’t afford a car with cash, don’t get it at all. I got a 600$ 2003 saturn sl3 and it works perfect. The main point of a car is travel, yet most people spend thousands extra just to have those extra layers of comfort. If you want to be rich you have to let go of comfort.

[@humphrey]

Love that mentality but sometimes people do need cars and cant buy them with all cash (especially if its a more expensive vehicle than a $600 saturn) so they take the financing option

[@andrermn]

@@IrisP989 exactly. investing it into stocks or the S&P makes more sense, but only if you pay little interest rates like yours.

[@IrisP989]

Ahhh.. so people that want electric vehicles, for example, that cost $60K should just bring cash to the car dealership otherwise they can’t afford the car? We purchased an electric vehicle for various reasons, put more than 20% down, got a great interest rate of 2.49% and are paying the monthly payment without a problem. In the meantime, the money that we could have spent paying it off right away is invested or saved and we get a higher return on investment.

[@Tialian]

​@IrisPG2438 what you have to consider though is you don't own the car, miss a payment or two and you might wake up to a missing car. Although you might get a better return on investment (which isn't really a guarantee), full ownership gives it's own peace of mind and you don't have to worry about losing important assets during a short term crisis where you can't make the payments.

[@IrisP989]

I will have full ownership. Does it matter if it’s now or later? I have the full amount that is left to pay in my account. I just prefer using the money for something else. Regarding missing out payments in general, that is why it is important to have an emergency fund of 3 to 6 months. In order to not miss a payment or two and get into that situation.

[@dealforbet8888]

I love how Humphrey gives practical advice on car expenses that can really make a difference in your financial future.

[@jasonpowell8582]

You make valid points, for someone who doesn’t own their home and has other debts. What about an home owner with no mortgage, no debts, maxed out 401k and Roth?

[@CrayonEater94]

I learned my lesson the hard way…29 years old and currently on my fifth car. I financed cars for the passed 12 years and I regret it completely. I was always thinking about how cool I would look but decided to finally wake up and stop spending money on stuff that goes down in value. Switched from a BMW to a 2023 Camry that I got for 29k out the door. Couldn’t be happier and planning on keeping it for at least a decade.

[@frescosmalls]

Being more concerned about looking poor than actually being poor is one of the most common problems people have. Good on you for snapping out of it and turning things around.

[@lfpurpose]

You apparently still didn't learn your lesson if you bought a brand new car LOL

[@Mogardie]

@@lfpurpose facts

[@basilman121]

2023 Camry Hype train! I got the XSE trim with a few upgrades to the package for 36.5k OTD, but it's my daily commuter and I plan to keep it for 15 years. To those criticizing him for buying new, the used market isn't exactly priced well for the reliable camry. Why would I save 1k on a 2022 Camry with 30k miles on it when I could buy new and do a proper drive train break-in, and know the vehicle maintenance from the start?

[@Aikynbreusov]

I'm still driving my mom's 2010 Lexus LS460L....runs like new...got all major repairs done under warranty...... my grandma just gave me her 2006 Lexus LX470 that clocked 190,000 on the odometer and it still runs like brand new.... don't think I'm buying anymore car.....

[@johndekalb3599]

Sadly, many car manufacturers are not making cars for the average income earner. Following the 25% guideline, a salary of 50k puts you in the 12.5k car price. The cheapest car in the market is the 2022 Chevy Spark at 13.6k

[@seed.planted]

There are used vehicles less than 12.5k. That’s kinda the point. Don’t buy a brand new car

[@Eibarwoman]

@@seed.planted That's where the hazards of being post-warranty, questionable reliability, high mileage, electronics issues whether it's sensors or infotainment, etc can all easily turn into big repair bills. They're cheap because either the car's old, unreliable, high mileage, or some combo of the three.

[@kindlad6087]

@@seed.planted a 12.5 k used vehicle is going to be at least ten years old these days. Better buy a Japanese car and pray. The old normal is gone

[@ROVA00]

@@Eibarwoman that’s not really true. a 4 year old car with 40-50k miles will not be giving you any problems (let alone expansive ones) for a while, unless you buy a POS car. Cars these days will rarely have problems before 100k miles. This is especially true if you research brand reliability and stick with tried and true Honda/acura, Toyota/Lexus. The only scenario where I would buy a brand new car is if I’m making over $200k/year and if it’s a sports car that is more likely to be abused. My Mercedes c-class was worth $53k when new. I bought it when it was 4 years old and had 54k miles on it for $19k. It looked and even smelled basically brand new and 50k miles and 4 years later, the only thing I’ve had to do is regular maintenance and replace the thermostat housing.

[@Eibarwoman]

@@ROVA00 The problem is the depreciation from 20K to the affordable to the masses 12K under the guidelines suddenly moves from 4 year old vehicles to a 10 year old vehicle. The market's not exactly behaving rationally and the electronics/infotainment are the least reliable aspect of newer cars.

[@le-johnny9236]

Well, one thing is that saving money makes one be able to buy a more expensive car. I also think money is meant to be used, so while it's important to buy other things than a car, in the long run we all die so it's not necessarily a bad choice to buy an enjoyable car. It's just more important to avoid debt in general.

[@timothygarycarolus1018]

11:32 After watching this, I am not sad! I feel enlightened, AND even more content with my 8 year old car. I'm just a bit annoyed that we aren't taught this earlier in life. Thank you

[@hosseinmehdi1110]

Do yourself a favour, and do either of the following: 1. Buy a decent, safe, reliable, and cheap (under $10,000) car (e.g., Accord, Camry, Corolla, Civic) that is ~10 years old and run it till it’s dead. 2. Buy a moderately priced used car ($15,000) that doesn’t depreciate as fast (e.g., Japanese cars) and run it for 5 years and sell it for $7-10,000 afterwards. Currently driving a 2009 CRV that I bought for $6,000. It’s absolutely perfect. I could drive it for another 5 years if I wanted to but I will probably sell it in a year and get something newer like a 2012-15 4Runner

[@NPC10912]

All the models you listed have gone up the most in price both in New and used market.

[@BellaJournee]

I bought a 2015 Honda Accord and paid in full. It was a sacrifice putting that much money away in savings but the freedom and peace I have knowing my car is fully paid for is priceless!

[@EricPardo]

Concise and succinct with just the right amount of illustrations

[@cccycling5835]

I’m so glad that I’m into old Japanese enthusiast cars and just fix them up. Cheapest way to be a car guy ever.

[@antman674]

Awesome video! Lots of great info. Its just amazing how many people get sucked into buying a vehicle they cant really afford because they want what everyone else has or are easily persuaded by the sales person. Nobody wants to be patient and put in the time and work to afford something comfortably. They have to have it right now. And you should definitely have your finances figured out so you know exactly what you can afford, length of term, and monthly payments, insurance, etc before you set foot on a dealership. Otherwise those sales people will shake you dry! Give yourself some wiggle room in case extra unexpected costs come up too. If you figure you can afford max a $25,000 car, start looking at cars that are around $20,000. You may find something you like that is less than the max you were willing to spend and be much happier about your purchase in the long run. Plus there are other things to consider like extended warranties on a used vehicle for instance. Things like that which may not cross your mind when you are budgeting for your car. So a little wiggle room is wise!

[@SpencerJohnsonOfficial]

It all comes down to not having to keep up with the Joneses... I am currently financing my car, but I made sure to not only buy a used car at the optimal point of the depreciation curve, but also one that I can easily afford (i.e.

[@humphrey]

yes agreed Spencer

[@RedSquirreLx]

Porsche 911 holds its value the best. Fyi

[@GizmoMaltese]

What car did you buy?

[@srrtbb]

Keep up the good work!!! Learned something new from this videos. Subscribed and likes!!!!

[@LIV-FREE-VET]

Great video! Love the breakdown and very sensible advice. Thanks Humphrey!

[@tyronewilson7890]

Car notes are insane now. My dad never paid more than $210 dollars on a car note, now the average is $700, not to mention the rise in interest rates. As long as buyers keep accepting them, they’re going to continue to rise.

[@brandonhalberg1261]

I had no financial education at all growing up, and absolutely love your content! I just accepted my first job and have been binge watching all your stuff to help, and it has helped me SOOOOOO much. Thank you!

[@pewpewtactical5288]

Listen to Dave Ramsey as well. His financial teachings will set you up for long term success by being debt free for life and make proper investments to build wealth.

[@BaystheBeast]

​@@pewpewtactical5288 Dave Ramsey is good but some of his recommendations can sometimes be very old school. I recommend also watching him but make certain you sprinkle in some diversity to hear the pros and cons of other ideas and approaches to financial success.

[@andrewmackinnon563]

I have a 20 year old Mercedes W203 that I bought used, 5 years ago. Everyone tells me that I spent a lot in repairs, but (consider chilean context), annual tax is cheaper, I don't pay any credit, I spent a high amount in repairs and maintenance and the car still runs sweet, but it will be much cheaper than buying a new one for the nexrt 4 years. When this one is dead I'll surely follow this advice :) Thanks!!

[@carlm7764]

Almost 60 yrs old here, great advice. I try to buy second hand as much as possible. But with a 25% limit methodology....not much options for a guy who likes sedans with comfy seats for my skinny butt.

[@Lukemasonmedia]

This completely goes out the window when you’re a car enthusiast, I pay for a car I shouldn’t cause it brings me more joy then almost anything else

[@andrewdinh5428]

right life is too short to drive boring car. I only make 70k ish a year but I always dreaming to own a Porsche GT3 lol

[@roarbahamut9866]

Indeed. Most of these type of videos do not aply to people, that have their car as a hobby. If you do not enjoy traveling, buying a house or other traditional money sinks, then a more expensive car is also possible.

[@dnegel9546]

You say that until you have an emergency then suddenly your pride and joy is for sale at a huge discount because you need the money on the spot. Im a car enthusiast myself but there are always cheap alternatives. Example i want a c8 corvette but instead i bought a C4 corvette that is not running and sitting for about 15yrs. Has mold on the inside and paint is sunbaked. Cost me all of $2,000.00 ❤

[@max-zv7sf]

I get the draw to cool cars, but ever since i got into motorcycles, expensive cars don't make any kind of sense to me. Get a Yamaha R6, or even a R1, and that will cost a tenth of a performance car and absolutely terrify you with the power, agility and capacity that a (overall reachable) bike can have.

[@roarbahamut9866]

@@dnegel9546 Im not saying that you should put everything in the car. Its a hobby, so keep your spending in check. Always have an emergency fund etc.

[@glenf4115]

Solid advice. The addition of Edmunds cost to own calculator is terrific as it includes the higher cost of insurance for newer vehicles and maintenance for used vehicles as well as fuel if considering a hybrid or EV.

[@friscodog]

Returning to the States soon, so I'll be needing to buy a car. Thank you for the very helpful guidelines!

[@Mattribute]

We are still paying on our family car but the older two hatchbacks have been paid off for a long time. Its a good feeling when you get to no more loan. The third car, a 2014 Focus needed a bunch of work on the suspension due to rust, and other issues. I paid the $2700 because I examined the cost of a replacement and figured it will probably last a few more years. Having the third car has been a great luxury because it’s a spare and we can lend it out when family or friends need to borrow it.

[@naifalqhtani5285]

Thanks for the informative video i’m just getting into buying my first car and few days ago i decided not to buy a car that’ll keep me shackled in debt just to impress people who don’t care, and i would like to add that people should look for reliable well known brands with cheap car parts because people can get fooled easily into buying unreliable cheap cars that will be a nightmare for them it would’ve been better if they bought that expensive car they wanted

[@brandonhuang4414]

One thing I learned too is buying a used/certified pre owned with good mileage is just as good. You also don’t get the big depreciation up front

[@praveenpulikutti]

I dont have a car payment.. I recently bought a new minivan due to family getting larger but we saved up cash for a couple of years before making the cash purchase.. it was soo satisfying..

[@lincolnshire100]

Great video! Only thing I would add for clarity and this may be different in the US as im UK based, but the interest you pay is front loaded on the agreements. At the begining of an agreement the majority of your monthly is pure interest. If you were to get into trouble on one of those longer agreements have less that 50% equity even after 3 years of a 5 year agreement as an example. Additionally if someone took a longer payment plan and decides to pay it early say takes 5 year over 3 year but pays off at 3 years they still would have wasted money on the extra interest.

[@spacetoast7783]

It's the same in the US

[@Yeti.1669]

I’m in car sales and I do have to say . Good luck if you use this for shopping. Even at a franchise dealership during this time finding a $14,000 is very hard. With inflation and most manufacturers behind still from Covid, used car prices are high . So a $14k car will either cost more money long term to maintain also if the mileage is high then your bank is going to give you a higher rate they don’t care if your an 800 score they care about the year and mileage and resale value. So if your trying to find a budget car your car payment may be lower on a new car for the same term. To the buyers it make way more sense to buy something that’s newer and less interest rate .

[@tailedbeast7829]

Thats why people shouldn’t finance cars at all. Someone who make 50k a year after tax shouldn’t finance. Just save up and buy the car at around 20k. You get almost everything which isn’t older then 4 years and hasn’t more then 70k miles on it. But that what you people at car dealerships wouldn’t sugguest the average joe ever.

[@Yeti.1669]

@@tailedbeast7829 if someone can live rent/mortgage free it would be easier to do to save $20k but in today’s economy it’s hard to just save up money like that.

[@dennislippert8875]

@@tailedbeast7829 Have you looked? $20k won't even get you into a 4-year-old Civic right now, let alone "almost everything"... prices are sky high. Almost any four-year-old used car is priced within $5k of it's original MSRP. On the plus side, mileages are generally LOW due to the pandemic. I bought my 2006 car for $10K in 2014.. and the same car (with the same mileage) would command every bit of that today.

[@spectac1]

@@tailedbeast7829 with how people drive these days, I never will buy a car that already has 70k miles on it. I'll spend a little more.

[@jasonhurdlow6607]

Not hard to do at all. Just buy an older car that has good reliability (like a Toyota), do proper maintenance, and your own repairs when possible. Buy from a private seller, so you're not throwing money away at a dealer. In fact you really never need to spend even as much as 14k. People significantly overspend on cars. Quit caring what your neighbors think.

[@DMH51]

I'm still driving my old 1999 Toyota Tacoma. 4 wheel drive, standard/manual shift, and basically analog. No power windows or anything. Pros: Easy to repair and it does have AC. Cons: Underpowered with only a 4-cylinder motor.

[@jonathanwhiteacre7046]

99 Land Cruiser here. I'm a little tall for the tacoma and need to fit the car seats or I might have one instead. Love the manual

[@RossGoneRogue]

Unless you own a hauling business or own horses there's no need to have a big displacement pickup. Your Tacoma can do 99% of the activities a V8 full sized pickup can do and will last longer too.

[@halsd5857]

The other problem with getting a car that you can afford, which is usually a higher mileage, older car if you don't know how much it's gonna cost to fix it, I mean, at least with a newer when you have a warranty and you can save up for things, but if a fuel pump breaks the transmission engine brakes it's on you and that's thousands of dollars

[@jordonbay7778]

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. I 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.

[@MaSa-bp5qe]

I completely agree. The extra cash can be used for investment in to a business, Roth IRA, 401k, etc…

[@user-jl7ht2eb3b]

Well done video. I am in the car business and work for a high end store and it amazes me how many people will come in and pay a crazy amount of their income on a vehicle. I even had a couple in their 50s that wanted to buy a house and were told to lower their car payments. When I suggested the nice low miles Honda we just took on trade, the wife said she wouldn't drive "that" and instead she wanted the brand new luxury car that was increasing the current car payment.

[@Dbb27]

I’m a Realtor and have seen way too many people turned down on a loan because of car debt. They are short sighted and hopefully won’t end up like your fifty year old couple. No house and a flashy car.

[@Shay416]

At that age, it’s just sad

[@treeroofgrass]

😮😮😮

[@Dbb27]

@@Shay416 driving their quickly depreciating net worth.

[@Undefined14]

When I was 18, I bought a brand new car off the lot. It cost 100% of my annual income. I made the decision because I didn't want to deal with a hunk of junk that someone else had abused. Practically zero maintenance, and fuel efficient. I'm turning 30 next month and it remains the only car I've ever bought. It's been paid off for six years. It's one of the best decisions I've ever made.

[@snc237]

You were 18 probably still living at home. Try that when you 30. Not going to happen lol

[@user-sk7ji5wu5f]

⬆️Get in touch with me!.❤

[@Xyz_Litty]

@@snc237 You should be making twice or triple the money you’ve been making at 18 when 30 ..

[@kiresedivaneb]

What a comment. What did you eat? Did you live in the car? Are you understating your income because other people were paying your expenses when you were 18?

[@DarkStryder360]

Sounds like you're not interested in cars. But wasting your money in your early years for a chunk of metal and plastic? Why?

[@doncho6453]

I watch this video over every time i want to get a new car to talk myself out of it 😂

[@randoMotions]

Damn, I love efficient videos. Well done!

[@grizzlyuppercut]

Me: This should be helpful! *lowest example is $40K/year* Me: Frick my life.

[@cyberdefault]

If you can, ware house jobs can usually get you well over 40k a year , tho it’s tough work

[@bosshoss6640]

​@@cyberdefaultyes you can. But still can't afford Anything. Only 3 or 4 cars under 25k new I think it was.

[@cyberdefault]

@@bosshoss6640 the whole point of the video I feel is not to buy a new car especially on a salary under 80k

[@Doktorfailgaming]

@@cyberdefaultnot in Germany, I have a quite good paying IT job and I am far away from making 40k€/y after taxes…

[@Doktorfailgaming]

@@bosshoss6640welcome to Germany where a basic Ford Focus kosts u way over 30k€

[@Jakub_Andrzejewski]

Kinda similar in Poland. People spend fortunes on cars. Down here it is called " you need to live on a certain level" or " you know it is all about the safety" :) When I lived back in the States I drove cheap used cars and people thought I'm kinda stupid. Now I live in Poland and keep driving cheap used cars and people think I'm kinda stupid :D So I guess as my grandma used to say - no matter how fast you spin, your a$$ is still behind you.

[@humphrey]

love that saying from your grandma 🔥

[@Jakub_Andrzejewski]

@@humphrey Thanks. And I love your videos. Very useful and inspiring.

[@Jakub_Andrzejewski]

@@Kevin-fm1vn Nobody told me I'm stupid. Is more like reading between the lines. Both friends and family think as I am kinda torturing myself not buying more fancy car. They do not get it, by doing so I have more days off at work at the time they get mobbed at work they hate :)

[@greggchaffin1596]

More people need to watch this. I have friends who have 1k-2k car payments and make less than 30k a year. its wild

[@_Martine_]

Are you for real?? 😳

[@WeWuzKangzNsheeet]

Thank you for the video. Thankfully, my wife and I are debt free as of a year ago. House we just paid off a year ago, our two cars are paid off 2011 Lexus ISF and 2020 Toyota Highlander. Looking at the prices of vehicles now and the financial insanity of paying it off now, it makes no sense to look for new vehicles.

[@jcmphreek]

It’s tough because the 35% rule and the 10% rule equate to very different cars you can buy too. I got a car right out of school that’s total worth was nearly half my starting income but the monthly payment was only about 11 or 12% and at that time still lived with my parents and could afford a payment like that since I didn’t have any massive other expenses. Could I have gotten a way cheaper car? Absolutely. But looking back I’m so happy because I got a car I loved, while it was pricey I could still afford it, and 4 years later the car is paid off and I should continue to have reliable transportation and a car I’m very happy with for a minimum of 7 or 8 more years hopefully. It’s hard to follow a specific rule when situations always very so drastically person to person

[@pawrestlingchamp]

You're situation is different because you didn't have to pay for rent or a mortgage which is the biggest monthly expense for the vast majority of people. It still wasn't a good idea, but it is far more manageable.

[@dakotakavana]

@@moonlit85I’m 20 and want to start investing. I’m thinking of financing a car and investing at the same time to accumulate more profit than the total that there is to pay off.

[@Deimian676]

Lol your circumstances isn’t common, and it’s an outlier .

[@DsgSleazy]

@@Deimian676Living with your parents in your 20s is extremely common, I’d argue people in their early 20s and even maybe mid 20s living on their own (this includes living without a roommate) are the outliers.

[@Deimian676]

@@DsgSleazy got ya!

[@Sonofadcuk]

Sometimes it's also about why you need the car for. We got a new car last year because we drive all around the US for work on a regular basis. It wasn't smart financially but the life improvement it created is worth it. Obviously it wasn't the financially smart thing to do and that's not what your channel is about, but I also wanted to express that sometimes when you buy a car you also buy much more and if you're willing to pay for it, it might also be worth it in some way.

[@06Triple]

He just speaks in general guidelines, and it's not bad advice for the vast majority. I own my business, and bought a more expensive truck. It's my office, and I spend more hrs driving a week, then many work. I also spent more for a new venture that I can rent out trailers, actually paying for my trailers and truck payment. That doesn't include the tax incentives for businesses. Breaking down to that level is just not very feasible. At the end of the day, sometimes, a car can be your enjoyment. Some people go to the bar, the movies, or put that money into their vehicle.

[@trenegade5441]

​@Steve Hope while I agree with everything you said it's apples and oranges to compare a vehicle bought for a business than a personal vehicle. They are two completely different propositions.

[@patrikptacek11]

I recently bouth a car for one month net salary. And it serves me well. Takes me wherever I want and that is the point. The seller though the car is in worse contition and it actualy wasn´t. Hopefully will serve me next 2-4 year, so I can save up for some better car. Thanks for the video! Reminds me a good decision of mine.

[@scottwright7177]

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.

[@jackreign67]

Congrats on 1 million subscribers Humphreys. You deserve it. Been watching you for long time and i love your channel. Keep up the good work

[@marcelomatg]

It’s interesting to see this numbers and put them in other markets’ perspective, for example here in Brazil following the 35% rule, only the 1% would be able to afford the officially cheapest new car sold in our market.

[@darkshadowrule2952]

You'd have to be pretty damn upper middle class here in the US right now, minimum of a new car you can insure is realistically 25k+, everything else is either impossible to find or like with Kia, insurance companies either charge through the roof or won't accept them because they're easy to steal

[@Dbb27]

Then don’t buy a new car.

[@darkshadowrule2952]

@@Dbb27 if only one percent of people buy new cars how are there supposed to be enough used cars for the other 99 percent? Use half a braincell

[@dubsessed9790]

Problem is, sure I need to get from point A to point B, but fast and comfortably, and with a speedy detour through a curvy backroad. It's literally my therapy to decompress from work, as well as my hobby. But I understand that not everyone looks at cars the same way, and that's OK too.

[@stuartbeaton-gm9xn]

I had my last car payment in 1973 on a Buick Century. I drove it for five years and only bought cash ever after. Last year I sold a Tacoma and a Corolla (my wife can no longer drive) privately and bought a 2018 Rav 4 CASH of course.

[@syang1390]

Terrible time to buy a car but I did. My 03 Camry finally gave up on me. Got a 2023 corolla cross. Let's say I'm eating rice and salt for the next 5 years. Lol! Jk.. im just frugal and would rather use that money elsewhere. Payment of 435 a month. I know nothing about cars so I feel its better for me to get a newer car with warranty to take in if anything happens. Thanks Humphrey

[@norwegianblue2017]

This all worked pretty well until the past few years. The average price of a new car is something like $47k. So the usual answer to getting around high new car prices is to buy used. Well used cars aren't cheap like they used to be. I keep waiting for a halfway decent car that is 3-5 years old to fall within my budget and it isn't happening. Thankfully, I have a very reliable 12-year old Acura and I can try and wait this out.

[@NooDLES411911]

It will happen. I see soooo many used cars in lots right now and it'll get to the point where they are forced to sell them cheaper.

[@RossGoneRogue]

Happened to me pre-pandemic when I bought a truck. I was looking at 2-3 year old ones on the lot that were only listed about 3-5k lower than the new models and they had an average of maybe 50-60k miles on them. When you buy used you usually don't get any of the dealer benefits so when I pulled the trigger I got a bunch of GM cash, money for having good credit, some other 'sales marathon' thing and spent less than $1k more on a new truck with 7 miles on it than a used with mileage already on it. The dealer incentives kinda ruin that "buy 2-3 year old vehicle" rule sometimes.

[@norwegianblue2017]

@@RossGoneRogue I have literally seen the used version (30k-45k miles) of a car I was looking at for the same price as it is new within a two hour drive. When I bought my Acura in 2013, it was 2 years old with 18k miles and it was $13k off of the MSRP price.

[@RossGoneRogue]

@@norwegianblue2017 those days are long gone I'm afraid

[@ted9592]

Yep...I am still driving my old pontiac waiting for the market to get under control. I have been waiting for 2 years.

[@billystylish]

Good advice, tip #2 doesn’t refer to inflated car market where used cars hardly depreciate though

[@Cunningstunts23]

Love your channel, thanks 🙏

[@asmranonymousgaming901]

I love my 2017 Buick encore! $26k OTD grandmas come up to me all the time asking how I like driving it

[@InternetUser._]

Bought my first car for 5500 cash off Craig’s list. Still driving it. 5x’d my income in that time. Commute in my company car. Don’t buy a nice car until you own the garage you’ll be parking it in.

[@humphrey]

nice!

[@pne514]

Very glad my car payments are right in the range you suggested.

[@jdawg414]

This was actually refreshing because once we get our savings and debt paid off we can afford the car we wanted. Plus you included it in your cost to own example so I’m calling that gate. 😉 Yep, it’s the 4 runner.

[@gregstewart3641]

Best financial advice I ever received from my father regarding car buying-- 1-save enough to pay cash. 2-if you must finance - nothing more than 36 months. If you finance longer than 36 months, you’re buying a car you can’t afford. Retired 18 months ago and still drive the SUV I paid cash for 23 years ago.

[@StEvEn420BrUlE]

That is really bad advice

[@92miata]

paying cash means no interest and no need to worry about the interest rate.@@StEvEn420BrUlE

[@craigjones4810]

I laugh when people brag about owning vehicles for 20 plus years. Try doing that in the northeast.

[@liddlebopeep]

Dealers now charge higher price for cash purchases than if you finance.

[@mikepawlikguitar]

Congratulations. Do you want a star on your fridge for your effort? Did you live and love life to the fullest and are you happy? If so, you did it right.

[@alysonlopens]

Hey. Here in Brazil you pay 1.92% interest per month with a good credit score. If the car is used, the interest increases. It's brutal to live with an environment of high rates.

[@Screwston.tx713]

I needed this vid to humble me. Thank you 🙏

[@darrisdavid]

Loved it. Very informative video. Gave me new perspective on car buying. ❤

[@renaissanceman2075]

This was very helpful, and well laid out. It's nice to know that my budget is on point when compared to my desired car and my income. Buying a car is a large move, especially for thoes of us in our 20's.

[@burtonboarder503]

Someday we will get back to cars depreciating 20% in the first year, but many used cars still sell for near msrp (over in some cases) at 1 year old. Car market has been horrible for years.

[@tjtj7161]

I just paid off my 2018 Honda Fit I got in 2019. My interest rate was low for picking a car 1-year behind at the time and was paying around 225/month at 75K/yr. I'm happy I can finally have no monthly payment, hopefully this thing lasts a long time. I've had it about 5.5 years and it's almost 40K miles. I work from home, so I'm hoping it lasts longer than usual.

[@sharonnguyen3539]

Appreciate this video. Thank you.

[@louisnvrr]

I had to buy a car after mine got totaled, after having just paid it off😭 Because it was the time when used cars were going for more than new cars it made sense for me to get a brand new car. I make just over 50K and my car payment is $326. Might be more than the rule suggestions but overall happy with my decision(plus the insurance payout was greater if I went with new than used🤷‍♂️)

[@jacoblacasse8845]

I’m 18 and I recently bought a 2016 Toyota Corolla my car payment is $310 a month over 48 months. I think I got a good deal I put 5k down and financed about $12500 with a warranty that covers basically everything. This is something I’m proud about and plan to drive this car for 10+ years.

[@deborahjackson6108]

Make sure you change the oil every 5k miles. Got that from a trusted Toyota mechanic.

[@rahundsigma]

​@@deborahjackson6108thats like telling him to breathe air

[@heyohlaha7858]

Lol changing oil at 5k miles is standard for all cars.

[@basilman121]

​@@heyohlaha7858 I think they are providing a reminder because toyota has been pushing the 10k mile oil change on their new vehicles. Which in some cases is way too long, especially if driving in city.

[@Michael-ur5qb]

Interesting video. It’s also just a starting point. Once you factor in other expenses its probably much less. My car note is less than that ($80k) but because of how expensive housing is around me $600 would be too much.