This is why you’re better off buying a used vehicle that’s already fully depreciated. That way you don’t have to worry about it going down in price. Always pay for it in cash.
Does this apply to your gross income or net?? Also when you speak on the 10% is that for your monthly payment or expenses such as gas and small repairs?
@@jeniferjohnson374what I’m asking is are you putting the full 10% to your car note in this case OR are you adding maintenance expenses in that 10% .. it’s not the same if 10% is 10 dollars is the full 10 going to a note? Which then can be a monthly note of 10$ OR is 8 going on your note and 2 going into car emergency fund?? If this is the case the car note can not be more than 8$ a month which changes the spending limit for the vehicle .. I would have spent 50 dollars over my intended budget if the second way is the correct way
The other person was clearly no help. Since Viv specifically said “these transportation costs” I would assume she meant to include gas and some maintenance (you could probably estimate the annual or quarterly costs and spread them out monthly). So, if you’re making $70k a year (around the median income in the US) after tax that’s $55k net; that’s roughly $4500 monthly, which means your total car costs should be around $450 per month, MAX. That’s pretty good imo, compared to the stupid things people buy with terrible interest rates and sky high car payments.
That type of payment is only for new cars? Because if not is it better to buy brand new or used? I know that a car losses a big amount of its value on the first year
Probably, since some used cars barely have any mileage or time off the lot. Some people can ONLY afford used cars. If you make like 20k a year, then you probably can only afford a used car.
I would say that any budget car from the top auto makers would be just fine. Just depends on the size you want and what you are using it for. I bought my 2019 Kio Rio from a car rental dealership for $12,000 and it's still running great with no issues.
Definitely! Toyotas, Honda, Acura, perhaps some Hyundais, depending on the Ford truck, and some Subarus. I bought a 2009 CRV in 2015, I haven’t had 1 major problem. (I did spend $1.5k on the air conditioner cause I spent a lot of time in the desert.) I get 20/22 city, 28 hwy (I do a lot of long trips). I’m at about 160k and I expect like my 1987 SR5 pick up, I’ll make it to 400k easily with only replacing small parts. This generation of CRVs are all over the road! If I bought a car today, I’d get the 2017 RAV4 Prime. Drove one recently it was sweet! If I wanted to spend a lot more, or had the money, the 2021 CRV Hybrid or RAV4 hybrid would be a sweet treat.
Buying car is for uber drivers. I order Uber every other day and I get picked up by a Tesla. If you have an expensive car, you'd out to be driving Uber to pay your car loans.
@@ManPursueExcellence the point that I was making was that if you need to make 100k for buy a 30k car then 99.99% of people would never have anything nice. By these people's logic you have to make a million dollars a year to buy anything nice. That's not realistic. We aren't rich and not everyone invests. I'm single with no family, a 70k car with a 100k salary isn't farfetched.
This is why you’re better off buying a used vehicle that’s already fully depreciated. That way you don’t have to worry about it going down in price. Always pay for it in cash.
Or become a billionaire so depreciation don't really matter
@@foltyn_noahyes you be a billionaire first
Billionaires care MORE than poor people like u or me
@@borntodoit8744 i get what u mean but theres prob some billionaires that dont care about depreciation tho
Exactly the right time for this info! Thanks for the advice
I make $100,000 a year and my husband makes $60,000 a year and we still only paid $11,000 for our car.. and that car will last us 8 years probably
Nice❤
Get Toyota or Honda, and mske sure it's a good year. Great maintenance should last well past 200k miles.
This is why I follow you and love your content
Whew,I’d have to increase my income ASAP.
Thank you!
Exactly!!!!!
Wisely < wisley
Under normal circumstances YOU ARE CORRECT ❤SMART THINKER SISTER VIVIANBFF 🔥
Does this apply to your gross income or net?? Also when you speak on the 10% is that for your monthly payment or expenses such as gas and small repairs?
It would be 10% either way. Because 10% is 10%. You can do it in small pieces or the big picture the math is the same
@@jeniferjohnson374what I’m asking is are you putting the full 10% to your car note in this case OR are you adding maintenance expenses in that 10% .. it’s not the same if 10% is 10 dollars is the full 10 going to a note? Which then can be a monthly note of 10$ OR is 8 going on your note and 2 going into car emergency fund?? If this is the case the car note can not be more than 8$ a month which changes the spending limit for the vehicle .. I would have spent 50 dollars over my intended budget if the second way is the correct way
The other person was clearly no help. Since Viv specifically said “these transportation costs” I would assume she meant to include gas and some maintenance (you could probably estimate the annual or quarterly costs and spread them out monthly).
So, if you’re making $70k a year (around the median income in the US) after tax that’s $55k net; that’s roughly $4500 monthly, which means your total car costs should be around $450 per month, MAX. That’s pretty good imo, compared to the stupid things people buy with terrible interest rates and sky high car payments.
That type of payment is only for new cars? Because if not is it better to buy brand new or used? I know that a car losses a big amount of its value on the first year
Before or after tax income?
Are these ratios the same for used and new cars?
Why wouldn’t it be?
Probably, since some used cars barely have any mileage or time off the lot. Some people can ONLY afford used cars. If you make like 20k a year, then you probably can only afford a used car.
@@isabelsalamanca893 he’s asking though would you apply the same concept she taught in this reel to a used vehicle
A car is not an asset!!
Are there decent cars for less than $35k?
I would say that any budget car from the top auto makers would be just fine. Just depends on the size you want and what you are using it for. I bought my 2019 Kio Rio from a car rental dealership for $12,000 and it's still running great with no issues.
Definitely! Toyotas, Honda, Acura, perhaps some Hyundais, depending on the Ford truck, and some Subarus.
I bought a 2009 CRV in 2015, I haven’t had 1 major problem. (I did spend $1.5k on the air conditioner cause I spent a lot of time in the desert.)
I get 20/22 city, 28 hwy (I do a lot of long trips). I’m at about 160k and I expect like my 1987 SR5 pick up, I’ll make it to 400k easily with only replacing small parts. This generation of CRVs are all over the road!
If I bought a car today, I’d get the 2017 RAV4 Prime. Drove one recently it was sweet!
If I wanted to spend a lot more, or had the money, the 2021 CRV Hybrid or RAV4 hybrid would be a sweet treat.
Subaru makes the Impreza and it's top rated for reliability and safety. Plus it gets decent gas mileage and has all wheel drive.
Really! You can get a reliable car for 18000
@@zuhawk15 I’m looking at under $5k.
Buying car is for uber drivers. I order Uber every other day and I get picked up by a Tesla. If you have an expensive car, you'd out to be driving Uber to pay your car loans.
Lolsss I make 31,000 a year
Lease
Lol I'm not buying a $35k car if I'm making $100k a year.
what would u buy
@@Sarchein something in the 70k range.
@@jp23x That’s even worse 😂
@@ManPursueExcellence ikr this guy is actually cooked 🤣🤣🤣
@@ManPursueExcellence the point that I was making was that if you need to make 100k for buy a 30k car then 99.99% of people would never have anything nice. By these people's logic you have to make a million dollars a year to buy anything nice. That's not realistic. We aren't rich and not everyone invests. I'm single with no family, a 70k car with a 100k salary isn't farfetched.