Accountant Explains: How To Afford Your Dream Car

How do you afford your dream car, do you buy it, finance it, or lease it. The truth is, life is not anime, where you have this one Goal, and your life is mission is to accomplish it, and when you finally do, roll the end credits (happy ever after)

The difference is, that in this life, we can pretty much almost buy everything we want, but not own it. The goal is not to drive your dream car, the goal is to own it. Dreams also change a lot, when your values change. Ask your parents, and your grandpa, it's not that they gave up, it's that they changed.

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1. How much car can you afford
- Dave Ramsey says: no more than half your annual income and pay cash
- Generic budgets, no more than 20% of your income on car payments

So I like this Truck: it’s a Toyota Tacoma 2022 TRD Pro ( Sticker Price $46,000 )
- According to Dave I need to be making a little over 90k and I need to save 46k to buy it ( I make 60k I can't buy it )
- According to general financing 20%, is about $1000 a month, and if can get a 72month car loan ( I have 10k I can put down )
- I can leave the lot with my dream car and only pay 877 not including insurance

2. The Problem with this
- $877 over 60 payments in the S&P 500 could have made me $70,000
- And I could have kept my 10k and bought me something else

But what could you buy for 10k
- Well you can buy a Toyota Tacoma 2010, about 14 years old with a little over 150k miles

What does this allow me to have ( Reimagining my dream )

- In 5 years I would have driven this thing about 75k miles
- I will have about $70,000 more dollars to my name
- And if stopped there and never invested again in 30 years I would have 1.2million

3. Here is my advice
- Cars are fun but we are not kids
- We don’t make decisions on looks and fun
- But on utility and needs

If you need a car:
- Buy the car you can afford to buy in cash right now
- Save money, and then buy the car you can afford to pay for in cash and will run for a long time
- Use that freedom to worry about finances, and when you are financially free then worry about having something fun that goes down in value and makes 0 financial sense

I wouldn’t spend half my annual income:
- If I’m broke

I would not go into debt for a car

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

[Jeslmcg]

You have excellent advice. I am in my 60s and am withoutdebt/financially free. Could buy anything I want at this point which is the new Corvette coming out with with 800 hp. but instead, I bought a new Highlander last year and love it. It’s a platinum hybrid edition. I have been retired since 2010 and like to see my money make money more than I want the Corvette. Keep up the good work. You’re absolutely right that is what I’ve done over the years.

[LilBlizzardBlizzy]

Bro this video just saved me from buying a Mercedes E63 AMG.
I definitely don’t need to be focused on buying that car.

[mellupone_]

💎 beater car is probably a 2012 camry, 2010 civic intermediate vehicle would be a 2016, 15,16,19 nissan 370z, then my dream vehicle would be a 2015 or 2016 Gtr or 2017, 2018, 2015 mustang gt or shelby

[Navyblue]

My dream car: any manual porsche 911 from 1985-1999 or 2007-2013, my beater is any manual car that can take me from point a to point b. My intermediate was a 2007 lexus is 250 which i ended up going for. Unfortunately, it ended up being a lemon that lasted me 3 months.

[spillybuilt]

Reliable beaters. 04-09 Toyota Prius. 99-2010 ford crown Vic or mercury grand marquis. 2000-2005 Buick le Sabre or park avenue. Not 100% sure on the years, but around 2006-2010 Buick Lucerne

[ebonysutton]

Good Advice, I’ve watched a lot of Dave Ramsey episodes. To my knowledge he is not telling people to actually buy a car that is half your income. He states that the car you buy should not exceed more than half of your annual income. I’m sure he would approve you going as low as you can but still buy a reliable car. Which I think is always better. But great info for sure !

[davidsarpong]

To be honest Tommy, i just want a white 4x4 suv that can do the job

[Podified-]

Make a vid about becoming an accountant

[bluequadrifoglio]

Cmon man, could have picked a better thumbnail, nobody wants a trash EV and they're not even that expensive.

[creeperstkoed]

So I'm gonna skip over the beater car part because I already have a car that i would consider a (mostly) reliable beater, I have a 2008 Ford Taurus SEL its compeltely paid off ($5, 500 before interest) and its got just shy of 149, 000 miles on it and its got some minor issues (TPMS and a wheel speed sensor needs replaced which I tried to do myself only for the bolt to snap in the knuckle 🫠 so I'm taking it to a shop to get that removed) my main issue is I'm not putting enough money back into savings or investments, im very much living paycheck to paycheck, thiugh honestly its because I need to stop getting food at the local gas station when im at work and make stuff at home to take into work, I just need to learn how to cook then I'll be golden. Anywho, my dream casual car would be a Tesla Model Y long range with FSD. My dream fun car would be a Honda Del Sol, I can't afford either, though, so here I am 🙃