How Much Car Can You Afford? (#1 Rule to Know)

How much car can I afford is a question many car buyers Google before making their next vehicle purchase. In this video I teach you the most you can afford to pay for your next vehicle.

More car buyers than ever are trading in vehicles that are worth less than they owe on the loan. This means they've purchased a car they can't afford, they're under water, and they're bringing negative equity with them to their next deal.

There's one simple way to stop this from happening.

This topic is covered in more detail at:

I recommend the following videos to best negotiate your next vehicle purchase.

#notwaitingtolive #howtonegotiateacardeal #caraffordability

[czluver]

My last purchase was a 2018 Honda Accord Sport that was paid off in 1 1/2 years. Nice having the security knowing it's paid off during this difficult time.

[justin]

It's better to buy a beater, get out of debt, then save and write a check for your next vehicle. Dont tell the dealership you're paying cash if u want. Get a loan and pay it off the very first payment if u want. A wise person saves for a purchase. The borrower is slave to the lender. And if you are buying a Benz, you should have a substantial income since they are very expensive to maintain and/or repair. They depreciate rapidly also.

[canttReid]

Dude. Seriously, thank you for this video. Im buying a car tomorrow and I’m doing it right thanks to you. Subscribing and liking the vids is the least I can do

[ahedges]

Just wanted to say thanks for posting these videos.

[shishamylov]

great video, i like the different way you look at this problem

[jeffburtonnottheracecardriver]

You are awesome. Smart. A rare breed giving seldom heard wise advice.

[dogsplantscarsneatstuff]

I so appreciate your use of tables and graphs to show people how to live within their means. Did you have any customers that kept their cars for 12 or more years. Over the course of 24 years a person could have "skipped" a car purchase and saved $30000 (double or triple that for a Mercedes or BMW). The experience you had walking that trail is worth much more than any luxury car but your frugalness enabled you to do that. Thanks for the video

[KENFEDOR]

Very informative video!
After a five decades under my belt, I've learned the hard way the timeless wisdom of DELAYED GRATIFICATION. Costly sports cars in my 20's were stupid decisions (albeit fun)! Now, i have a 20 year old Mercedes (already well depreciated by the previous owner, thank you), a 34 year old Jeep CJ summer-only toy and a 6 year old SUV for hauling the kids around. Save your money, build your credit score, earn an APR less than what your money can earn in stocks and remove any emotion from that hunk of metal that is a vehicle.
When buying a car/truck, be in NO HURRY whatsoever. Negotiate the best out the door price, then demand the most competitive interest rate. Don't perpetuate debt in a depreciating hunk of metal.
It's easy to take the dealer's offered monthly payment to calculate the total interest cost over the life of the loan. Compare different down payments to see if shelling out an additional 5% of the price is worth saving X over the duration of the loan. Look at it as a math problem and remove emotion attachment from the specific vehicle.

[MrMikey]

I commented on some of your other videos. I'm looking to break the 20/4/10 rule some. My plan is to leverage a new Tacoma purchase. I been holding out very well since I could go in any day and they would finance. I definitely need a vehicle where I live it's not an option. I been waiting till I have over 12k to put down which is probably more than 20%. I will private sell my 14 year old vehicle. I don't think it's unreasonable for me having no other debt except my house to finance it for 60 months. I plan to keep it 10 years and kept cars that long before. I have great credit and will get a good loan rate. This should get me a loan I can very easily pay and pay more on sometimes. The Tacoma is a good vehicle with high resale value so I should not have value issues if it gets wreaked or I decide to trade.

[mrpricklypear]

@not waiting to live, good illustration. I appreciate the graphics as one can not only hear the info, but clearly see your point. In addition, the content is solid. I found the worst and especially the best depreciating vehicles to finance regarding depreciation eye opening.👀

[deceivinglooks]

I have a question I'm hoping you can answer. I'm looking to buy a used 2017 Toyota highlander. They are priced in several different areas at around 29, xxx-31, xxx. I have 20, 000 that i can comfortably pay up front. Is this an odd amount? Is it too much or too little? I have no idea what I'm doing

[tonial]

20 4 10 rule means 90% of cars in USA should be Nissan versa or cheaper. most people don't have much money

[ivancespedes]

So with these low rates...if I buy a tacoma...should I extend the loan over 4 years?

[ahmedbayoumi]

1.5 % interest rate for 4 years with a 35% down payment for a Jetta . Is that a good deal?

[brokeduece]

To get the best deal, you must buy a car you cannot afford... Car dealership thinks they are making $$ off me, thats until i get to the finance department.. They have to lower the Apr plus the car price to get me approve. Finance guys hate me, i can barely afford the monthly payment let alone all their nonsense addons

[joserivera]

Most cars yes, but it also matters what car you buy, some cars don’t lose value.

[christophershanklin]

Finance something cheap, reliable, and in a timely fashion.I would say pay it off inside 3 years

[dhsjohn]

Just a selfie video from the millennials.

[dhsjohn]

This is dumb. This is grade school stuff. Any ADULT already knows this elementary stuff.