🚗Transportation is necessary for most people, but it can be a financial burden if not managed properly.
💰Many people have to borrow money to buy a car, resulting in interest payments and debt.
👥Car ownership comes with additional costs such as maintenance, insurance, and fuel.
🚘The value of a car depreciates over time, making it a depreciating asset.
🏭Luxury cars can come with higher maintenance and insurance costs.
What is the 23/8 rule for buying a car?
—The 23/8 rule suggests putting 20% down, financing for no more than 3 years, and ensuring monthly payments are no more than 8% of your gross income.
Should I buy a new car or a used car?
—Buying a used car between 4 to 6 years old can save you money as it has already experienced significant depreciation.
What if I can't afford my current car payment?
—If you can't afford your current car payment, you have two options: either increase your income or consider selling your car and getting a more affordable one.
Is it better to pay in cash or finance a car?
—If you can pay in cash, it is generally better as you avoid interest payments. However, financing may be necessary for some individuals.
How can I minimize the total cost of car ownership?
—To minimize the total cost of car ownership, consider factors such as depreciation, maintenance costs, insurance rates, and fuel efficiency.
00:00Introduction: Learn how to buy a car the right way and avoid financial burdens.
02:39Transportation is necessary for most people, but it can be a financial burden if not managed properly.
05:36Many people have to borrow money to buy a car, resulting in interest payments and debt.
09:59Car ownership comes with additional costs such as maintenance, insurance, and fuel.
14:58The value of a car depreciates over time, making it a depreciating asset.
19:19Luxury cars can come with higher maintenance and insurance costs.
24:36The 23/8 rule suggests putting 20% down, financing for no more than 3 years, and ensuring monthly payments are no more than 8% of your gross income.
28:02Buying a used car between 4 to 6 years old can save you money as it has already experienced significant depreciation.
31:12If you can't afford your current car payment, you have two options: either increase your income or consider selling your car and getting a more affordable one.
33:39If you can pay in cash, it is generally better as you avoid interest payments. However, financing may be necessary for some individuals.
34:59To minimize the total cost of car ownership, consider factors such as depreciation, maintenance costs, insurance rates, and fuel efficiency.
