Keep Track of These 3 Numbers Before Buying a Car (2025)

How much you can afford is how much you have in the bank to pay cash for the car

Does paying my car loan in advance hurt my credit?

Thanks for continuing updates and for keeping us financially Educated! Regardless of how bad it gets on the economy, I'd rather trade the crypto market as it's more profitable than holding. I made a Hundred thousand dollars from trading last year even though I barely trade myself.

Just got myself a 2024 GT53 AMG, what is life if you can’t drive around in cool cars😂

Buy it with cash. Buy used cars.

That's not the model X.

The money guys 20/3/8 is a better system

I plan to drive my paid off Jeep Compass for as long as I possibly can! 🤍

Hey humphrey i had a quick question? Of my 401k investments let me know if u do answer any of those questions and what app or place is the best place to ask you thank you.

Uhh, this is too complicated.

I just put money into a UST bond ETF every month until I saved up enough money to buy a car at its full price.

Understand and knowing this rule works and have worked, I’m wondering if these rules and numbers have been adjusted to say 2025 economics

Can you do another video about your Roth IRA portfolio

Bought a house few years ago. Also bought a new car. Will payoff car by spring. Chopped a 6yr car loan in under 2yrs. Didn't want to drag a $630 month car note.

I've saved up enough cash to buy a loaded Camry is my rule. No crazy formula here lol

According to the 35% rule, a person must make more than $135k annually to afford the average new car.
Which is why my paid off 2015 Kia is being well maintained and will be driven another 5–10 years.
I paid $22,000 for it @ $350 a month.

Too many commercials. Can’t even watch a 10 minute video.

I’m from Ukraine and it’s always fun to watch such videos because if we used your suggestions here everyone would be walking(I don’t say there are not valid). And cars are more expensive here than in US(maintenance is cheaper). Also, most of people buys cars with cash

You should calculate your rules based on the net income and not gross income.

Try your hardest to get to the point where you don't have to finance things that depreciate in value.

Just pay cash, have less cash buy lesser car, have more cash still buy a lesser car

Really loving your channel man! Just found you and have been binge watching! 加油！

💳💵💵

🚘👈👪👪

I ride a bicycle 🤑

What if you’re retired and have enough discretionary income to buy a car outright without it affecting you financially. Would that still be ok? Like I’d still have enough to pay bills, go on trips, eat out whenever. I figured I worked so long that I’d like to enjoy a dream car once in my life. I’ve never spent more than 25k on any car I’ve ever owned. 😞

Too many rules or numbers to remember.

What people need to do bed committing to buying a car, is to do a monthly budget, see how a car payment fits in. Things change so does the budget. Keep an eye on the spending - over committing on any major expenses is asking for trouble.

Always love Humphrey! Good info 👍

Here is a better strategy, pay cash for at least a 20 year old white Toyota Corolla where the depreciation has already happened, then fix and maintain the car yourself if there are any problems. Maintenance will be about $100 per year; insurance will be fairly cheap, because you only get liability, and white cars have lower rates; and gas consumption will be pretty decent. Never drive above 60mph and remove the passenger and back seats to make the car lighter and the gas consumption will be even better.💪💪

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Lol this is unrealistic. I have friends who owe newer cars and they make less than 80k plus they pay around 700-800 a month and they’re comfortable

Hey Humphrey, great video! So when you say "monthly car payment" using the 10% rule; Does that mean the loan repayment? So for instance on a $6k monthly gross salary, a $600 a month loan repayment for 60 months is still "within" budget? Thanks!

I will say 10% is probably a safer choice.

Tough to keep below 25% if you live in Singapore and a Honda CRV 1.5L costs US$190,000!

That will mean an annual salary of at least US$800,000

The 25% doesn't work outside of Metropolitan countries unfortunately. Or we'd all be buying 10year old cars in developing countries

So watching this i would be curious to know what the rule would be for active military personnel. As your housing, health insurance, and food are all taken care of for you. (Assuming you are living on post or in the barracks.) Would you still only be allowed 35%?

Good advices - BUT it will also be very important moneywise to figure out what type of car you need, do you really need the big car because you need that space once a year?

2018 Honda CRV Touring $35K cash out the door. 2022 Honda Odyssey Touring $44K OTD. Two pink slips. Saving for a Miata as we speak.

Yeah I'd never do a car loan because of said reasons.

Tucson
32.000
430

This chat is filled with used car salesman telling people to pay cash.

I come from Singapore. A Honda Civic cost USD 130k. No kidding

I'm glad you made this video it reminds me of my transformation from a nobody to good home, $34k monthly and a good daughter full of love

Or, take this from a car guy’s perspective: always pay full in cash and buy the cheapest 12+ years old, not rusty car that was sold in massive numbers when new. In this way you get cheap parts and most mechanics have knowledge of your car. My first car in 2019 was a 2000 Corolla for USD1300, sold at USD 1550. COVID times, weird times. Second car in 2020 was a 2005 Mk5 Golf Gti for USD 3600. Admittedly I did spend 50% more to fix everything up but it then means I get new parts for everything I fixed. Due to government scheme the scrap value at the end was almost USD2900 in Q1 2024. Third car in Q1 2024 is a 2005 E46 320i for USD 2300. Again, money saved goes to getting new replaceable items like lower control arms and suspensions. Enjoying every bit off it now. All these happened in Hong Kong.

Car guys have left the chat 😂

Wish to be applicable into different countries, but no way :|

Starting with just 55k two months ago and reaching 290k today feels incredible. Monica Ronald, your guidance and insights have been instrumental in this journey, and I’m deeply thankful for your support and knowledge.”

Unpopular opinion: I buy a car without monthly payment. I pay it all at once.

Let me know what car you drive, and how much you paid, or monthly payment by leaving a comment!