ACCOUNTANT EXPLAINS: How much car can you REALLY afford (By Salary)

"25 to 35 approach: the lower end the 25 of your free tax annual salary so your gross income that should be your target for a car purchase on the other hand if buying a car sits high up in your priorities and you're willing to trim down on other expenses to accommodate this then you may be able to push that budget up to 35 of your annual income"

"20 stands for the down payment you should be making on your car... the four represents the term of the car loan so simply put you should aim to pay off your car loan in no more than four years I.E 48 months and then finally the 10 is the portion of your total monthly income that should be allocated to car expenses so this includes not only your monthly car payment but also things like your maintenance and your insurance"

"I ran the numbers and found that getting a taxi or an Uber whenever I needed a car turned out to be more cost efficient than the cost associated with leasing with financing with buying a car right and the costs of fuel Insurance maintenance Etc"

"buy a second-hand car outright using what you would have spent on a down payment for a new car... yes the car you get for five thousand dollars might not be anything special or the latest model in anything but remember this is about understanding the trade-offs and the benefits of delayed gratification"

"by the end of year four you would have saved up enough to potentially afford to buy a 23 000 car outright in cash after four years again eliminating the need for any financing"