20 3 8 rule The 20 3 8 method from The Money Guys is a fantastic and practical approach to planning and budgeting for a car purchase Put down at least 20 the more equity you have upfront the better Payoff the car 3 years you pay less interest and will own faster than a 5 year loan
How the 20 3 8 Rule Works With Today s New Car Prices The average price consumers paid for a new vehicle including luxury vehicles in April 2022 was around 47 000 Here s an example of how the 20 3 8 rule works with that purchase price Average new car 47 000 A 20 down payment would be 9 400 leaving you to finance 37 600 You have money coming in you could actually now pay this loan down to a point that the 20 3 8 works for you Or you could figure out how you course correct because maybe your income s high enough that it s less than
20 3 8 rule
20 3 8 rule
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I Broke The 20 3 8 Rule What Are My Options Money Guy
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Is It Okay To Break The 20 3 8 Rule When Buying A Car YouTube
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When is it okay to break the 20 3 8 rule In this highlight Brian and Bo give insight on if it is ever okay to break the 20 3 8 rule Want to know what to do with your next dollar you need this free download the Financial Order of Operations How Strict is the 20 3 8 Rule When Purchasing a Car Take Your Finances to the Next Level Subscribe now youtube c MoneyGuyShow sub confir
0 00 4 02 Why the 20 3 8 Car Buying Rule is so Important to Follow The Money Guy Show 347K subscribers 17K views 2 years ago Why the 20 3 8 Car Buying Rule is so Important to What is the 20 3 8 car buying rule Our 20 3 8 rule includes putting at least 20 down on any car you buy paying it off in 3 years or less and keeping your total car payment s to 8 of your gross income or less Know someone who s in the market for a new car Send them this article
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A Simple Breakdown of the 20 3 8 Car Buying Rule Jump start your journey with our FREE financial resources moneyguy resources Reach your goals f Watch on Why You Should NOT Pay Cash For a Car Share Watch on If you need to purchase a reliable vehicle to get you to work and take care of your family we have a Money Guy 20 3 8 rule of thumb that allows you to take
Steps to apply the 20 3 8 rule Calculate your budget Based on your gross income determine the maximum car price you can afford while adhering to the 20 3 8 rule For instance with a 50 000 annual income aim for a car that doesn t exceed 25 000 to keep monthly payments within the 8 threshold The 20 3 8 car buying rule is a guideline to help you make a financially responsible decision when buying a car Here s the breakdown 20 Down Payment Put down at least 20 of the car s purchase price as a down payment This reduces the loan amount and helps avoid being upside down on your loan owing more than the car s
How To Use The 20 3 8 Rule To Evaluate A Car Purchase Money
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20 3 8 rule - What is the 20 3 8 car buying rule Our 20 3 8 rule includes putting at least 20 down on any car you buy paying it off in 3 years or less and keeping your total car payment s to 8 of your gross income or less Know someone who s in the market for a new car Send them this article