Between the payment, insurance, and gas, the SUV would eat 25% of his take-home pay.
Two years later, Leo pulled up to a trailhead in his silver sedan. His friend pulled up next to him in a flashy truck—the kind Leo almost bought. His friend looked exhausted, complaining about working overtime just to cover the "beast's" insurance. buying a car based on income
The dealer offered an 84-month loan. Seven years? He’d be thirty before he owned the car. Between the payment, insurance, and gas, the SUV
The payment was $300. He could do a four-year loan. He could still afford weekend trips, concert tickets, and his savings account wouldn't stay at zero. He’d be thirty before he owned the car
(who sounded suspiciously like his frugal Uncle Pete) countered, "Leo, you make $55,000 a year. After taxes and rent, that $700 is half your 'fun money.' One flat tire and you're cooked."