[00:01] Honda CRV, one of the best-selling SUVs in America? This one starts at $30,920. In the past, we would use the 24/10 rule to figure that out. That's where you put a 20% down payment on a car, finance the car for no more than 4 years, and you
[00:16] can't spend more than 10% of your gross monthly income on total car expenses. these days because if you finance that amount over 4 years, your total payment is 575 a month, but if we finance it over 5 years or 60 months, then our
[00:31] estimated total monthly payment is 472, and that's more reasonable. Using the edmunds.com true cost to own calculator, we actually find out that the Honda CRV insurance and maintenance cost per month are roughly $205 per month. This is our
[00:43] multiply this by 10 to get our monthly income needed, then multiply this by 12 to get our annual salary needed. So, to comfortably afford a Honda CRV using the 25/10 rule, we need to make an annual salary of around $81,240.
[00:59] $93,600 to comfortably afford this car. So, what are your thoughts? Was this more or less than you expected?