Latest news with #dealers
Yahoo
2 days ago
- Automotive
- Yahoo
Humphrey Yang Reveals How To Calculate How Much Car You Can Afford With The 20-4-10 Rule
How much car can you afford? Many people wrestle with this question, but financial personality Humphrey Yang recently broke it down to a simple formula. Knowing how much you can truly afford can help you avoid an expensive vehicle that ends up being more trouble than it's worth. The 20-4-10 rule has three components, and each of them influences how much you can spend on a car. Yang broke it down in a recent video while outlining practical strategies to keep your transportation costs low. Dissecting The 20-4-10 Rule Each number in the formula plays a key role. Yang believes you should put 20% down, finance a car for no more than four years, and ensure that your monthly car payments do not exceed 10% of your gross monthly income. Don't Miss: —with up to 120% bonus shares—before this Uber-style disruption hits the public markets Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Many dealers and lenders give you the option to put no money down, but you can get stuck with a car that eats up too much of your budget. Furthermore, if you don't put any money down, you will pay a lot more interest over the long run. The first two metrics are straightforward, but Yang also includes insurance and maintenance in the monthly payments. If you have a $750 monthly auto loan payment, but you also spend $200 per month on insurance and maintenance, your monthly car payment is really $950. Yang uses this number to calculate that you should gross $9,500 per month if you want to incur a $950 monthly car payment, including insurance and maintenance. Car Payments Are One Of Your Biggest Expenses Yang's calculator results in a monthly car payment that reaches 10% of your gross monthly income. Some people put a higher percentage of their income toward their vehicle, especially for luxury models. Trending: This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation — Not taking this decision seriously can result in unnecessary financial hardship. A car is the second-most expensive purchase you will likely make, outside of buying or renting a house. That's why it is extra important to run the numbers and strictly follow a framework like the 20-4-10 rule. When most people think of cutting their expenses, they think of ditching their daily coffee habit. While removing any cost will benefit your finances, Yang suggests focusing on the big-ticket items like a house and a car. If you're overpaying for your house and car, then skipping Starbucks won't have much of an impact on your finances. How To Reduce Transportation Costs Yang wrapped up the video by summarizing some of the ways you can reduce your transportation costs. Cutting these expenses will help you save a lot of money. You can use that extra money to grow your portfolio faster, go on an extra vacation, or give yourself peace of mind with a six-month emergency mentioned buying a used car, using public transit, carpooling, and riding a bike as some of the ways to reduce your transportation costs. Some old models still have a lot of life in them, and it's even possible to find an old model that's more reliable than a new car. Using public transportation, carpooling, or riding a bike from time to time can help you save money on parking costs. These are frugal decisions that can protect your wealth. Being frugal and aggressively investing money now can set you up for a robust financial future. Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Humphrey Yang Reveals How To Calculate How Much Car You Can Afford With The 20-4-10 Rule originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
3 days ago
- Automotive
- Yahoo
Mitsubishi Mirage Bows Out With Shockingly Low Prices
Mitsubishi Mirage Bows Out With Shockingly Low Prices originally appeared on Autoblog. Mitsubishi Mirage Is Leaving America With Dirt-Cheap Pricing The Mitsubishi Mirage has held the title of America's cheapest new car for years, but its reign is almost over. Mitsubishi confirmed last year that production of the Mirage, both the hatchback and the G4 sedan, would end by late 2024, with no 2025 model coming to US showrooms. That alone is a major shift for the budget car segment. Dealers still sell the humble nameplate, with a base MSRP of $16,695 for the hatch and $17,795 for the sedan, undercutting everyone. But there's a bigger twist: dealers are slashing prices even further. Right now, the cheapest new car in America is not just affordable – it's shockingly cheap. View the 2 images of this gallery on the original article Dealers Are Letting the Mirage Go for Less Than Used Car Money A quick scan through listings on reveals just how steep the discounts have become. Some new Mirage hatchbacks are being listed for under $12,000 – brand-new, with full factory warranty and delivery mileage. Even the Mirage G4 sedan, which traditionally had a slightly higher MSRP, is showing deep discounts across the board. Listings with $3,000 to $5,000 off MSRP are common, and some sedans are going for below $13,000, making them cheaper than many used Honda Civics or Toyota Corollas from five years ago. While these fire-sale prices vary depending on location and dealer strategy, it's clear that Mitsubishi's final batches of Mirages are being moved quickly and aggressively. For someone looking for basic, reliable transportation on a tight budget, this is the best time to get one. View the 2 images of this gallery on the original article The End of Sub-$20K Cars Is Near Once the Mirage disappears from showrooms, which is expected as soon as inventories dry up. There will be just one car left under the $20,000 mark: the Nissan Versa. But even that title is slipping. Due to new US tariffs affecting vehicles built in Mexico (where the Versa is assembled), Nissan is ending the manual transmission version and raising base prices. Current 2025 models with CVT already flirt with the $20K line, and that's before further pricing updates or inflation. With the Mirage gone and the Versa climbing in price, the era of the sub-$20,000 new car in America is effectively ending. What replaces it are entry-level models in the low $20K range – better equipped, but notably more expensive. For the absolute lowest cost of entry into new car ownership, the Mirage's final stretch may be your last real chance. Mitsubishi Mirage Bows Out With Shockingly Low Prices first appeared on Autoblog on Jul 20, 2025 This story was originally reported by Autoblog on Jul 20, 2025, where it first appeared.
News.com.au
3 days ago
- Automotive
- News.com.au
Toyota to recall 70,000 Camry, Corolla, RAV4 vehicles over display screen error
Almost 70,000 Toyota vehicles sold in Australia will be urgently recalled over a potential fault, including thousands of popular sedans, hatchbacks, and SUVs. Toyota Australia on Tuesday announced it would initiate a recall of about 69,586 vehicles sold in Australia between July 2022 and April 2025. Not all vehicles sold during the time range are impacted, but include Corolla and Camry hybrids, the Kluger Hybrid, and the RAV4 Hybrid. The notice stated the vehicles may be impacted by a fault with a 12.3-inch display on the instrument panel, which showy as blank when the vehicle is started. 'Driving without speedometer and any warning may result in an increased risk of an accident in certain driving conditions,' the recall notice stated. The display would usually show combination metre system information, including warning and indicator lights, vehicles gauges, and messages. Affected vehicles will require an update to the programming, which was improperly repeatedly writing unnecessary data to the memory of the metre. As such, the metre would deteriorate earlier then expected, according to the recall notice, and would take between one to 2.5 hours to be fixed. Owners of affected vehicles were told they could 'continue to drive your car' while awaiting the fix, and to contact a dealer or a recall hotline if the error occurred. The full list of affected vehicles ins available on the Toyota website, including: C-HR Hybrid, Camry Hybrid, Corolla Hatch Hybrid, Corolla Sedan Hybrid, Corolla Hatch petrol, Corolla Sedan petrol, Corolla Cross Hybrid, Corolla Cross petrol, GR Yaris, GR Corolla, Kluger petrol, Kluger Hybrid, RAV4 petrol, and RAV4 Hybrid.
The Independent
7 days ago
- Automotive
- The Independent
Urgent vehicle recall issued by Ford amid fire risk
Ford Motor is recalling approximately 700,000 vehicles, specifically certain Bronco Sport (2021-2024) and Escape (2020-2022) models. The recall addresses a fuel leak risk from cracked fuel injectors that could lead to a fire within the engine compartment. Ford dealers will provide a free interim software upgrade to detect cracked injectors and reduce fire risk, with a permanent solution currently under development. No injuries have been reported in connection with this recall, according to the National Highway Traffic Safety Administration. Ford anticipates a $750 million financial impact in its second quarter due to this recall, adding to its numerous recalls this year, which exceed those of any other carmaker.
Forbes
7 days ago
- Automotive
- Forbes
Sub-$20K Used Cars Are Becoming A Vanishing Breed, Study Shows
Pre-owned rides at affordable prices are becoming difficult to find, leaving cash-strapped buyers in ... More a bind. It's a familiar rite of passage for a freshly-licensed teen to buy (or be given) an inexpensive used model as his or her first car. Unfortunately for those coming of age these days, good-quality used cars priced at under $20,000 are becoming increasingly rare commodities. Affordability issues in the auto business can be traced to the pandemic era, when factory shutdowns and supply chain shortages caused a shortage of new vehicles on dealers' lots which, in turn, sent shoppers to the pre-owned end of the lot. The added demand combined with limited supplies because of fewer trade-ins caused the prices of used cars to skyrocket. Prices have somewhat stabilized of late, but with new-vehicle transaction prices now averaging $48,907 (according to Kelley Blue Book), a significant number of shoppers are still turning to older cars out of financial necessity, but are finding few bargains. In fact, a recent study of over 2.6 million 3-year-old used cars conducted by the online vehicle marketplace shows that while sub-$20,000 models made up more than half of the market in 2019, in 2025 they account for just 11.5%. Prices have trended upward to the extent that the $20,000 to $30,000 segment now accounts for 43% of the late-model market. The average three-year-old used car now goes for a whopping $32,645, according to the website, which represents a $9,476 increase since COVID-19 first struck. While in 2019 42% of used Honda CR-V and Toyota RAV4 compact SUVs on the market cost less than $20,000, the website's statisticians say that number today is practically zero. It's the same story with pre-owned versions of popular models that include the Chevrolet Equinox, Honda Civic, Kia Sportage, Nissan Rogue, Toyota Camry, and Toyota Corolla. And with the average vehicle ownership period reportedly reaching eight years, according to the insurance site there's a dearth of older 'beater' cars on the market to accommodate cash-strapped shoppers. 'The pandemic may be a fading memory, but the lack of new car production five years ago has created a 'pandemic hangover' effect for today's used car market,' says iSeeCars Executive Analyst Karl Brauer. 'Many car buyers are now priced out of late-model used cars, forcing them to consider older models with more miles to fit within their budget.' Just as the numbers of new sedans in dealers' showrooms have dwindled in recent years, prices of pre-owned passenger-cars have been skyrocketing. In 2019 models like the Honda Civic and Accord and the Toyota Camry and Corolla – all of which remain in production – accounted for 70% of three-year old used-vehicle market, but data shows it's dropped to 28.1%. That's a 60.2% dip. Average prices in this segment have jumped from $19,734 in 2019 to $29,343 in 2025, which can at least in part be attributed to fewer new cars on the market in recent years With regard to other model segments, the number of three-year-old SUVs going for under $20,000 dropped from 39.2% to a mere 8.1% since 2019, iSeeCars says, and the average transaction price has gone from $31,649 to $36,509. Added new-SUV sales and a greater number of subsequent trade-ins could be one reason the price jump is tempered somewhat. Used late-model truck prices split the difference with a 28.8% boost since 2019, going from an average $21,627 to $40,731. According to iSeeCars the U.S. cities in which the lowest percentage of three-year-old used vehicles still sell for under-$20,000 are Boston, MA (6.5%), Minneapolis-St. Paul, MN (6.7%), Hartford, CT (8.9%), Austin, TX (8.5%) and Philadelphia, PA (9.0%). Used Cars, Trucks and SUVs With The Steepest Price Increases These are the 15 most-popular three-year-old pre-owned vehicles iSeeCars' study determined have experienced the heftiest average price boosts since 2019: Source: you can read the full report here.
