The 1/10th Rule For Car Buying Everyone Must Follow

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The 1/10th rule for car buying is simple; spend no more than 1/10th of your gross yearly income on the purchase price of a car. If you make the median per capita income of ₦30,000,000 a year, limit your car purchase to ₦3,000,000 if you must buy one. Spending too much money on car purchase is one of the easiest and biggest financial mistake someone can make, besides the purchase cost of the car, there are other expenses like maintenance cost, which when you add everything up, I’m pretty sure you’ll be shocked at how much it really costs to own a car. To become car owner no be Moin-Moin

WHY YOU SHOUDN’T SPEND MORE THAN 10% OF YOUR GROSS INCOME ON A CAR

  • Maintenance costs: we’ve got maintenances cost, which covers fueling of the car, regular servicing of the car, and the repairing cost of the car. The thrill of owning a new car last several months but the pain will last for years. The bad roads in Nigeria aid in increasing the maintenance cost of owning a car and also reduces the lifespan of the car.
  • Stress: When you pay more than 1/10th of your yearly income for a car, you will become more stressed. The stress you feel from not wanting to park your car in an unsafe area and the uneasiness you get of other drivers on the road not scratching your car. Though if you purchase the car within 1/10th of your income, you drive and park stress free. Different wahala come with car ownership for Nigeria ranging from the bad road, fraudulent mechanic, break in’s to our friend’s from the other side harassment.
  • Make you want more: The nicer your car, the nicer your other things. You start having thoughts like I’ve got to buy a matching chronometer watch, driving shoes and outfit. Having nice things makes you want to have nice everything! You no go lyk step out of ur new car come look yk say u borrow the car. Base on the fact say u don get new car u go won dey live up to the car owner title by increasing ur lifestyle, u go come dey show ursef for area anyhow.
  • Make you feel stupid: Deep down, you know that if you can’t pay for your car and have enough money left over, you can’t afford the car. Each money you spend on car is a reminder how foolish you’ve been with your money. To be car-owner no be bean o.
  • Opportunity cost: When you buy your car you lose the opportunity of investing your money in assets that will likely grow and pay you dividends in the future. Everybody knows to save early and often to allow for the effects of compounding. Spending much on a car is like negative compounding! Imagine how much money u for don make if u for invest ur car money into other profitable ventures, u for don hammer.

 

 

Recommendations Based On The 1/10th Rue For Car Buying

Gross Income yearly Vehicle Recommendations

       ₦250,000,000+

Lamborghini Huracan, MB S55 AMG, Maserati Quattroporte, Bentley Continental GT, Roll Royce Ghost, Ferrari 125S

₦50,000,000 – ₦250,000,000

Mercedes G63, Audi A8, Porsche 911, Macan, BMW M5, Tesla Mode S, Mercedes Benz S600

₦25,000,000 – ₦50,000,000

BMW M3, Lexus LS, Mercedes S550, Audi S5, Range Rover Sport, Toyota land cruiser, Acura ZDX

₦10,000,000 – ₦25,000,000

Honda accord, Toyota Camry, Hyundai Genesis, ford F Series, Ford Mustang, Toyota Rav4

₦6,000,000 – ₦10,000,000

Honda Civic, Honda pilot, Nisan Altima, Toyota corolla
₦3,000, 000 – ₦6,000,000 Used: Honda Accord, Toyota Camry, Nissan Altima
₦2,500,000 – ₦3,000,000 Used: Hyundai Accent, Honda fit, Toyota corolla
₦500,000 – ₦2,500,000 Pre -2003 Honda civic, Toyota Corolla, Bus

₦0 – ₦500,000

 

Bicycle, Walk, Bus, Keke-Napep, Okada, Catch a ride from a friend

 

If you want to buy an expensive car and the car costs ₦30,000,000, get motivated by the 1/10th rule to figure out a way to earn ₦300,000,00 yearly. One way is to start a side hustle to generate more income on the side. Hustle hard o, no look anybody face. If you can’t get motivated, then fine. Just don’t think you can afford much more, think about your future and the future of your family. A car is simply there to take you from point A and point B. If you’re thinking about prestige and impressing others, don’t. Owning an asset is way more impressive because at least you can potentially make some more money from the asset whereas a car is a liability its value depreciate with time.

One of the worst combos is owning a car that you purchased for much more than 1/10th of gross income and renting a high maintenance house. You now have two of your largest expense sucking money away from you every single month. Think about all the wealthy people you know. Chances are that majority of them own their homes and buy abroad used cars that don’t come close to 50% of their gross income.

If you want to achieve financial independence and not have to worry about material things stressing you out, follow this rule. If you want to detonate your finances and end up working longer than you want for the sake of a nicer ride. Then go spend more than you can afford. Na one life dey for man to live abi?

The 1/10th Rule For Car Buying Everyone Must Follow

A post shared by Amazing Cars (@amazing_cars) on

The 1/10th rule for car buying is simple; spend no more than 1/10th of your gross yearly income on the purchase price of a car. If you make the median per capita income of ₦30,000,000 a year, limit your car purchase to ₦3,000,000 if you must buy one. Spending too much money on car purchase is one of the easiest and biggest financial mistake someone can make, besides the purchase cost of the car, there are other expenses like maintenance cost, which when you add everything up, I’m pretty sure you’ll be shocked at how much it really costs to own a car. To become car owner no be Moin-Moin

WHY YOU SHOUDN’T SPEND MORE THAN 10% OF YOUR GROSS INCOME ON A CAR

  • Maintenance costs: we’ve got maintenances cost, which covers fueling of the car, regular servicing of the car, and the repairing cost of the car. The thrill of owning a new car last several months but the pain will last for years. The bad roads in Nigeria aid in increasing the maintenance cost of owning a car and also reduces the lifespan of the car.
  • Stress: When you pay more than 1/10th of your yearly income for a car, you will become more stressed. The stress you feel from not wanting to park your car in an unsafe area and the uneasiness you get of other drivers on the road not scratching your car. Though if you purchase the car within 1/10th of your income, you drive and park stress free. Different wahala come with car ownership for Nigeria ranging from the bad road, fraudulent mechanic, break in’s to our friend’s from the other side harassment.
  • Make you want more: The nicer your car, the nicer your other things. You start having thoughts like I’ve got to buy a matching chronometer watch, driving shoes and outfit. Having nice things makes you want to have nice everything! You no go lyk step out of ur new car come look yk say u borrow the car. Base on the fact say u don get new car u go won dey live up to the car owner title by increasing ur lifestyle, u go come dey show ursef for area anyhow.
  • Make you feel stupid: Deep down, you know that if you can’t pay for your car and have enough money left over, you can’t afford the car. Each money you spend on car is a reminder how foolish you’ve been with your money. To be car-owner no be bean o.
  • Opportunity cost: When you buy your car you lose the opportunity of investing your money in assets that will likely grow and pay you dividends in the future. Everybody knows to save early and often to allow for the effects of compounding. Spending much on a car is like negative compounding! Imagine how much money u for don make if u for invest ur car money into other profitable ventures, u for don hammer.

 

 

Recommendations Based On The 1/10th Rue For Car Buying

Gross Income yearly Vehicle Recommendations

       ₦250,000,000+

Lamborghini Huracan, MB S55 AMG, Maserati Quattroporte, Bentley Continental GT, Roll Royce Ghost, Ferrari 125S

₦50,000,000 – ₦250,000,000

Mercedes G63, Audi A8, Porsche 911, Macan, BMW M5, Tesla Mode S, Mercedes Benz S600

₦25,000,000 – ₦50,000,000

BMW M3, Lexus LS, Mercedes S550, Audi S5, Range Rover Sport, Toyota land cruiser, Acura ZDX

₦10,000,000 – ₦25,000,000

Honda accord, Toyota Camry, Hyundai Genesis, ford F Series, Ford Mustang, Toyota Rav4

₦6,000,000 – ₦10,000,000

Honda Civic, Honda pilot, Nisan Altima, Toyota corolla
₦3,000, 000 – ₦6,000,000 Used: Honda Accord, Toyota Camry, Nissan Altima
₦2,500,000 – ₦3,000,000 Used: Hyundai Accent, Honda fit, Toyota corolla
₦500,000 – ₦2,500,000 Pre -2003 Honda civic, Toyota Corolla, Bus

₦0 – ₦500,000

 

Bicycle, Walk, Bus, Keke-Napep, Okada, Catch a ride from a friend

 

If you want to buy an expensive car and the car costs ₦30,000,000, get motivated by the 1/10th rule to figure out a way to earn ₦300,000,00 yearly. One way is to start a side hustle to generate more income on the side. Hustle hard o, no look anybody face. If you can’t get motivated, then fine. Just don’t think you can afford much more, think about your future and the future of your family. A car is simply there to take you from point A and point B. If you’re thinking about prestige and impressing others, don’t. Owning an asset is way more impressive because at least you can potentially make some more money from the asset whereas a car is a liability its value depreciate with time.

One of the worst combos is owning a car that you purchased for much more than 1/10th of gross income and renting a high maintenance house. You now have two of your largest expense sucking money away from you every single month. Think about all the wealthy people you know. Chances are that majority of them own their homes and buy abroad used cars that don’t come close to 50% of their gross income.

If you want to achieve financial independence and not have to worry about material things stressing you out, follow this rule. If you want to detonate your finances and end up working longer than you want for the sake of a nicer ride. Then go spend more than you can afford. Na one life dey for man to live abi?