How much less home will I be able to buy if I purchase a new car?

Jane’s new car that cost $31,000 just cut her purchase power by $51,000!

Reduced Purchase Power

Considering that new car will lose 25% of its value as soon as Jane drives it off the lot and will only be worth about 25% of her original sales price in six years when its paid off, it may be better for her to wait until after she has moved into her new home and made a few house payments to decide whether or not she really needs a new car or if she should wait. Instead of purchasing a new car, something a lot of people are increasingly doing (which may also be beneficial to Jane) is leasing a new car and paying for it monthly.

Ricardo Cobos  'the Raleigh Mortgage Guy'

Ricardo Cobos
‘the Raleigh Mortgage Guy’

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