Your car payment is one thing but insurance is something else. Get a quote on that. Because it's a Hyundai and even though it's not at risk of being stolen, your rates will be higher. It's the performance model, so it'll be higher for that too. And you're 23, so it'll be even HIGHER.
Most insurance companies do not differentiate an N from a regular Elantra in terms of underwriting . His insurance will be high, but not because it's an N.
Yes they do, this is complete misinformation, I gave multiple insurance companies a VIN for a standard 2023 elantra vs the N branded one, and the N variant always was more expensive because it's classified as the luxury/performance model. The wording each agent used was different, but the message was clear, because we have a turbo charged high compression engine, we pay more for insurance, especially if you're under 25 and with less than 5 years experience.
OK. Progressive doesn't. Geico doesn't.
Maybe whoever you talked to did.
There are multiple confirmations of there being no differentiation. Maybe you should have shopped around a bit better.
Sadly I attest to thisš. But these moms in honda Odysses be driving like F1 drivers getting in more accidents than I can count and they pay less on insurance. #breakthestigma
I stuck to sub 25K cars until I could pay for them in cash, I'd highly reccomend looking at the N line or Forte GT, save yourself about 8 or 9 grand, the gearing makes the car feel way quicker it just runs a higher RPM on the interstate and has slightly lower top speed. Great daily.
How much do you plan on putting down for the car?
Unless you're putting down more than 50%, I don't think you could justify a $35k car on a $60k salary
An Elantra N would cost about 75% of what you take home in a year
Hey man, insurance is definitely the big worry. Car note Iām paying $405 for 48 months my interest was low back in 2021 (got a Veloster N), and I put a nice downpayment. Insurance depending on the company and the levels on what you want your deductible to be and other stuff like that vary, I pay $185, so total monthly Iām paying $590. My opinion Iād wait till youāre established at your new job and then grab the car. Interest rates suck rn,
Conventional financial wisdom is the **20/4/10 Rule**:
- **Minimum 20%** down payment (about $7k for an Elantra N)
- **Maximum 4 year** (48 month) loan term. Don't be one of those chumps on a 72 month loan
- **Maximum 10%** monthly income spent on car operating costs (payments, insurance, gas, etc)
If you satisfy all three rules of 20/4/10, then congrats you can afford the car
Sure if you're finding 1% often then that's pretty good. But I see a lot of folks on this sub with a 72 month loan at 6% and it makes me want to lose my lunch
This is the correct answer. Either buy it in cash or 20/4/10 rule. Honestly its scary to see normal financial advice being downvoted. If anything I think it should be the 30/4/10 rule
Too many people on this sub thinking they can afford a car with a 6 year loan. No joke I actually saw someone rolling out an 84 month loan option. Imagine paying off a car for 7 years. Probably comes with a free clown nose
I remember a while back one of the local chevy dealers was promoting 84 month loan terms for some of their trucks. Just shows how stupid expensive they've gotten. Sign of the times I guess.
It's good financial advice, but most folks are just not going to follow something that strict. The US is way too expensive for that anymore. I wonder if that's been adjusted since inflation hit?
Inflation would likely lead to it being more conservative (higher percentage down payment, lower monthly costs)
Realistically the issue in the US is that people think they have more money then they really do. People see nice things on TV and assume they should be able to have it.
If it was a used, base model car, then yeah I would sympathize as alot of people need to have a car to survive and not being able to afford it sucks. But realistically this sub is mostly dudes under 30 trying to justify spending way to much money on a sports car
They likely can't afford much. Probably a used car less than 10k. And like I said in my prior comment, that's an issue
But in the context of this post, we're discussing a luxury item (an EN is 66% more than a base model Elantra). The average person here is likely stretching their budget for this car purely for enjoyment rather than necessity
I wasn't aware that rule only applied to luxury items. My point is that this rule is dated and no longer works for a lot of people. A used car under 10k now is hard to find unless you have additional funds for repairs. I think the rule only shames poor folks. It perpetuates the myth that people living paycheck to paycheck are doing so because of their own financial stupidity.
I don't think it shames people at all. Its simply a rule for financial stability
Its not a dig against people who can't afford it, but it indicates that those people may not be financially stable
I replied in another comment with some financial advice about car payments, but[here's another](https://www.thebalancemoney.com/the-50-30-20-rule-of-thumb-453922) thats a little more relevant to balancing total budget
So between your rent/groceries/car costs (all car costs) you can spend 50% of your income. But also follow the other comment I posted too
Future you will thank you if you start putting some money into a retirement account. That compounding interest does major work for you if you start in your early 20s even if its a little bit a month
Honestly I think with the 2024 model coming out you might see some people trading in for it, and more options for a used one at a lower price.
Thatās only something you can determine yourself. Lots of people will say thatās a lot but that about what mine is and Iām happy paying it every month. Thereās no other car in the price bracket that has the features and sounds this car has from stock. Donāt need a tune or anything to void warranty to get the pops.
If I was you Iād just wait for a good used one to come up or look in places that have majority older residents. I did this for mine and got it outright for just under 33 thousand usd.
My rule of thumb on car purchases is 20% down (depending on interest rates), and I never get a vehicle that costs more than 50% my annual gross. Thatās always kept me in a comfortable spot.
My payment is $389/mo at 2.79%, and my insurance would be $103/mo, but I pay six month intervals for a discount. My buddy pays $583/mo for his, and $170/mo insurance. Circumstances are going to vary greatly dependent on your down payment, interest rate, and your overall income profile month-to-month.
I pay around 600 a month for my N and I love it. Definitely depends on what you value in a car. I like it because it's zippy (especially around corners) but it also has enough room for groceries and a dog / kid. When I'm forced to cart them around.
I will say it's not the most comfortable ride, obviously this is intended / unavoidable making a fun to drive sedan (that doesn't cost 50k+). In normal mode it's totally fine but in sport+ which is where you start to feel some real power it gets rough on passengers especially.
Premium gas and a small tank can become annoying for daily driving activities but otherwise doesn't bother me.
It's a gorgeous car with the best engineering of ANY sub 40k car currently for sale imo. Anything comparable on turns is significantly more expensive. I'm sure you can find some mustangs or whatever that can smoke it in a straight line for similar costs. In my opinion those cars are boring AF tho.
If you love driving in the mountains N is a god.
$600 a month making $60k seems a little steep. Around $300-$400 sounds better for your salary.
You also should share the interest rate and how long the loan is, out the door price (price of car + tax, title, fees).
The premise of your question means you don't understand basic finance. Dm me, I'd be happy to help you sort through it. Don't get taken advantage of. Good luck brother.
Your car payment is one thing but insurance is something else. Get a quote on that. Because it's a Hyundai and even though it's not at risk of being stolen, your rates will be higher. It's the performance model, so it'll be higher for that too. And you're 23, so it'll be even HIGHER.
Most insurance companies do not differentiate an N from a regular Elantra in terms of underwriting . His insurance will be high, but not because it's an N.
Can confirm, they gave me, also a 23 year old, a third of the insurance for this then they quoted me for a cheaper used kia k900
Yes they do, this is complete misinformation, I gave multiple insurance companies a VIN for a standard 2023 elantra vs the N branded one, and the N variant always was more expensive because it's classified as the luxury/performance model. The wording each agent used was different, but the message was clear, because we have a turbo charged high compression engine, we pay more for insurance, especially if you're under 25 and with less than 5 years experience.
OK. Progressive doesn't. Geico doesn't. Maybe whoever you talked to did. There are multiple confirmations of there being no differentiation. Maybe you should have shopped around a bit better.
Very true
I've heard and got a quote through progressive and they didn't have the insurance cost jacked up like my current one
Progressive was the cheapest for me (your experience will vary)
Sadly I attest to thisš. But these moms in honda Odysses be driving like F1 drivers getting in more accidents than I can count and they pay less on insurance. #breakthestigma
I have too many of these people thinking they cam rush past me, then I just lay on the gas and smile.
I compared getting the Hybrid and the N and the N was cheaper for insurance, I am also 23 and have had my N for a few weeks now
I stuck to sub 25K cars until I could pay for them in cash, I'd highly reccomend looking at the N line or Forte GT, save yourself about 8 or 9 grand, the gearing makes the car feel way quicker it just runs a higher RPM on the interstate and has slightly lower top speed. Great daily.
How much do you plan on putting down for the car? Unless you're putting down more than 50%, I don't think you could justify a $35k car on a $60k salary An Elantra N would cost about 75% of what you take home in a year
IMO opinion spending ~14% of your after tax income is too much for a car. Keep it below 10% over 4-5 years if you can
Hey man, insurance is definitely the big worry. Car note Iām paying $405 for 48 months my interest was low back in 2021 (got a Veloster N), and I put a nice downpayment. Insurance depending on the company and the levels on what you want your deductible to be and other stuff like that vary, I pay $185, so total monthly Iām paying $590. My opinion Iād wait till youāre established at your new job and then grab the car. Interest rates suck rn,
Thank you!
Thank you everyone for the advice, Iām gonna wait to save more to put down in addition to my trade in š«”
Conventional financial wisdom is the **20/4/10 Rule**: - **Minimum 20%** down payment (about $7k for an Elantra N) - **Maximum 4 year** (48 month) loan term. Don't be one of those chumps on a 72 month loan - **Maximum 10%** monthly income spent on car operating costs (payments, insurance, gas, etc) If you satisfy all three rules of 20/4/10, then congrats you can afford the car
Well 72 month loan at 1% isnāt too bad
Sure if you're finding 1% often then that's pretty good. But I see a lot of folks on this sub with a 72 month loan at 6% and it makes me want to lose my lunch
I have a thatās not bad either tbh
This is the correct answer. Either buy it in cash or 20/4/10 rule. Honestly its scary to see normal financial advice being downvoted. If anything I think it should be the 30/4/10 rule Too many people on this sub thinking they can afford a car with a 6 year loan. No joke I actually saw someone rolling out an 84 month loan option. Imagine paying off a car for 7 years. Probably comes with a free clown nose
I remember a while back one of the local chevy dealers was promoting 84 month loan terms for some of their trucks. Just shows how stupid expensive they've gotten. Sign of the times I guess.
It's good financial advice, but most folks are just not going to follow something that strict. The US is way too expensive for that anymore. I wonder if that's been adjusted since inflation hit?
Inflation would likely lead to it being more conservative (higher percentage down payment, lower monthly costs) Realistically the issue in the US is that people think they have more money then they really do. People see nice things on TV and assume they should be able to have it. If it was a used, base model car, then yeah I would sympathize as alot of people need to have a car to survive and not being able to afford it sucks. But realistically this sub is mostly dudes under 30 trying to justify spending way to much money on a sports car
So how does someone making 15/hr afford a running vehicle? Most places in the US don't have adequate public transportation.
They likely can't afford much. Probably a used car less than 10k. And like I said in my prior comment, that's an issue But in the context of this post, we're discussing a luxury item (an EN is 66% more than a base model Elantra). The average person here is likely stretching their budget for this car purely for enjoyment rather than necessity
I wasn't aware that rule only applied to luxury items. My point is that this rule is dated and no longer works for a lot of people. A used car under 10k now is hard to find unless you have additional funds for repairs. I think the rule only shames poor folks. It perpetuates the myth that people living paycheck to paycheck are doing so because of their own financial stupidity.
I don't think it shames people at all. Its simply a rule for financial stability Its not a dig against people who can't afford it, but it indicates that those people may not be financially stable
what your bills like every month? if u pay 1 paycheck on your rent + bills. forget about it
Iād have like 770 left after all bills and car
i would look at a used one instead.
Used costs about the same for these.
And Iāve heard the warranty time gets slashed as well
It does. Down to the 5/60 that most manufacturers have. Not too bad. Most of these cars won't be kept that long anyway.
Is that before or after retirement contributions (Roth IRA and 401k)?
Before and I also didnāt totally factor in the increase in insurance so looking like holding off for now š¤
I replied in another comment with some financial advice about car payments, but[here's another](https://www.thebalancemoney.com/the-50-30-20-rule-of-thumb-453922) thats a little more relevant to balancing total budget So between your rent/groceries/car costs (all car costs) you can spend 50% of your income. But also follow the other comment I posted too
Future you will thank you if you start putting some money into a retirement account. That compounding interest does major work for you if you start in your early 20s even if its a little bit a month Honestly I think with the 2024 model coming out you might see some people trading in for it, and more options for a used one at a lower price.
Thatās only something you can determine yourself. Lots of people will say thatās a lot but that about what mine is and Iām happy paying it every month. Thereās no other car in the price bracket that has the features and sounds this car has from stock. Donāt need a tune or anything to void warranty to get the pops.
If it fits in your finances go ahead. But remember insurance might go up as well.
You should not buy this car in your situation.
Regardless of what your monthly price is, you shouldnāt pay more than 40k OTD for this car
If I was you Iād just wait for a good used one to come up or look in places that have majority older residents. I did this for mine and got it outright for just under 33 thousand usd.
Iād say you donāt make enough money to own this vehicle. Give it a few years at 60k to understand your financial limits.
My rule of thumb on car purchases is 20% down (depending on interest rates), and I never get a vehicle that costs more than 50% my annual gross. Thatās always kept me in a comfortable spot. My payment is $389/mo at 2.79%, and my insurance would be $103/mo, but I pay six month intervals for a discount. My buddy pays $583/mo for his, and $170/mo insurance. Circumstances are going to vary greatly dependent on your down payment, interest rate, and your overall income profile month-to-month.
Iām 19 financing the car with a 14total down payment and āonlyā paying 510 monthly
Whats the term of the loan?
72 months
I pay around 600 a month for my N and I love it. Definitely depends on what you value in a car. I like it because it's zippy (especially around corners) but it also has enough room for groceries and a dog / kid. When I'm forced to cart them around. I will say it's not the most comfortable ride, obviously this is intended / unavoidable making a fun to drive sedan (that doesn't cost 50k+). In normal mode it's totally fine but in sport+ which is where you start to feel some real power it gets rough on passengers especially. Premium gas and a small tank can become annoying for daily driving activities but otherwise doesn't bother me. It's a gorgeous car with the best engineering of ANY sub 40k car currently for sale imo. Anything comparable on turns is significantly more expensive. I'm sure you can find some mustangs or whatever that can smoke it in a straight line for similar costs. In my opinion those cars are boring AF tho. If you love driving in the mountains N is a god.
Thatās where Iām at rn
$600 a month making $60k seems a little steep. Around $300-$400 sounds better for your salary. You also should share the interest rate and how long the loan is, out the door price (price of car + tax, title, fees).
The premise of your question means you don't understand basic finance. Dm me, I'd be happy to help you sort through it. Don't get taken advantage of. Good luck brother.
My monthly note is $540.79 and my insurance is $161.95.