How Much Car?

Dave says it's not wise to have more than half your gross income tied up vehicles.

QUESTION: Listener asks Dave how much a person should have of their gross income tied up in cars. Dave explains why it’s smart to have no more than half tied up in anything that has a motor.

ANSWER: All of your vehicles, anything with a motor in it, should not add up to more than half your annual income. If you make $50,000, you shouldn’t have more than $25,000 in motorized stuff. The reason is that those go down in value like a rock.