Driving Like Royalty: Can You Afford a 2023 Phantom Rolls Royce?

The 20/4/10 Rule Unveiled

For those unfamiliar, the 20/4/10 rule is the car buyer's holy grail. It insists on:

1. 20% Down Payment: The magic starts with a hefty 20% down payment.
2. 4-Year Loan Max: Finance the car for four years or less.
3. 10% Monthly Income Cap: Your monthly car payment, insurance, and maintenance combined should not exceed 10% of your gross monthly income.

Cracking the Phantom Code

Let's break it down for the Phantom:

1. Cost: $460,000
2. 20% Down Payment: $92,000
3. Financed Amount: $368,000

Monthly Costs: The Real Reveal

• Monthly Payment: $8,474.78
• Insurance: $645
• Total Monthly Cost: $9,119.78

Calculating the Magic Number

Now, multiply the total monthly cost by 10 to get the monthly income needed: $91,197.78. To determine the required yearly salary, multiply by 12: $1,094,373.

So, according to the 20/4/10 rule, you should be making around $1 million per year to comfortably afford the 2023 Rolls Royce Phantom.

& don't forget to use my "How Much Car Can You Afford" calculator!