## How much car can I afford with my salary?

The rule of thumb among **many car**-buying experts dictates that your **car** payment **should** total no more than 15% of your monthly net **income**, sometimes called your take-home pay (some might stretch this to 20%, but 15% is more conservative and therefore likely to make budgeting even easier).

## What percentage of your income should go towards a car payment?

Many financial experts recommend keeping total **car** costs below 15% to 20% of **your** take-home **pay**. So while **your car payment** is 10% of **your** take-home **pay**, you **should** plan on spending another 5% on **car** expenses.

## How much should I spend on a car if I make $60000?

Some financial experts recommend setting your **car**-buying budget at half of your annual salary. **If** you look at the previous example of **making** $5,000 monthly, that will equate to an annual salary of **$60,000**. Half of that **is** $30,000. According to this rule, you **can spend** up to $30,000 on your upcoming **car** purchase.

## What is the monthly payment on a $30000 car?

A $30,000 car, roughly **$600** a month.

## What car can you afford with 120k salary?

**You can** comfortably **afford** a **car** that is roughly half of your **salary**, maybe even a little more **if you** have little other debt. So at **120k you can afford** a **car** up to 60–70k. Honestly depends on your other expenses. **If you** live way below your means on everything else, **you** may even **be** able to **afford** a 100k **car**.

## Is 30k too much for a car?

If you do not have **30k** cash and no debt, yes, **30k** is **too much**. The only time you should ever get a **car** loan is when you are borrowing the money at a very low rate, and you have carefully considered that buying a new **car** is worth the instant loss of money and instant depreciation for your particular situation.

## How much do you have to make to afford a 40k car?

Depends on your definition of “**afford**”. The average person at my store that buys a $40k **car** makes $100k-$120k per year household income. They generally lease or finance the **vehicle**. I **do have** some customers that **make** $80k buying a $40k **car** but that is uncommon.

## How much should I spend on a car if I make 80000?

The frugal rule: 10% of income

**If** you **earn $80,000**, that’s a used **car** for around $10,000 or $12,000.

## What is a high car payment?

According to experts, a **car payment** is too **high** if the **car payment** is more than 30% of your total income. Remember, the **car payment** isn’t your only **car** expense! Make sure to consider fuel and maintenance expenses. Make sure your **car payment** does not exceed 15%-20% of your total income.

## How much should I spend on a car if I make 50000?

Know Your Expenses

Expert estimates range broadly. Greg McBride, a senior vice president, chief financial analyst at Bankrate.com, advises that a **car** payment **should** equal no more than 15 percent of your pretax monthly pay. That means that **if** you **make $50,000** a year, your monthly **car** payment could be as **much** as $625.

## Is 15k a lot for a car?

A **15k car** with your income is absolutely reasonable. You could even go to 25k without pain. A private sale, 2-4 year old, 30k mile **vehicle** is a great option. If you go shopping at dealers for a 2-4 year old “certified pre-owned” **car** you might find the prices to be as high as a new **car**.

## How much do you have to make to afford a Tesla?

$50,000 is a lot of money to borrow. A bank will usually limit a loan based on your debt-to-income ratio. If you are currently debt free with a good credit rating, the minimum income needed to purchase that **Tesla** would be no less than $3K/month gross.

## Is a 60 month car loan bad?

While I typically think **financing** a **car** for **60**–**months** is not always a **bad** thing, I would definitely NOT go any longer than that. All in all, I think that you should strive to use a 36 or 48 **month loan** because you will pay less interest and it will “help you” buy a **car** that you can better afford.

## How much is a 10000 car loan a month?

$10,000 Car Loan. Calculate the Monthly Payment.

Monthly Payment | $236.00 |
---|---|

Total Interest Paid | $1,327.91 |

Total Paid | $11,327.91 |

## What is minimum down payment for car?

What is the **minimum down payment** for a **car** loan? The lenders generally finance 90% of the On-Road Price of the **car**. Some customers may be eligible for 100% funding too. This means the **minimum** possible **down payment** that you have to **pay** includes the RTO and insurance charges.