FAQs
How much car can I afford based on salary? According to our research, you shouldn't spend more than 10% to 15% of your net monthly income on car payments. Your total vehicle costs, including loan payments and insurance, should total no more than 20%.
How much car can I afford making $100000 a year? ›
How much car can I afford based on salary?
Annual salary (pre-tax) | Estimated monthly car payment should not exceed |
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$25,000 | $208 per month |
$50,000 | $416 per month |
$75,000 | $625 per month |
$100,000 | $833 per month |
2 more rowsOct 13, 2023
What car can I afford with a 40k salary? ›
on the price of a car. is not to exceed 35% of your gross income. That means if you make $40,000 a year, the cars price should not exceed $14,000. If you make $80,000, the cars price should be below $28,000. And at 150 k salary, that means your max car price should be 50 2500.
What car can I afford with a 50k salary? ›
If you make a $50,000 gross salary, after taxes (depending on where you live) your monthly take-home pay is roughly $3,230. Based on the 10% rule, you could afford, at most, a $323 monthly car payment. If you take out a 60 month (5 year) auto loan at 8% interest, you can afford a $17,000 car.
What is considered 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 car on 60k salary? ›
How much should I spend on a car if I make $60,000? If your gross salary is $60,000, your take-home monthly pay is probably around $3,750, assuming about 25% of your pay goes toward taxes and other expenses. Based on the 10-15% calculation, you should spend no more than $562.50 on a monthly car payment.
What car can I afford with a 200k salary? ›
Get a nice Honda Accord or a Toyota Camry. Honda and Toyota make great cars. If you want something a little nicer buy an Acura TLX or a Lexus ES. If you prefer an SUV, get a Honda/Acura SUV., or an equivalent Toyota/Lexus.
How do I tell if I can afford a car? ›
It depends on how much income you have after your bills and expenses. But as a rule of thumb, your car payment should not exceed 15% of your post-tax monthly pay. For example, if after taxes, you make the U.S. median income of $37,773, you could shop for a car that costs up to $472 per month.
How much is the monthly payment for a 100k car? ›
This is what you'd spend on a $100,000 car
Loan term | 5.00% interest rate | 6.5% interest rate |
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6 years | Per month: $1,449.44 Total interest: $14,359.96 | Per month: $1,512.89 Total interest: $18,928.34 |
7 years | Per month: $1,272.05 Total interest: $16,852.35 | Per month: $1,336.45 Total interest: $22,261.74 |
2 more rowsOct 27, 2023
What is the 20 3 8 rule? ›
The 20/3/8 car buying rule says you should put 20% down, pay off your car loan in three years (36 months), and spend no more than 8% of your pretax income on car payments. As we go into depth to determine how realistic this rule is, you may consider whether it can actually help you budget for your next car.
If you have been qualified for a $30,000 car loan, the monthly payment depends on the amount of the down payment, interest rate, and loan length. For example, with a down payment of $2,500, an interest rate of 5%, and a loan length of three years, you will have to pay $824.20/month.
Is 40k a good salary for a single person? ›
A $40,000 salary may be sufficient for an individual in a low-cost area, but it may not be enough for a family to live comfortably in most parts of the US. Rising inflation has made it more challenging to live on a $40,000 salary, but it still exceeds the poverty threshold for families.
How much car can I afford on 30k a year? ›
To determine how much car you can afford, financial experts recommend keeping your total monthly car payment at 10% or less of your gross monthly income, spending no more than 15% to 20% of your take-home pay on car expenses, and ensuring that total vehicle costs, including loan payments and insurance, don't exceed 20% ...
What is the fastest car you can buy under 50k? ›
The fastest cars under $50k
Fastest Cars Under $50,000 | | |
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Rank | Sports Car | MSRP |
1 | Ford Mustang GT With Performance Package | $47,570 |
2 | Chevrolet Camaro SS | $39,900 |
3 | BMW M2 | $48,900 |
12 more rowsMay 21, 2023
What credit score is needed for a 50k car loan? ›
To buy a $50,000 car and get favorable auto loan options, it's best to have a credit score in the prime or super prime categories. Prime borrowers are those with a credit score within the 661-780 range, while super-prime borrowers fall within the 781-850 range.
How much car can I afford making $70000 a year? ›
How much car can I afford with a 70k salary? Based on the 20/4/20 rule, with an average interest rate, you can afford a $19,000-20,000 car on your $70k salary.
Can I spend 50% of my income on a car? ›
If you need a soft guideline, Roosenberg advises spending no more than 20% of your post-tax monthly income on your car payment. But, keep in mind that number can vary depending upon your state's cost of living and your outstanding debt, according to Roosenberg.
How much should I spend on a car if I make $200,000? ›
It's simple: Spend no more than 10% of your gross annual income on the purchase price of a car. Why? Because the upfront cost of a vehicle isn't going to be the only thing you pay for, and cutting down your base price budget is the most effective way to save money.