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

How Much Should I Spend on a Car If I Make $60,000 a Year? You should spend **no more than half of your yearly salary** on a car, so if you make $60,000 dollars per year, you should buy a car that costs $30,000 or less.

## What 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).

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

The frugal rule: **10% of income**

For many people, I think that will be between 10–15% of your income. So if you earn $25,000 a year, that’s going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that’s a used car for around $10,000 or $12,000.

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

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.

## How much should I pay for a car based on salary?

How much should you spend on a car based on your income? As a rule of thumb, you should never spend anything more than 100% of your income. Generally, it is advisable to spend between **10-15% of your annual income**, and if you want to buy the car of your dream you can consider spending 15-30% of your income.

## What is average car payment?

Key facts about auto loans

The average monthly car payment in the U.S. is **$563 for new vehicles, $397 for used vehicles and $450 for leased vehicles**. Overall, Americans owe nearly $1.4 trillion in auto loan debt. Auto debt makes up 5% of American consumer debt.

## What is a reasonable monthly payment for a car?

The average monthly car payment was **$568 for a new vehicle** and $397 for used vehicles in the U.S. during the second quarter of 2020, according to Experian data. The average lease payment was $467 a month in the same period.

## What is too much car payment?

When it’s time to buy a car, you’ll probably want to know: “How much car can I afford?” Financial experts answer this question by using a simple rule of thumb: Car buyers should spend **no more than 10% of their take-home pay on a car loan payment** and no more than 20% for total car expenses, which also includes things …

## How much is a 20000 car loan a month?

For instance, using our loan calculator, if you buy a $20,000 vehicle at 5% APR for 60 months the monthly payment would be **$377.42** and you would pay $2,645.48 in interest.

## How much should I spend on a car if I make 75000?

**10% of your salary**: If you want to be frugal about buying a car, stick to 10% of your annual salary. … This includes your mortgage, car loan, personal loans, student loans, and minimum credit card payments. If you make $75,000 per year, your total loan payments shouldn’t exceed $2,250 per month.

## Why you should not pay cash for a car?

If you put a big chunk of your savings into the purchase of a car, that’s money that’s not going into a savings account, money market or other investment tools that could be earning you interest. … The second con to paying cash for a car is the possibility of **depleting your emergency fund**.

## How much should you put down on a 14000 car?

The vehicle’s price determines how much cash you should put down

Vehicle Price | 15% Down | 25% Down |
---|---|---|

$14,000 | $2,100 | $3,500 |

$16,000 | $2,400 | $4,000 |

$18,000 | $2,700 | $4,500 |

$20,000 | $3,000 | $5,000 |

## What salary do you need to buy a 100k car?

Assume insurance of $400 per month, gas of $100 per month, and maintenance of $1,000 per year. That equals $27,784 per year, meaning you’ll have to make $277,840 per year to comfortably afford a $100,000 car (does not include taxes and registration fees).

## Is a salary of 50k good?

“As such, a $50,000 salary would be **above the national median** and a pretty good salary, of course, dependent on where one lives.” That’s good news for people making an annual salary of $50,000 or higher.

## How much per month is a 50k salary?

How Much Do You Earn Monthly?

Annual Income | Monthly Pretax Income | Monthly Post-tax Income |
---|---|---|

$50,000 | $4,166.67 |
$3,125.00 |

$60,000 | $5,000.00 | $3,750.00 |

$70,000 | $5,833.33 | $4,375.00 |

$80,000 | $6,666.67 | $5,000.00 |