How much should you spend on a car if you make 100k a year?
Whether you’re paying cash or financing, the purchase price of your car should be no more than 35% of your annual income.
If you’re financing a car, the total monthly amount you spend on transportation – your car payment, gas, car insurance, and maintenance – should be no more than 10% of your gross monthly income..
What can I afford with 100k salary?
Some experts suggest that you can afford a mortgage payment as high as 28% of your gross income. If true, a couple who earn a combined annual salary of $100,000 can afford a monthly payment of about $2,300/month. That could translate to a $450,000 loan, assuming a 4.5% 30-year fixed rate.
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.
How much should I spend on a car if I make $40 000?
Most financial experts agree that your car expenses (monthly payment, insurance, fuel, taxes, routine maintenance and so forth) should be no more than 15 to 20% of your net 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.
What kind of car can I afford with my salary?
Rules of Thumb The general rule of thumb is that you should not spend more than 20% of your monthly take-home pay on cars, according to Edmunds.com (via Bankrate). So if your after-tax monthly income is $4,000, your total cost of car ownership for ALL of the cars you own should not exceed $800 under this rule.