What is a decent car payment?

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What is a decent car payment?

Many financial experts recommend keeping total car costs below 15% to 20% of your take-home pay. For example, if your monthly paycheck is $3,000, your car payment would be about $300 and you’d plan on spending another $150 on automotive expenses.

Q. What car can I afford with 40k salary?

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. I would suggest $120k minimum before even considering it.

Q. Is 40000 a lot of money for a car?

Do you consider $40,000 car ‘expensive’? – Quora. Yes, $40k by all means is expensive. Considering the per capita income in USA is $51.5K and in Canada its $50k, its above 80% of average income for most of the people. Yes, $40k by all means is expensive.

Q. How much should I spend on a car if I make 42000?

The rule states that you should spend no more than 1/10th your gross annual income on the purchase price of a car. If you make the median per capita income of ~$42,000 a year, limit your vehicle purchase price to $4,200.

Q. Is 30k a lot for a new 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.

Q. How much do you need to make to afford a 200k car?

A person making 100k a year is making more than 8k per month. With the average length of car loans being around 6.5 years now that means that for around $2500 a month you can get a 200k car, which is about 1/4 of the person’s 100k yearly income.

Q. How much should you spend on a car on a salary of 40, 000?

We wanted to see what it would be like for someone making an annual salary of $40,000 can actually afford a $30,000 car. Most financial advisers will recommend you spend about 10 percent of your monthly gross income and no more than 15 percent. That 10-15 percent isn’t just what you spend on the car payment.

Q. How much should I spend on a car loan?

Our simple Car Loan affordability calculator shows you how much you can afford and how your auto loan interest rate and term affects how much car you can buy. How much should you spend on a car? Probably not as much as you might think. You can spend between 10% and 50% of your gross annual income on a car.

Q. How much can I afford to pay for a car?

The above car affordability calculator uses a conservative but solid assumption about how much car you can afford. 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.

Q. Can you buy a car for$ 30, 000?

While buying a $30,000 car on a $40,000 annual salary is doable in the right circumstances, it’s right on the edge of what’s easily possible. In most cases, buying a car for $12,000 to $15,000 is a better option.

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