Question: How Much Should I Spend On My First Car?

Most first cars should be under $4000, especially if your parents aren’t going to buy you the car.

Your first car should pretty much be garbage, or next to it, unless you have the money otherwise.

How much money should you spend on a first car?

Rule of thumb: Spend no more than 20% of your take home pay on a car. If you take home $2,500, spend $500 on a car.

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

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. In our $3,300 example that works out to a maximum of $500 to $660 per month.

How much should I spend on a car if I make 30000?

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.

How much should I spend on a car?

How Much Should I Pay? Another rule of thumb says that drivers should spend no more than 15% of their monthly take-home pay on car expenses. So under that guideline, if your net pay is $3,500 a month, it’s best to avoid spending more than $525 on car costs.

What is the best first car?

There are definitely some excellent options for good cheap cars out there that make for the best first cars around.

  • 2018 Honda Civic.
  • 2019 Chevrolet Cruze Premier Sedan.
  • 2019 Subaru Impreza.
  • 2018 Mazda 6.
  • 2019 Toyota Corolla.
  • 2019 Ford Fiesta.
  • 2019 Hyundai Elantra.
  • 2019 Nissan Sentra SR Turbo.

Should I pay cash for a car?

The common thinking is that buying a car with cash is better than financing because you won’t have to pay interest. After all, with a cash deal, you pay exactly the price shown and no more. If you want to spend your cash, that’s great: It means you won’t have a payment or another care about the car’s financing.

What cars 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 like gas, insurance, repairs and maintenance.

What is a reasonable car payment?

According to this rule, when buying a car, you should put down at least 20 percent, you should finance the car for no more than 4 years, and you should keep your monthly car payment (including your principal, interest, insurance, and other expenses) at or below 10 percent of your gross (i.e. pre-tax) monthly income.

Is it better to finance a car through a bank or dealership?

Financing Through the Dealer

Dealer-arranged financing works the same way as bank financing—the only difference is that the dealer is doing the work on your behalf. In general, you can usually get lower interest rates on a new car through a dealer than on a used car.

Should I repair my car or replace it?

It is almost always less expensive to repair a car than buy a new one. Although something as severe as a blown motor or a failed transmission will run you between $3,000 and $7,000 to replace at a dealership, such repairs still don’t cost as much as buying a new car. You really need the car to last a while longer.

How much is a car battery?

According to CostHelper, a typical car battery costs between $50 and $120, while premium batteries cost $90 to $200. Service providers on Angie’s List that we spoke with say the average battery cost runs in the $75 to $120 range.

How much is a Lamborghini?

Lamborghini is an Italian car brand known for manufacturing some of the most luxurious sports cars in the market. Typical Lamborghinis go for about $200,000. Luxurious does mean that there is a heavy price tag associated with the brand.