How much money is enough for a car? (2024)

How much money is enough for 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.

What is a good amount for a car?

In general, it's recommended to spend no more than 10% to 15% of your monthly take-home income on your car payment, and no more than 20% on your total vehicle expenses, including insurance and registration. Read on to learn how you can determine how much car you can afford based on your financial situation.

How much money do I need for a reliable car?

If you take pride in your frugality, 10–15% of your income sounds about right. If you value the reliability a newer, more expensive car brings, then 20–25% is a good benchmark. This gets you $5,000 to $7,500 on a $25,000 salary. Still not a lot, but you'll have more options.

What's a good amount to save up for a car?

How much should I save before looking at a car? A down payment of 20% is considered a solid savings goal. If you save even more for your down payment, you could save even more on monthly payments and interest.

Is $10,000 dollars enough for a car?

Buying a used car for less than $10,000 can get you behind the wheel of a reliable and good-looking ride without costing you a fortune. However, you must prepare for potential repairs that can empty your wallet even though you might not break the bank with upfront costs.

Is $100 000 dollars a lot for a car?

A $100,000 car is an expensive vehicle, but there are plenty of people who purchase cars in this price range.

How much is cheapest Tesla?

The cheapest Tesla car. Tesla's Model 3 is the cheapest Tesla car available. With the base model retailing for $42,990, this car is Tesla's first attempt at a mass-market electric car to appeal to automobile shoppers of a wide range of budgets.

Is $500 a month too much for a car?

How much should you spend on a car? Whether you're taking out an auto loan or a personal loan to pay for your car, it's a good idea to limit your car payments to between 10% and 15% of your take-home pay. If you take home $4,000 per month, you'd want your car payment to be no more than $400 to $600.

Is $600 a month a lot for a car?

As a general rule, it's recommended that your monthly car payment not exceed 20% of your take-home pay. So, if your monthly take-home pay is $3,000, your car payment should be no more than $600.

How old is a reliable car?

Cars are usually reliable for up to five years if they've been looked after. But a well-maintained 10-year-old car could be a better investment than a newer model that hasn't been cared for as well. Budget is also a major factor. The older the model, the lower the cost.

How much should I spend on a first car?

For your first car, you can spend an average of $5000 to $10000. Most first-time car buyers can't afford a car worth more than $10000, and it's risky to purchase a vehicle costing less than $5000 as it cannot be relied upon. Auto loan payments will not be unmanageable for you anymore.

How many miles can a car last?

A conventional car can last for 200,000 miles. Some well-maintained car models will reach 300,000 or more miles total. The average passenger car age is currently around 12 years in the United States. Choosing a well-built make and model can help extend your car's longevity.

Is $400 a month too much for 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.

Can I afford a new car?

NerdWallet recommends spending no more than 10% of your take-home pay on your monthly auto loan payment. So if your after-tax pay each month is $3,000, you could afford a $300 car payment. Check if you can really afford the payment by depositing that amount into a savings account for a few months.

Is $900 a month too much for a car?

Ideally, you don't want to spend a week or more of your pay each month on a car note. A good ballpark range is that you should aim to spend no more than 15% to 20% of your income on all transportation costs — and that includes insurance, parking, maintenance, gas to put in the tank, and monthly payments.

How much to afford a $100,000 car?

In that case, you need to consider groceries, utilities, and other household expenses. To afford a $100,000 car, it's probable you need to make $300,000 a year conservatively after taxes. For this example, we use our car payment calculator and approach it using the price of the car of $100,000.

Is $25,000 too much for a car?

A $25,000 car is a relatively affordable vehicle for most people, and it's well below the national average cost of a vehicle.

Is $1,000 for a car good?

A $1,000 car could be in decent shape, apart from cosmetic damage and worn interior. If you buy an older, well-maintained car, a $1,000 car may provide excellent value. I've actually had a car that only cost $400 that was still in good shape mechanically. It had rust spots on the doors, but not on the chassis.

Is $1,000 a month a lot for a car?

For large luxury models, $1,000-plus payments are the norm. Even a handful of buyers with subcompact cars have four-figure payments, likely due to having shorter loan terms, poor credit, and still owing money on previous car loans, according to Edmunds analysts.

How do I make 300k a year?

Is $40,000 a lot for a used car?

Under normal circ*mstances, a vehicle with 40,000 miles may be considered relatively new, even if it's several years old. A younger vehicle with 140,000 miles would be considered significantly older, but that doesn't necessarily mean it's in bad condition.

How long will a Tesla last?

What is the life expectancy of a Tesla car? The life expectancy of a Tesla car can vary, but many Tesla owners report their vehicles lasting well over a decade with proper maintenance. Tesla's battery and drive unit warranty usually spans 8 years or a specified mileage limit, which can offer a useful guideline.

What's the most expensive car?

Price: $142 million. Let's start at the top, with the most expensive car ever sold at auction. The 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe Prototype sold for $142 million in 2022. RM Sotheby's sold it on behalf of Mercedes-Benz at a private auction held at the carmaker's museum in Stuttgart, Germany.

Will Teslas get cheaper?

A low-cost model of Tesla will launch in 2025, CEO Elon Musk told investors. It could help the EV maker compete with BYD and other surging Chinese automakers. A cheaper model of Tesla electric vehicle is coming late next year, CEO Elon Musk told investors today.

Is $700 a month a lot for a car?

According to Experian's third-quarter automotive finance report, drivers are spending over $700 and $500 each month for new and used vehicles, respectively. Insurance costs an average of $2,014 per year, according to Bankrate data.