Is $10,000 a good budget for a car? (2024)

Is $10,000 a good budget for a car?

Long-term expenses for potential ongoing repairs can outweigh any initial savings from a low purchase price. Buying a car under $10,000 can be a good option if you keep enough money for breakdowns and maintenance.

Is 10k a good budget for car?

The used car market has been volatile over the past few years, with prices reaching record levels before receding somewhat in recent months, but $10,000 is still enough to get a genuinely good car with plenty of life left.

Is $10,000 enough for a used car?

Making the right decision for you

To save money during these high-cost times, consider exploring a vehicle for $10,000 or less. Even if you drive it for a few years or so, you'll be able to keep monthly expenses down and that means a considerable amount in 2023.

What is a realistic budget for a car?

According to our research, you shouldn't spend more than 10% to 15% of your net monthly income on car payments. Your total vehicle costs, including loan payments and insurance, should total no more than 20%. You can use a car loan calculator to calculate a monthly payment within your budget.

Is $10,000 a good down payment for a car?

The typical down payment on a car ranges from 11% to 20% of the car's value. The credit bureau Experian says a 20% down payment might help shield you from depreciation. Depreciation refers to the ever-shrinking value of your car. The value of a new car declines about 20% in just the first year.

Is $10,000 too much for a first car?

$10,000 is reasonable, IMO. It's enough for a relatively low mileage 10 year old vehicle in very good condition with a few amenities and decent fuel economy. And AWD if you prefer. My target for my latest daily driver a few months back was 15–20k, for a nice 2–5 year old, low mileage vehicle.

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 should I put down on a $10,000 dollar car?

A down payment between 10 to 20 percent of the vehicle price is the general recommendation. But if you can afford a larger down payment, you can save even more money on interest payments over the life of the loan.

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 $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.

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.

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.

How much of a car should I afford?

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 credit score is needed to buy a car?

The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.

Is $2,000 enough for a down payment for a car?

If you're considering a car that costs $25,000, putting down between $2,000 and $4,000 would be wise. However, the true answer to this question depends on your negotiation strategy. If you can negotiate a lower price or better terms, putting more money down may not save you much interest.

Is $2,000 enough for a downpayment on a car?

A rule of thumb for down payments on new car loans is 20% of the purchase price, which helps you avoid owing more on the loan than the car is worth. It's best to put as little money down as possible when leasing a car.

How much should a 17 year old spend on their first car?

Based on that approach, anywhere from $5,000 to $20,000 is generally recommended. For instance, Kelley Blue Book compiled a list of best cars for teens under $20,000. However, if you and your teen are set on buying brand new, Consumer Reports' list of Best New Cars For Teens ranges between $20,000 and $40,000.

Is $5,000 dollars enough for a used car?

With $5,000, you're going to be limited to older used vehicles. Some things you could expect from used vehicles under $5,000 include: At least 100,000 miles or more. Likely some cosmetic damage.

What is bad mileage for a first car?

On average, a car should have around 10,000 miles per year. So, for an easy way to calculate how many miles on a used car is too much, just multiply its age by 10,000. For example, a five-year-old car would ideally have 50,000 miles or less on its odometer.

How much is too expensive for a car?

Aim to spend less than 10% of your take-home pay on your car payment and less than 15% to 20% on car expenses overall. Philip is an automotive expert who writes a syndicated column for NerdWallet.

What salary can afford a 100K 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.

How do I make 300k a year?

Is 12000 good for a car?

There's a general rule you'll want to stick to while looking at the mileage on a potential used car purchase. Lower is better. The average mileage a car accrues per year is 12,000 miles. Given that number, the average 10-year-old car should have roughly 120,000 miles on the odometer.

Is it worth putting $1000 down on a car?

A down payment of 20 percent is the go-to amount, but you can always put down more if you can afford it. Avoid paying less than 10 percent — especially if you have bad credit — so you can still secure a competitive interest rate. Take the time to compare auto loans and find financing before car shopping.

Can you negotiate car price?

As independent franchises, dealers can sell the car at any price. Some dealerships and brands have developed no-haggle pricing. The price on the window is the price of the car, they say. In most cases, you'll still need to negotiate the value of your trade, the cost of financing and the price of any add-ons.