How much should I spend on my first car?

Experts recommend that you spend $5,000 to $10,000 on your first car. But honestly, it all comes down to what you can afford. Here are a few simple tips to help you calculate a figure that would work well for you: Don't spend more than 15% of your gross pay or 20% of your take-home pay.

How much should I spend on my first car as a teenager?

It's generally suggested that parents cap their spending limit at around $10,000 for their teen's first vehicle, and most stick to used ones. If you stick to this guideline, then the most you need to save is around $2,000.

Is $1000 enough to buy a car?

Minimum Down Payment on Used Car

If you're looking to purchase a used car for around $10,000, then $1,000 is a decent down payment. It's widely advised to put down at least 10% of the vehicle's value to increase your odds of getting approved for a loan, and to minimize your interest charges.

How much should you put down on a $12000 car?

“A typical down payment is usually between 10% and 20% of the total price. On a $12,000 car loan, that would be between $1,200 and $2,400. When it comes to the down payment, the more you put down, the better off you will be in the long run because this reduces the amount you will pay for the car in the end.

Is 3000 a good down payment for a car?

A good rule of thumb for a down payment on a new car loan is 20% of the purchase price. A down payment of 20% or more is a way to avoid being “upside down” on your car loan (owing more on the car than it's worth).

How Much Car Can I Afford (20/4/10 Rule)

How can I save for a car at 17?

What age should I buy a car?

Millennials choose age 21 as ideal time to buy or lease first car.

Should you buy a 16 year old a car?

A car can absolutely be a need, not a want,” says Ron Lieber, New York Times columnist and author of “The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money.” However, experts agree that a parent should not get a teenager a “dream car,” for both safety and financial reasons.

How can I afford a car at 18?

Why a teen should get a car?

Having a car opens up an enormous amount of opportunity for a teenager to grow and experience personal freedom and responsibility. Any teenager with access to a car should take full advantage of this privilege.

Should parents pay for first car?

“I recommend helping your child buy a safe but inexpensive car if you can afford it. If your child wants a nicer ride, they can work for it.” Latham strongly cautions parents against buying a new or expensive car, even if you can afford it. “It just doesn't make financial sense.

How many miles should a 15 year old car have?

Image via Flickr by FotoSleuth. As a general rule, you should assume that the average car owner puts 12,000 miles on a car each year. To determine whether a car has reasonable mileage, you can simply multiply 12,000 by its age. That means good mileage for a car that's 5 years old is 60,000.

What percent of people buy their first car?

AutoTrader.com surveyed parents with children of driving age and found that while 14 percent said their parents had purchased their first car, 41 percent said they bought their child's first car for them.

Can a 17 year old buy a car from a dealership?

Unfortunately, car finance isn't an option for 17 year olds; you're not allowed to sign a credit agreement until the age of 18. However, there are a few things you can do to prepare for buying your first car while you're still under 18.

How can a teen afford a car?

As most teens lack credit histories, they can have trouble arranging financing. Your bank, credit union or even insurer may be able to provide a loan, but you'll probably need someone, such as a parent, with an employment and credit history to cosign your loan. Even with financing, the biggest cost will be upfront.

How can a teen get their first car?

Your teen can buy a car from a dealership if they are older than age 18. If they are not a minor, they need to either pay for the car in full in cash, or meet financing terms, which include having a good credit history and income. Some teens can get a car loan with a co-signer.

What teens should know before buying a car?

Be sure to factor in additional costs like upfront fees for the registration, inspection and license plate. Then there are ongoing expenses like insurance, maintenance and gas. Some states charge a yearly tax for owning the car, too.

What age group buys BMW?

The average age of a Mini buyer in the U.S. is 52, according to BMW, and about 55 for the BMW brand itself.

What is the average age people buy their first car?

One percent of our respondents were younger than 20, 27% were in their 20s, 32% were in their 30s, 19% were in their 40s, and 21% were 50 or older.

What is a good car for your first car?

What color car has the fewest accidents?

Overwhelmingly, white is considered the safest car color with the lowest risk of being struck. According to one study, white cars are 12% less likely to be in a crash than black cars, even during the day.

Is 30k miles a year a lot?

Continuous driving is the ideal state for the longevity (in terms of miles) of a car. 30,000 miles in one year should be better, not worse, than 30,000 miles spaced out over 2-3 years as would be more typical. A modern, reliable car is virtually good as new at 30,000 miles with routine maintenance.

How much is too much for a car?

When it's time to buy a car, you'll probably want to know: “How much car 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 ...

What percent of teens buy their own car?

Today that trend has almost totally reversed: 41 percent of those same adults bought their child's first car for them, and only 17 percent of their children purchased their first car for themselves.

Should I get a new or used first car?

The best way to save money is to buy used. A new car loses almost half its value in the first five years, so go for one that's a few years old yet still has contemporary safety features and many useful years ahead of it. Buying used also means a nicer car for the money than possible if buying new.