What is a reasonable car payment?

Expert estimates range broadly. Greg McBride, a senior vice president, chief financial analyst at Bankrate.com, advises that a car payment should equal no more than 15 percent of your pretax monthly pay. That means that if you make $50,000 a year, your monthly car payment could be as much as $625.

What is a decent monthly payment for a car?

The average monthly car payment for new cars is $609. The average monthly car payment for used cars is $465.

Is a $500 car payment too much?

How much should you spend on a car? If you're taking out 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 $700 too much for car payment?

Experts say your total car expenses, including monthly payments, insurance, gas and maintenance, should be about 20 percent of your take-home monthly pay. For non-math wizards, like me – Let's say your monthly paycheck is $4,000. Then a safe estimate for car expenses is $800 per month.

Is $400 a month good for car payment?

The result is that the car will be a lot more expensive in the end. In the example we've given, a car payment of $400 per month for five years (60 months) equates to $24,000. But the same $400 per month spread out over six years (72 months) is $28,800, while it's $33,600 over seven years (84 months).

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

How much would monthly payments be on a $30000 car?

A $30,000 car, roughly $600 a month.

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 is the average car payment 2020?

Edmunds data for the same period in 2020 shows an average monthly payment of $437, representing a not-insignificant increase of $83 per month. It also shows that the average loan term has increased from 68.1 months to 70 months, meaning used car buyers are paying more over longer periods of time.

How much car can I afford based on salary?

Whether you're paying cash, leasing, or financing a car, your upper spending limit really shouldn't be a penny more than 35% of your gross annual income. That means if you make $36,000 a year, the car price shouldn't exceed $12,600. Make $60,000, and the car price should fall below $21,000.

What is the best credit score to buy a car?

In general, lenders look for borrowers in the prime range or better, so you will need a score of 661 or higher to qualify for most conventional car loans.

How much should I spend on a car if I make $70 000?

This includes your mortgage, car loan, personal loans, student loans, and minimum credit card payments. If you make $75,000 per year, your total loan payments shouldn't exceed $2,250 per month.

How much should a teenager save for a car?

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.

How much should I spend on a 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 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.

How much a month is a 40000 car?

Your monthly payments would look like this for a $40,000 loan: 36 months: $1,146. 48 months: $885. 60 months: $737.

What would the payments be on a $15 000 car?

Using the formula above, you can estimate your monthly payment for various loan terms to be: 12 months: $1269.25. 24 months: $643.99. 36 months: $435.49.

How can I save $1000 fast?

How much should I put down on a 50k car?

Once you've figured how much the vehicle is going to be, multiply it by 15-20%. Although this is not possible for everyone, you should always aim for at least a 15-20% down payment when buying a car, the more the better.

What car is best for a first car?

What's the 50 30 20 budget rule?

Senator Elizabeth Warren popularized the so-called "50/20/30 budget rule" (sometimes labeled "50-30-20") in her book, All Your Worth: The Ultimate Lifetime Money Plan. The basic rule is to divide up after-tax income and allocate it to spend: 50% on needs, 30% on wants, and socking away 20% to savings.

How much should I spend on a car if I make $100000?

For our monthly income levels, that translates into the following breakdown: So, theoretically, if your salary is $50,000 you could afford a car payment of $430 or less. With a $100,000 salary, you could afford a mortgage payment of no more than $2,500.

What can I afford on 70k a year?

So if you earn $70,000 a year, you should be able to spend at least $1,692 a month — and up to $2,391 a month — in the form of either rent or mortgage payments.

How much of a car loan can I get with a 700 credit score?

A 700 credit score puts you firmly in the prime range of credit scores, meaning you can get a competitive rate as long as you shop around, have good income, and have a solid debt-to-income ratio. A 700 credit score gets an average car loan interest rate of 3% to 6% for new cars and 5% to 9% for used cars.

What credit score is needed for a 2021 car?

The recommended credit score needed to buy a car is 660 and above. This will typically guarantee interest rates under 6%.