Is 350 a month car payment good?

Asked by: Bernardo Lakin II  |  Last update: February 18, 2024
Score: 4.6/5 (1 votes)

Because it's recommended you spend no more than 10% to 15% of your monthly after-tax income on your car payment, your monthly payment will significantly influence the kind of car you can afford. If your monthly take-home pay is $3,500, then that means that your car payment shouldn't exceed $350 to $525.

Is $300 a month good for a car payment?

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.

What is considered a good monthly car payment?

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 $400 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 800 a month too much for a car payment?

Step 2: Consult your budget

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.

My Car Payment is $1,200/Month!

21 related questions found

What is considered a bad car payment?

According to experts, a car payment is too high if the car payment is more than 30% of your total income. Remember, the car payment isn't your only car expense! Make sure to consider fuel and maintenance expenses. Make sure your car payment does not exceed 15%-20% of your total income.

What is the average car payment for 2023?

Visit your My NerdWallet Settings page to see all the writers you're following. The average monthly car loan payment in the U.S. is $726 for new vehicles and $533 for used ones originated in the third quarter of 2023, according to credit reporting agency Experian.

What car can I afford with 80k salary?

you comfortably afford under an 80 000 salary. a volkswagen golf gti audi a3 a toyota. avalon the kia stinger and the cadillac ct4.

What car can I afford with 70k salary?

How much car can I afford with a 70k salary? Based on the 20/4/20 rule, with an average interest rate, you can afford a $19,000-20,000 car on your $70k salary.

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.

What's a normal car payment?

The average monthly car payment was $644 for a new vehicle and $488 for used vehicles in the U.S. during the fourth quarter of 2021, according to Experian data. The average lease payment was $531 a month in the same period.

How much should I spend on a car if I make $40 000?

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.

Why is my car payment so high?

Your monthly car loan payment is largely affected by your loan amount, interest rate and loan term. Your credit, debt and income can play a key role in determining your overall loan cost, so it's important to know your current credit and take steps to improve it, if necessary.

What is too high of a monthly car payment?

Financial experts recommend spending no more than 10% of your monthly take-home pay on your car payment and no more than 15% to 20% on total car costs such as gas, insurance and maintenance as well as the payment. If that leaves you feeling you can afford only a beat-up jalopy, don't despair.

How much car can I afford for $300 a month?

Depending on your credit score, you're looking at a quality used vehicle between $8,000 and $12,000.

Is it possible to pay $100 a month for a car?

That means you'll have to find a car that depreciates less than $3,600 over a three-year term, has a low interest rate in the lease terms (called the money factor in leasing), and has very low fees to create a lease with average payments of $100 per month.

Can a couple live off 70k?

However, in general, a salary of $70,000 a year can provide a comfortable lifestyle in many areas of the United States. This may include being able to afford a modest home or apartment, a reliable car, regular entertainment and dining out, as well as savings for retirement and emergencies.

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

Starting with the 1/10th guideline, created and pushed by Financial Samurai, this guideline states: buy a car in cash that costs less than 1/10th your gross annual pay. If you make $50,000 you should buy a car in cash worth $5000. If you make $100,000, the car you buy should be worth no more than $10,000.

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.

What is a good down payment on a 30k car?

Consider putting at least $6,000 down on a $30,000 car if you're buying it new or at least $3,000 if you're buying it used. This follows the guidelines of a 20% down payment for a new car or a 10% down payment for a used car.

What car can I afford making 50k a year?

How much car can I afford if I make $50,000? While it depends on factors like your credit score, loan terms, down payment and any potential trade-in value, you may find that a vehicle in the $20,000 to $35,000 range will fit your budget.

How much to afford a 60k car?

Assuming a 60-month loan with a 4% interest rate, your monthly car payment would be around $1,073.33. To afford this, you would need to have a gross income of at least $53,666.67 per year. Unless you use a different financing method like a Savings Club.

Is 2023 a good year to buy a car?

Car prices were high in 2023, and financing rates were expensive. Buying a car in 2023 wasn't good for many people's personal finances.

Is $500 a month a high car payment?

If you're looking for a few tips on managing a high car payment, you're not alone. The average monthly car payment is now a record $733, according to Edmunds. And even if your monthly auto loan payments are around $500 per month, that still may be uncomfortably high.

Will car costs go down in 2023?

It left many shoppers scratching their heads, and the question our experts get most is, “When will new car prices drop?” We can tell you that new vehicle price inflation had disappeared by the end of 2023. That's great news on its face. However, car prices have increased exponentially in the past three years.