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Is a $700 car payment too much? - Quora. Yes and **no**. If you are buying an expensive car and you can afford the payments that's normal. But if your buying a cheaper vehicle then yes that would be pretty high payments.

Experts say your total car expenses, including monthly payments, insurance, gas and maintenance, should be about 20 percent of your take-home monthly pay. ... Then a safe estimate for car expenses is **$800 per month**.

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**.

Your total car monthly payment (interest, principal, sales tax, and insurance) should **not exceed 10% of your gross monthly income**. This is sort of a more granular version of the 35% rule. The 35% (or less) rule gives you a general budget to plug into the search filters on Carmax, Edmunds, etc.

A $500 car payment is **about average right now**. The concept of “too much” is going to depend on your income and living expenses, your insurance expense, and other budget factors.

To cut to the chase, it's smart to spend **less than 10% of your monthly take-home pay** on your car payment, so you can keep your total car costs below 15% to 20% of your income. That might leave you feeling you can afford only a beat-up Yugo. But there's an interesting caveat to this rule of thumb.

When it comes to a down payment on a new car, you should try to cover **at least 20% of the purchase price**. For a used car, a 10% down payment might do. Part of your decision will depend on where your credit score stands.

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).

Dave Ramsey takes a balance sheet approach. Rather than looking at monthly transportation costs, Dave recommends buying **cars that cost no more than 50% of your annual income**. So if you make $50,000 a year, you should not spend more than $25,000 for a car(s).

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.

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**. For those with a salary near $30,000 your home, car, and debt combine should be no more than $1,250 per month.

What is the average car payment? As of 2021, the average monthly car payment in the U.S. is **$575 for new vehicles** and $430 for used vehicles.

With no other bills, you can afford a $40k car with a yearly income of **$12,000**. But if you do have other bills ( ie wife and children and a mortgage and student loans) then consider your bills and decide if you can afford a new car. In my opinion it would be insane to spend more than 10% of your wealth on a car.

If you only earn $20,000 a year, it gives you a budget of **$7,000**. That's not a lot, but it's definitely enough to buy an older, yet still reliable, used car. ... That will buy a wide range of brand-new cars, including luxury models.

So, to afford a $60,000 new car, you need to make **around $90,750 a year**.

Because the upfront cost of a vehicle isn't going to be the only thing you pay for, and cutting down your base price budget is the most effective way to save money. If you make the median per capita income of about $42,000 a year, for example, you should limit your budget to **$4,200**.

First unveiled at the NAMPO agricultural show in 2017, **the Bajaj Qute** has set social media alight more recently with stories, memes, jokes and videos about this compact little 'car'. The story goes that you can buy it for only R5 000, that it will only cost you R150 per month and that you can insure it for only R1. 20.

“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.

“It's actually a split, but **in most cases, dealers will gladly take your money**. Without getting into the jargon behind it, the time value of money states that money in hand now is worth more than in the future due to inflation. Therefore, a big down payment will usually cause a salesman's eyes to light up.

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).

You have to look at the overal status of your finances. a car pyament should be no more than 10% of your take home pay. So unless you're taking home more than $4500/mo, **$450 is too much for a car payment**.

**Nothing is too much for a car if you are passionate about it**. You might think of using the 35000 in other useful ways or invest it.

What is the 50-20-30 rule? The 50-20-30 rule is a money management technique that divides your paycheck into three categories: **50% for the essentials, 20% for savings and 30% for everything else**.

Payments can be $1k per month on a $60k car. You would have to make **$120k net per year** to afford up to $60k worth of cars. Here is my formula: Take the $120k net per year income and divide it by 12 and you get $10k.