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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.

For $40,000 loans, monthly payments averagely range **between $900 and $1,000**, depending on the interest rate and loan term. With an interest rate of 6% and a down payment of $2500, your monthly payment for a $450,000 car loan over a term of 72 months will be $7,859 per month.

'Never spend more than this much of your income on a car,' says millionaire finance expert - 10% of gross salary - Someone earning **500k a year** can afford a 50k car.

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.

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

Your new loan amount would be $25,000, your monthly payment would be **$452**, and you'd pay $2,113 in total interest charges.

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

For instance, using our loan calculator, if you buy a $20,000 vehicle at 5% APR for 60 months the monthly payment would be **$377.42** and you would pay $2,645.48 in interest.

“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.

If you're buying a $30,000 car and make a 10% down payment, the down payment would be $3,000 at the time of sale. ... As a general rule, aim for **no less than 20% down**, particularly for new cars — and no less than 10% down for used cars — so that you don't end up paying too much in interest and financing costs.

A good starting point is 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. ... Then a safe estimate for car expenses is **$800 per month**.

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.

“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.

With a loan amount of $30,000, an interest rate of 8%, and a loan repayment period of 60-months, your monthly payment is **around $700**.

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.

Auto loans over 60 months are not the best way to finance a car because, for one thing, they carry higher car loan interest rates. ... Experian reveals that **42.1%** of used-car shoppers are taking 61- to 72-month loans while 23% go even longer, financing between 73 and 84 months.

How much house can I afford if I make $200K per year? A mortgage on 200k salary, using the 2.5 rule, means you could afford **$500,000 ($200,00 x 2.5)**. With a 4.5 percent interest rate and a 30-year term, your monthly payment would be $2533 and you'd pay $912,034 over the life of the mortgage due to interest.

Ergo, **buying a car is a waste of money**. While it is true that once a car is registered for the first time, it becomes a used car and is worth less money, very few people buy a new car and immediately sell it. If you keep a car for a number of years, the depreciation will even out with time.

One simple rule you could apply to your car purchase is spend **no more than 30% of your annual income on the vehicle** of your choosing. This allows your budget to be flexible enough to cover the additional costs of maintenance, insurance and other expenses.

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**.

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.

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. Then there is the part about how many months or years you will have to pay that $500. Yes.

As a general rule, you should pay **20 percent of the price of the** vehicle as a down payment.

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.