Most financial experts agree that your car expenses (monthly payment, insurance, fuel, taxes, routine maintenance and so forth) should be no more than 15 to 20% of your net income.
In our $3,300 example that works out to a maximum of $500 to $660 per month.
- 1 What can you afford with 60k salary?
- 2 How much do I need to earn to afford a car?
- 3 How much should I spend on a car if I make 50000?
- 4 What car can I afford with 40k salary?
- 5 What is a good down payment on a car?
- 6 Is 70k a good salary?
- 7 Is 60k a good salary?
- 8 Is 70k a good starting salary?
- 9 What is the minimum income for a car loan?
- 10 What monthly car payment can I afford?
- 11 What car should you buy based on salary?
What can you afford with 60k salary?
The usual rule of thumb is that you can afford a mortgage two to 2.5 times your annual income. That’s a $120,000 to $150,000 mortgage at $60,000. You also have to be able to afford the monthly mortgage payments, however.
How much do I need to earn to afford a car?
According to this rule, when buying a car, you should put down at least 20 percent, you should finance the car for no more than 4 years, and you should keep your monthly car payment (including your principal, interest, insurance, and other expenses) at or below 10 percent of your gross (i.e. pre-tax) monthly income.
How much should I spend on a car if I make 50000?
Expert estimates range broadly. Greg McBride, a senior 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. But for many of us, it should be lower.
What car can I afford with 40k salary?
Rules of Thumb
The general rule of thumb is that you should not spend more than 20% of your monthly take-home pay on cars, according to Edmunds.com (via Bankrate). So if your after-tax monthly income is $4,000, your total cost of car ownership for ALL of the cars you own should not exceed $800 under this rule.
What is a good down payment on a car?
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. Benefits of making a down payment can include a lower monthly payment and less interest paid over the life of the loan.
Is 70k a good salary?
the national average income is not important. you live in a major metro area. 70k does not go as far in Dallas, TX as it does in Roaring Springs, TX.
Is 60k a good salary?
In most parts of the US you already have access to a very good and healthy life at 60k. According to the 2008 US Census, making 60k a year is in the top 20%. I pretty much agree, especially with the idea that humans are creatures of comparison.
Is 70k a good starting salary?
So, mean or average salaries can make it look like “average” Americans earn more than they actually do. U.S. median household income is released by the U.S. Census Bureau each September for the previous year. By that standard, $70,000 is a good salary.
What is the minimum income for a car loan?
Minimum Income Requirement: All lenders require you to make a certain amount every month. While it can vary, the typical monthly minimum income requirement many special finance lenders have is $1,500 to $2,000 before taxes are taken out.
What monthly car payment can I afford?
Car Affordability Calculator FAQs:
How much can I afford for a car payment? Everyone’s financial situation will vary, but as a general rule, your car payment should be no more than 15 percent of your monthly take-home pay. If you’re leasing, it should be no more than 10 percent.
What car should you buy based on salary?
According to the 36% rule, it isn’t wise to spend more than 36% of your income on loan payments, including car payments. Another rule of thumb says that drivers should spend no more than 15% of their monthly take-home pay on car expenses.
Photo in the article by “Flickr”