When Should You Get A New Car Reddit??

If you’re not, my rule is usually 10 years/ 120k miles.

But I live in NY, and 10 years is usually inoperable rust territory, unless the car was meticulously maintained.

There is a point when most cars stop depreciating and their value is pretty much exclusively based on their condition.

This is usually around $5K.

What car can I afford Reddit?

The general rule of thumb is that you should not spend more than 20% of your monthly take-home pay on cars. So if your after-tax monthly income is $4,000, your total cost of car ownership for ALL of the cars you own (monthly payment, insurance, etc.) should not exceed $800 under this rule.

How much should I spend on a car?

How Much Should I Pay? Another rule of thumb says that drivers should spend no more than 15% of their monthly take-home pay on car expenses. So under that guideline, if your net pay is $3,500 a month, it’s best to avoid spending more than $525 on car costs.

How do you shop for a car?

How to Buy a New Car

  • Set your budget. Decide how much you can spend, what your monthly payment should be, and how you will finance your new car.
  • Choose the right car.
  • Check reliability and ownership costs.
  • Test-drive the car.
  • Locate your car.
  • Find the right price.
  • Get dealer quotes.
  • Maximize trade-in value.

What is auto gap insurance?

Gap insurance is an optional, add-on car insurance coverage that can help certain drivers cover the “gap” between the amount they owe on their car and the car’s actual cash value (ACV) in the event of an accident.

What MSRP means?

manufacturer’s suggested retail price

What car can I afford with 200k 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.

How much can I spend on a car Reddit?

25% is what you should be spending on housing, not a car. The conservative rule of thumb is total car expenses (payment, gas, insurance, maintenance, etc.) shouldn’t exceed 10% of gross income.

How much should my car payment be based on income?

It all starts with what we call the 20/4/10 rule, which says you should: Make a down payment of at least 20%. Finance a car for no more than four years. And not let your total monthly vehicle expense, including principal, interest and insurance, exceed 10% of your gross income.

How much should I spend on a car if I make 60000?

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.

What is the 28 36 rule?

The 28/36 rule states that a household should spend a maximum of 28% of its gross monthly income on total housing expenses; it should spend no more than 36% on total debt service, including housing and other debt such as car loans.

How much should I spend on a car if I make 30000?

2. Honestly assess your vehicle budget. If you make $40,000 a year, don’t think you can afford a $30,000 car. Your total car expenses — payments, insurance, gas and maintenance — shouldn’t rise to more than 20 percent of your take-home pay.

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