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.
How much should I spend on a car if I make 30000?
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 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 average car payment?
The average monthly car payment on a new vehicle in 2017 was a hefty $479, and as of 2016, the average car loan was a whopping $30,032 with an average length of 68 months — that’s over five and a half years! Interest rates on auto loans are also rising and will cost you well over 4 percent annually on average.
Photo in the article by “National Park Service”