How much should you spend on a car if you make 80k a year?
The frugal rule: 10\% of income For many people, I think that will be between 10–15\% of your income. So if you earn $25,000 a year, that’s going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that’s a used car for around $10,000 or $12,000.
How much should you be making to buy a 50k car?
‘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.
How much money do you need to afford a new car?
That leaves $72,268.75 per year, divided by 12 is about $6022 per month. So, to afford a $60,000 new car, you need to make around $90,750 a year. At least, I would. Your situation will almost certainly be different. Now, remember that this only applies to NEW cars.
How much does it cost to pay off a 100 000 car?
Doing the math that means that for a $100,000 car, you should pay at least $20,000 upfront, leaving a balance of $80,000 in principle to pay-off, tack on the interest, and the outstanding balance that you’d have to pay goes up to $84,008. $84,008/48 months= $1,750.17 for the monthly payment.
What salary should I have to buy a 100K car?
Originally Answered: What salary should you have to buy a 100k car? The 20/4/10 rule (down payment = 20\% of car’s value, finance period = 4 years, principal + interest + insurance + license + registration + gas + maintenance = 10\% of one’s gross monthly income) is commonly mentioned when giving car buying advice.
How much should you put down when buying 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.