# What Car Can I Afford With 120k Salary?

## How expensive of a car can I afford based on salary?

When it’s time to buy a car, you’ll probably want to know: “How much car can I afford?” Financial experts answer this question by using a simple rule of thumb: Car buyers should spend no more than 10% of their take-home pay on a car loan payment and no more than 20% for total car expenses, which also includes things ….

## How much car can I afford on 50k salary?

Rather than looking at monthly transportation costs, Dave recommends buying cars that cost no more than 50% of your annual income. So if you make \$50,000 a year, you should not spend more than \$25,000 for a car(s).

## How much should I spend on a car if I make 200k?

Assuming the \$200k is before tax, then roughly \$120k after tax, equates to \$10k per month. Spending roughly 5% of monthly income on a car would not seem imprudent. If it’s \$200k after tax, then even less so. … So the car is almost half of one full years work.

## Is 400 a month too much for a car payment?

In a Nutshell The average car payment for Americans is \$568 a month for new cars and nearly \$400 for used cars. If you’re shopping for a vehicle, it’s a good idea to understand the breakdown of that cost so you can budget accordingly.

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

Some financial experts recommend setting your car-buying budget at half of your annual salary. If you look at the previous example of making \$5,000 monthly, that will equate to an annual salary of \$60,000. Half of that is \$30,000. According to this rule, you can spend up to \$30,000 on your upcoming car purchase.

## How much do I need to make to afford a 100k car?

At an interest rate of 3.33%/year and with a loan term of 4 years, one will need to make monthly loan payments totaling \$1,782.44. Assuming loan payments account for 60% of a car’s monthly expenses, in order to afford a \$100K car, one will need to gross \$29,707.33/month (\$1,782.44 / 10% / 60%) or \$356,488/year.

## Is 500 a month too much for a car?

The average new car payment in America has crept above the \$500 per month mark for the fist time, settling in at \$503, according to a recent study by Experian. And if that weren’t bad enough, the average length of a car loan now stands at 68 months.

## How much do you have to make to afford a Tesla?

If your household take home pay is 4K per month, you shouldn’t be spending more than \$1000 on car payments, insurance, fuel, and maintenance. So if your expenses are right about average, you can afford a Tesla 3 (\$45K) probably around 100K per year of income.

## How much do you put down on a car?

When it comes to a down payment on a new car, you should try to cover at least 20% of the purchase price. For a used car, a 10% down payment might do.

## How much should you put down on a \$12000 car?

The vehicle’s price determines how much cash you should put downVehicle Price15% Down25% Down\$8,000\$1,200\$2,000\$10,000\$1,500\$2,500\$12,000\$1,800\$3,000\$14,000\$2,100\$3,5009 more rows

## How much should I pay for a new car?

Using the dealer’s true cost formula, here’s an example of what you might pay for this car: \$31,000: the new car sticker price. \$29,000: the factory invoice price, which includes factory added options. Subtract \$870 for dealer holdback (presented here as 3 percent of the car’s MSRP, but this varies)

## How much do you need to make to afford a 70k car?

How much money do you need to make in order to afford a \$70k car? To buy a car in full (cash), you should make in a year, at least three times more than the price of the car. If you are leasing or paying a car note, than you should make in a year at least, four times the amount of 12 months car note or lease.

## What is too much car payment?

Whether you’re paying cash or financing, the purchase price of your car should be no more than 35% of your annual income. If you’re financing a car, the total monthly amount you spend on transportation—your car payment, gas, car insurance, and maintenance—should be no more than 10% of your gross monthly income.

## Can I get approved for a 30000 car loan?

In general, though, the higher your credit score, the better your chances of scoring a low interest rate and less restrictive loan terms. For example, if you have a good credit score, you may be able to finance \$30,000 for a new vehicle with a 3.99% APR over 60 months.

## How much do you need to make to afford a 40k car?

The average person at my store that buys a \$40k car makes \$100k-\$120k per year household income. They generally lease or finance the vehicle. I do have some customers that make \$80k buying a \$40k car but that is uncommon. I would suggest \$120k minimum before even considering it.