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Sample budget for 100k salary car person4/15/2024 ![]() Fits into your lifestyle: Think of the functions you need/want out of your car.Think about safety, and your family size now and in the near future when thinking of your car needs. If you are a single male (or female), you may prefer something flashier and faster. If you have small children that you have to climb in to get situated in the car, you may want a minivan or other vehicle that is easily accessible. Fits your needs: The size of your family and the age of your children may play a role.If the car will be your main mode of transportation, you'll need to consider the following factors: "Oftentimes when looking to get a new car, people don't think about their credit score, but it can make the difference in what car you can afford because of the interest rate."īelow we'll teach you how to set reasonable expectations to save money. You can find deals on new cars and used cars to research how much vehicles really cost in your area. Instead of overspending at a local dealership, consider checking prices online. This includes the principal and interest on the loan, plus monthly insurance expenses. The 20/4/10 rule: Put down 20% on a car, finance the car for no more than 4 years, and keep your car payment less than or equal to 10% of your salary.If you make $75,000 per year, your total loan payments shouldn't exceed $2,250 per month. This includes your mortgage, car loan, personal loans, student loans, and minimum credit card payments. The 36% Rule: With this rule, your total loan payments shouldn't take up more than 36% of your salary.This rule may only work if you need a car to literally get from Point A to Point B. That's probably not feasible for the average driver. ![]() If you make $50,000 per year, that means you can spend $5,000. 10% of your salary: If you want to be frugal about buying a car, stick to 10% of your annual salary. ![]() These rules may work better for your lifestyle. You may stretch your budget outside of its limits. But if you think about it, taking up 20% of your income just on your car payment leaves 80% for everything else.Ĭonsider your mortgage, consumer debt, medical expenses, food, utilities, and the daily cost of living. Once you have a budget, you'll need to find a price range you can afford. At the minimum, you should at least visit CarsDirect for deals on new cars and used cars to get a better idea on how much vehicles really cost in your area. You can stretch your buying power by finding the best discounts before going to your local dealerships.
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