Table of Contents
What is a good annual income for a car?
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.
What car can I afford with my salary?
The rule of thumb among many car-buying experts dictates that your car payment should total no more than 15\% of your monthly net income, sometimes called your take-home pay (some might stretch this to 20\%, but 15\% is more conservative and therefore likely to make budgeting even easier).
How much money should you make a year to buy 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.
How much is insurance on a 100K car?
CALIFORNIA AUTO INSURANCE RATES BY COVERAGE LEVEL
| Coverage Level | Average Annual Premium |
|---|---|
| $100K/$300K/$100K Bodily Injury/Property Damage — Liability-Only | $802 |
| $100K/$300K/$100K Bodily Injury/Property Damage — $1,000 Comprehensive/Collision | $1,527 |
How much car can you afford to buy?
The above car affordability calculator uses a conservative but solid assumption about how much car you can afford. Whether you’re paying cash or financing, the purchase price of your car should be no more than 35 percent of your annual income.
How much does it cost to repair a 10-year-old car?
While the average 10-year-old car may cost $600 a year to repair, the average Mercedes-Benz costs more than $1,500 a year to keep running at that age, and the average BMW about $1,300. Even older Minis ring up more than $1,000 a year in repairs on average.
How much should you pay for a car based on salary?
It depends on how much income you have after your bills and expenses. But as a rule of thumb, your car payment should not exceed 15\% of your post-tax monthly pay. For example, if after taxes, you make the U.S. median income of $37,773, you could shop for a car that costs up to $472 per month.
What’s the best monthly car payment for You?
Though we’ve made the case for a monthly car payment that’s 15\% for a new car and 10\% for used or a lease car, that is really the top of the budget. If you’ve been approved for a $500-per-month vehicle, instead consider one that costs about $400.