So, when pressed, I would say spend up to 35% of your annual income on a car. This covers most bases. If you only earn $20,000 a year, it gives you a budget of $7,000. That’s not a lot, but it’s definitely enough to buy an older, yet still reliable, used car.
Subsequently, What mileage is good for a used car?
What Is Good Mileage for a Used Car? Mileage will vary between vehicles, but a decent rule of thumb to follow is that people drive an average of about 12,000 miles a year. Therefore, 120,000 miles would be a good mileage for a used car that’s about 10 years old.
then, What car can you afford with 60k salary?
How Much Should I Spend on a Car If I Make $60,000 a Year? You should spend no more than half of your yearly salary on a car, so if you make $60,000 dollars per year, you should buy a car that costs $30,000 or less.
Thereof How much should you make to buy a car? A good rule of thumb is that the price of the car should be no more than 30% of your annual gross salary, and your monthly car costs no more than 10%.
How much car can I afford on 50k salary?
Dave Ramsey takes a balance sheet approach. 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).
19 Related Questions Answers Found
What used cars NOT to buy?
30 Used Cars Consumer Reports Gave the ‘Never Buy’ Label
- Chrysler Town & Country. Chrysler’s new minivan will hopefully rate better than Town & Country. …
- BMW X5. 2012 BMW X5 | BMW. …
- Ford Fiesta. Compact cars by Ford had a bad run between 2011 and 2014 | Ford. …
- Ram 1500. …
- Volkswagen Jetta. …
- Cadillac Escalade. …
- Audi Q7. …
- Fiat 500.
Is it OK to buy a car with 100K miles?
No, in most cases, buying a car with 100K miles is not a bad idea. In fact, there are a number of benefits to buying a high-mileage car. For example, cars with 100K miles cost less to purchase, register, and insure, all while depreciating slower than low-mileage cars.
Is a car with 200k miles worth buying?
Typically, putting 12,000 to 15,000 miles on your car per year is viewed as “average.” A car that is driven more than that is considered high-mileage. With proper maintenance, cars can have a life expectancy of about 200,000 miles.
Is 60k miles a lot for a car?
Theoretically, a vehicle that has covered more miles has more wear and tear, but a car with 60,000 miles on the odometer can easily be in worse shape than one with 120,000 miles. … Overall, a high-mileage vehicle that is driven frequently and has been well-maintained will be a more reliable bet.
How much should you put down on a $12000 car?
The vehicle’s price determines how much cash you should put down
| Vehicle Price | 15% Down | 25% Down |
|---|---|---|
| $12,000 | $1,800 | $3,000 |
| $14,000 | $2,100 | $3,500 |
| $16,000 | $2,400 | $4,000 |
| $18,000 | $2,700 | $4,500 |
What is a high car payment?
According to experts, a car payment is too high if the car payment is more than 30% of your total income. Remember, the car payment isn’t your only car expense! Make sure to consider fuel and maintenance expenses. Make sure your car payment does not exceed 15%-20% of your total income.
What is the minimum income for a car loan?
There’s no universal minimum monthly income for a car loan because it varies by lender, but most require you to make at least $1,500 a month before taxes.
How much should I spend per month on a car?
In general, experts recommend spending 10%–15% of your income on transportation, including car payment, insurance, and fuel. For example, if your take-home pay is $4,000 per month, then you should spend $400 to $600 on transportation. To be sure, that range is simply for guidance.
What car has the cheapest monthly payment?
7 New Cars With Low Monthly Payments for 2019
- Kia Soul. The Kia Soul is one of our favorite subcompact crossovers and it’s all-new for 2020. …
- Toyota Yaris. The Toyota Yaris subcompact sedan is Toyota’s most affordable model starting at less than $16,000. …
- Honda Fit. …
- Hyundai Elantra. …
- Fiat 500. …
- Chevrolet Spark.
How much is a car payment on a $30000 car?
So, for example, if you’re looking at a $20,000 car, the payments will be roughly $400 a month. A $30,000 car, roughly $600 a month.
What car can you afford based on 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).
What car brand has the most problems?
The most unreliable cars
- Kia Picanto (2017-present) …
- BMW X6 (2014-2019) …
- Nissan X-Trail (2014-present) …
- Vauxhall Insignia Grand Sport (2017-present) …
- Mercedes C-Class (2014-present) …
- Nissan Qashqai (2014-2021) …
- Jaguar XJ (2010-present) Reliability rating: 86.6% …
- Ford S-Max (2015-present) Reliability rating: 86.5%
What’s the worst car brand?
The Automobile Study 2020-2021 is part of a much broader set of studies that query 500,000 people on 400 companies across 56 industries and sectors. The car brand with the lowest score was Chrysler at 70, down 4% from last year.
What is the most reliable car brand?
- 1: Lexus – 98.7% Lexus claims the top spot as the most dependable brand; its cars suffered very few faults and virtually all work was done for free. …
- 2: Dacia – 97.3% …
- =3: Hyundai – 97.1% …
- =3: Suzuki – 97.1% …
- =5: Mini – 97.0% …
- =5: Toyota – 97.0% …
- 7: Mitsubishi – 96.9% …
- 8: Mazda – 95.9%
Should I buy a car with 120k miles?
The average ten-year-old car should have around 120,000 miles on the odometer, anything significantly more or less could indicate trouble brewing. … These cars, as well as those of real estate agents and travelling sales representatives, are usually well-maintained and kept in good repair.
Is 80k miles a lot?
Ideally, you will want to choose something under 80,000 miles and take reliability into account. For example, a reliable vehicle like a Honda Civic with 50,000 miles may be a better purchase than a Ford Taurus with 30,000 miles of the same year or age.
What is the best high mileage car to buy?
10 Best Cars for High Mileage Driving
- Honda Accord.
- Toyota Camry.
- Subaru Outback.
- Toyota Avalon.
- Nissan Maxima.
- Subaru Legacy.
- Honda Civic.
- Toyota Prius.
At what mileage do cars start having problems?
Generally, vehicles are likely to start experiencing problems after the 100,000-mile mark. Also, in most cases, they no longer have a valid manufacturer’s warranty, meaning you have to pay for repairs out of your own pocket when something goes wrong.
Can a car last 500000 miles?
Today a million miles, or even 500,000 miles, is still extremely unusual for a vehicle. … Consumer Reports, through its annual questionnaire, has found that thousands of people have gone over 200,000 miles in their original vehicles without catastrophic failures or major repairs.
How many miles is too many for a new car?
The general rule, though, is that anything under 200 miles is acceptable for a new car. That allows enough capacity for transport from the shipping port or between dealerships if the car has to be sent to a new showroom. It’s also unlikely that the car would suffer any technical issues with fewer than 200 miles.
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