Here are some discussions on affordability.
https://www.bankrate.com/loans/auto-loa ... #determine
Experts typically recommend spending no more than 20 percent of take-home pay on a car. That should include the cost of car payments, fuel, insurance and more.
https://www.ramseysolutions.com/saving/ ... n-i-afford
The total value of all your vehicles shouldn’t be more than half your annual income. Why? Well, you don’t want too much of your wealth tied up in things that depreciate (or go down in value). And things with motors depreciate big time. So, make sure the car you’re looking at won’t push you over that line.
My personal rule of thumb --
Take the price of the car and divide by 5. If you're OK with spending that number annually, then you can afford the car. If you have multiple cars, you have to add them all when running the computation.
https://www.bankrate.com/loans/auto-loa ... #determine
Experts typically recommend spending no more than 20 percent of take-home pay on a car. That should include the cost of car payments, fuel, insurance and more.
https://www.ramseysolutions.com/saving/ ... n-i-afford
The total value of all your vehicles shouldn’t be more than half your annual income. Why? Well, you don’t want too much of your wealth tied up in things that depreciate (or go down in value). And things with motors depreciate big time. So, make sure the car you’re looking at won’t push you over that line.
My personal rule of thumb --
Take the price of the car and divide by 5. If you're OK with spending that number annually, then you can afford the car. If you have multiple cars, you have to add them all when running the computation.
Statistics: Posted by anoop — Fri Nov 01, 2024 1:14 am — Replies 77 — Views 2945
