A good rule based on how banks and lenders view financing is to try to pay **no less than 20% of the sale price for new cars** (they have a much higher value so typically the loan is a lot bigger) and then 10% down for used cars.

## How much car can I afford with my salary?

Financial experts recommend that your monthly payment should be around 10% to 15% of your monthly take-home pay. Additionally, your total monthly car expenses should be **no more than 20% of your monthly income**, and this includes your car payment, insurance, maintenance and gas.

## How much income do you need to make to finance a car?

Every lender has different requirements for how much money you need to make, but a general rule is about **$1,500 per month**. Shop around with lenders to find one willing to approve you, as well as to discover the best interest rate possible.

## How much should you have to finance a car?

There’s no perfect formula for how much you can afford, but our short answer is that your new-car payment should be **no more than 15% of your monthly take-home pay**. If you’re leasing or buying used, it should be no more than 10%.

**How much can I finance a car for? – Related Questions**

## What car can I afford with 75k salary?

If you make $75,000 per year, your total loan payments shouldn’t exceed **$2,250 per month**. 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.

## What car can I afford 70k?

Some experts believe that spending **50% of your salary** on a vehicle should be affordable. With a salary of $75k this would give you $35,000 to spend on a car which is enough for a brand new car.

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

Is $500 Too Much for a Monthly Car Payment? **Paying $500 for a car loan monthly payment in 2019 would definitely have been too much**. But in 2022, when the average monthly payment is $648, consider yourself lucky if you have just $500 to pay!

## What’s the 50 30 20 budget rule?

Key Takeaways

The rule states that **you should spend up to 50% of your after-tax income on needs and obligations that you must-have or must-do**. The remaining half should be split up between 20% savings and debt repayment and 30% to everything else that you might want.

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

How much should I spend on a car if I make $60,000? If your take-home pay is $60,000 per year, you should pay **no more than $750 per month** for a car, which totals 15% of your monthly take-home pay.

## Is 800 a month a lot for a car?

Experts say your total car expenses, including monthly payments, insurance, gas and maintenance, should be about 20 percent of your take-home monthly pay. For non-math wizards, like me – Let’s say your monthly paycheck is $4,000. Then **a safe estimate for car expenses is $800 per month**.

## 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.

## How much should I spend on a car if I make $100000?

Many lenders approve car loans (and refinance loans) with a DTI around 50%. To find out how much car you can afford with this 36% rule, simply multiply your family’s income by 0.36. So if you earn $100,000, for example, you could afford to take out a car loan of **up to $36,000** — assuming you don’t have any other debt.

## How much should I spend on a car if I make $40 000?

Follow the 35% rule

Whether you’re paying cash, leasing, or financing a car, your upper spending limit really shouldn’t be a penny more than **35% of your gross annual income**. That means if you make $36,000 a year, the car price shouldn’t exceed $12,600. Make $60,000, and the car price should fall below $21,000.

## What credit score is needed for a 50k car loan?

What Is the Minimum Score Needed to Buy a Car? In general, lenders look for borrowers in the prime range or better, so you will need a score of **661 or higher** to qualify for most conventional car loans.

## How much a month is a 40k car?

For $40,000 loans, monthly payments averagely range **between $900 and $1,000**, depending on the interest rate and loan term.

## How much is a 35k car payment?

$35,000 Auto Payment Chart

Auto Loan Details |
1 Year |
2 Years |

**35000 at 2.5%** |
**2,956.31** |
**1,496.61** |

35000 at 2.75% |
2,960.30 |
1,500.48 |

35000 at 3% |
2,964.28 |
1,504.34 |

35000 at 3.25% |
2,968.27 |
1,508.22 |

## How much should I put down on a 25k car?

The Vehicle’s Price Determines How Much Cash You Should Put Down

Vehicle Price |
**15% Down** |
25% Down |

$25,000 |
$3,750 |
$6,250 |

$30,000 |
$4,500 |
$7,500 |

$35,000 |
$5,250 |
$8,750 |

$40,000 |
$6,000 |
$10,000 |

## How much is a 30k car payment?

With a loan amount of $30,000, an interest rate of 8%, and a loan repayment period of 60-months, your monthly payment is **around $700**.