: Aim to keep your monthly car payment at or below 15% of your take-home pay .
: A stricter variation requiring a 20% down payment, a 3-year loan term, and limiting payments to 8% of your gross income. Total Cost of Ownership (TCO) how much should i buy a car for
The sticker price is only one part of the financial impact. When calculating what you can afford, you must include: Car Affordability Calculator: How Much Car Can I Afford? : Aim to keep your monthly car payment
Financial experts recommend several "rules of thumb" to keep your car affordable: When calculating what you can afford, you must
To determine a responsible budget for a car, you should evaluate your monthly take-home pay and factor in all ownership costs beyond just the purchase price. As of early 2026, the average new car in the U.S. costs approximately , while used cars average around $25,393 . Core Budgeting Rules