What are your general guidelines on how much money to spend on a car? Do you tend to find the car you want, and make it work with your budget? Or do you prefer to figure out how much to spend, and then look for cars at that point?
These are some of the various spending guidelines I've heard:
- no more than 10% of your monthly net income should go towards a car loan
- if you can't pay for it in cash, you can't afford it
- total value of your cars should be no more than 50% of your annual household gross salary
- total monthly debt should be no more than 33% of your monthly gross income
Just curious what others here think.
These are some of the various spending guidelines I've heard:
- no more than 10% of your monthly net income should go towards a car loan
- if you can't pay for it in cash, you can't afford it
- total value of your cars should be no more than 50% of your annual household gross salary
- total monthly debt should be no more than 33% of your monthly gross income
Just curious what others here think.