How Much Car Can I Afford? (Use This Simple Rule to Find Out)

A car is designed to get you from point A to point B, and while it might be nice to do that in style, affordability is a better option.

Big-ticket purchases such as homes and cars go beyond what you can just afford monthly, because there are layers and other expenses to consider.

Ideally, the best rule to follow when buying a car is the 25% gross salary rule, since it is 100% based on what you make each year.

Affordable Monthly Car Payments

Before you ever set foot on a car lot or hop on to a car buying website, be sure to set your budget.

Set a car budget

The biggest car-buying error most people make is not considering all of the other car expenses that go with purchasing a new car.

Don’t forget about the “Other” car expense

Whatever you do, be sure to never buy brand new cars no matter how much you really want one.

Do your best to avoid brand new cars

Keep in mind that it is just a car and by keeping your car expenses low – you can do other things like pay off student loans, save for retirement or purchase a home!

Don’t get caught up with car envy!

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