What percentage of your monthly net income should you spend on a car payment?

[CrazySerbian]

Doesn't include insurance, gas, maintenance.

[RobParks2M]

35.0%

[CougarP01]

35.1%

[RobParks2M]

35.1%

^If this is what the Jones' are paying for their car then you gotta go 36%

[Aethelings]

LOL, i have a bike.

[friesbruh]

inb4 Ramseycells

[eternalone423]

the max is 20%

But in America, we buy Rolls Royce Cullinan.

[Agepilll]

0. buy in cash and that's it.

[Barcode120x]

My car payment was like around 3.5% or so with the assumption and idea of paying it off ASAP in which I did in 2.5 years. Would have paid it sooner but held onto the lumpsum throughout most of covid just in case my family or I needed it. Imo, monthly payment shouldn't matter, but you should pay off the car as soon as you can.

[righteousreason]

less than 3%

[TryingBB]

Not sure if srs

That would mean a $180 car payment on a $110,000 salary

Nothing wrong with that

[righteousreason]

Not sure if srs

That would mean a $180 car payment on a $110,000 salary

buy a used car cash and amortize over 15 years and you can get lower than $180. I'm a little over $100/mo after 10 years on my honda by that calculation.

[RobParks2M]

These threads are funny AF errytime. Not sure why people try hard about driving povertymobiles and acting high n mighty. @OP I've been in the 10% range before I paid my truck off. Truthfully I ended up with something more expensive than I expected to get, but I didn't want to buy a 2-3 year old truck because I had a high income w/ 0 savings. I really wanted a warranty on my vehicle so I got a new one. I could have tried going cheap and just driving a beater car around, but I enjoy my weekends and my toys. You only live once and the experiences I've had because I had a capable truck to haul me around with my toys has totally been worth it. My weekends are better than most people's vacations

[Huyistic]

currently spend 6%

[TryingBB]

I drive a 2014 sonata

Chick drives a 2015 merc (and me on weekends or if I’m not at work)

Both been paid off for over 3 or 4 years. Can’t remember.

Time to change and I don’t wanna do it cuz those monthly payments suck ass. I’ll prolly take hers and she can get a new one which we both use on weekends.

0% is better IMO

[Harry362]

$300/month

2.5%

Only owe $7200 on my 2017 Dodge Ram big horn hemi edition



My wife’s payment is more $455/month she has about same income

[dawktwenty]

There is no right answer here. Everyone is different. Some spend a lot of time in their car and really want to enjoy it. Others, DGAF but might spend money on other materialistic things. Everyone is different.

[WoofieNugget]

Currently spend about 7%, but it's also a 0% loan so I'm not that sussed about the payments.

[AccountingMajor]

Depends on how much you drive and relative to your income.

Rule of thumb.
If you commute, you don't really need a car, but you should have one to go to grocery store. Cheapo car is decent choice since you don't need it to go to work.

If you drive more than 60 miles a day. It might make more sense to lease the car or buy it new. Gas will be around $120-$150 a month alone.

If you work close by, it makes sense to buy used vehicle or buy new. If you plan to stay, buy used. If you plan to job hop, buy new since you won't know how far your next job could be.

[tripod29]

If you are making monthly car payments I got some really bad news for you....

[dizzin9]

Doesn't include insurance, gas, maintenance.

Ferrari.

[monty097]

If you can afford to, do cash.