How to afford a 50k car. Interest rates nowadays are so high.

How to afford a 50k car It's a simple math problem. Input down payment, going interest rate, prop taxes, HOA into calculator until you see that number That is the most you can afford Adjust regularly with each . Interest rates nowadays are so high. Buying electric car is not for everyone. Just like fitting the right puzzle piece, figuring out how much rent you can afford on 50k is the key to completing the financial picture. To determine how much you can afford for a car with great accuracy, follow these steps: Step 1: Figure Out How Much For example, if you bring home $50,000 per year after taxes, your monthly take-home pay is probably around $4167. need to consider other aspects na din and consider your budget in the long run if kaya pa din kahit may unexpected turn of events Already had a savings worth 6 digits and was planning to buy a car na this year but when my dad and I were doing the canvass, biglang nagkasakit both my parents na need pa operahan yung mom ko and naospital yung younger sister ko. You can afford this car (although I would challenge you to make sure you have as much leftover each month as you expect- clothes, haircuts, gifts, groceries etc are all budget line People in this thread all value cars differently. We used to be able to buy cars with our tax refund. You extend the car loan. people should only spend what they can safely afford on a car, and should focus on reliability/safety versus having the fanciest features. But you In my budget, if I squeeze, I can get about 2500 a month excess which is about 1 paycheck. ) How do you guys know if you can afford something like a new car, a house, rent, new phone, etc. . I didn’t have to take out a student loan for Compare that to the balance sheet approach, which only states I can afford a $50k car with a $100k annual income. After taxes thats around $600-650 a month. Also If you're financing a car at some rate over 5%, you're doing it wrong. Financing 6k is honestly laughable at your income and many banks won't even do it BUT if you insist, this is more than affordable. Do you think 17k could get us in that car or am I being dumb. What you can afford is relative to how much YOU make vs YOUR expenses. The interest and depreciation just seem like you’re burning money. How are new cars like Range Rover which cost £50k+ so common on the road and among neighbours? How are they able to afford such expensive cars? Most of these people seem like on reasonable "normal" salaries, maybe £40k to £80k but I $200k income here too. Let's expand on this: Choice A: You buy a nice car for $50k on a six year loan with a monthly payment of about $775, say a nicely equipped Audi A4. If I can't afford a decent car, seriously I might as well work part time at the local market and collect food stamps and walk with free medical. WHEN YOU CAN AFFORD TO! (I've known too many car guys buying mods on maxed out credit cards. More Maybe I am just not a car guy as you call it. If you can budget 40-50K per month for car and housing na, 110K to 120K will do. Yes, you can afford one. If having this car brings an immense amount of happiness to you and you can still keep the lights on comfortably while owning it, then do it. If you have higher expenses then you’ll need a higher income. 720+ credit score with previous history of financed cars =1. Based on the 10 percent recommendation, you could I Make $50,000 a Year How Much Car Can I Afford? If you make $50,000 a year, you can afford a $15,622. Amortization Schedule. For Use your monthly budget to estimate your maximum car price with our car affordability 26k car on a 50k salary is not a great idea. A cars value typically depreciates the most in the first 3 years of ownership. Hopeful he got a car when they were cheap so 300-400 a month on the car. Example, say a car loan 30 years ago averaged 4 years, and the car lasted 8 years, or double the life of the loan. Also have 100k+ in 401k and 50k in savings + stocks. How Much Money Do I Need To Make To Nothing wrong with wanting that $50k car, but hunting for that same car just a couple years used for significantly less will scratch that itch and the hunt can be super fun. I now had all that second income AND 400/month that I was paying on the car available. - into my housing budget. That said - There are a ton of variables between peoples lives. Standard personal finance advice says to spend no more than 10% of your monthly income on a car payment and less than 20% on combined auto expenses, including gas, insurance and maintenance. I left car sales to go into mortgage banking, and receive a base salary of 65K + commission / bonuses. Take another 50k out of savings and move it to investments, then go buy yourself a Toyota Camry. Can I afford a $120k car? I have about 3k a month left after all bills are paid. With a $100,000 salary, you could afford a mortgage payment of no more than $2,500. li/3w6nto📞 Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET or send Then look at your budget and see if that payment is something you can afford. If you want $50k cars, you better make sure you have $500k in your bank or house. more reply. The same New to workforce, just landed a job where I make over 50k a year before taxes, I think it's like 40k a year after taxes. So, be careful. Reply reply Wait if you can afford 4k a month and the car is still running why don’t you wait a few months save the extra money and then buy an even nicer used one in cash. It’s not a great idea to buy a $50k car for only impressing dates, but I got a $75k sports car that’s only used a few month out of the year lol. I would say at least 90-100k a year to be able to comfortably afford a car that price. And more importantly, you will get approved but your credit score will likely be pretty bad, so it's one of those situations where it could be that you look back in 3 years and wish that you had gotten denied, rather than getting approved at 16% APR or When I was under 30 and made under $100k. 17 car with monthly payments of $333. I have absolutely no fucking clue how people afford $50-60k cars without a big safety net For people with a "regular" income, a general rule of thumb is to try and keep your auto expenses under 1/3rd of your annual income. But you know a great way to still experience awesome cars is to just use Turo/rental cars like 1-2 weekends a month. You need 20% of the cost of the car in cash for a down payment. In wealthier ones, pretty much every home has multiple luxury cars. You can afford a $50,000 car with your income and assets. How much should you be making to afford a $50k car?original sound - Humphrey Yang. 67. You can afford a $14,594. Obviously I don't drive a 50k car and invest most of my money but I could go buy a Hellcat if I wanted. Some people take out 84 month loans. You'll thank me later Great advice for the average consumer, but completely un-realistic for a car guy to consider. That person gets a $10k/yr raise. Prices are going to go down as more new vehicles are available. If you want even more freedom in your monthly expenses, you should strive to spend less on a car than you can afford to spend. There's a big difference between someone making $50k a year buying a $12,500 car, and somebody making $50k a year spending $1000 a month on a car payment. So I was investing 500/mth. You’ll be shelling out 9k MA + 1K PMS monthly allotment + 1K Great point, there are many people that can afford luxury cars. 50: Down Payment: $0: Trade In Value: $0: Payoff Date: Aim to spend less than 10% of your take-home pay on your car payment and less than 20% on overall car expenses. Based on the 10 percent recommendation, you could A dream car for you can easily turn into 2 dream cars worth of “we can afford this you just got a car 100 times more expensive than this!” So I guess what I'm really asking is spending 30-50k on a car for 3 years worth it. What salary are people making that can afford $12k a year in car payments? To get an idea of how much car you can afford, a good rule of thumb is to pay no more than 35% of your annual pre-tax income. Cars to think about: Your doing this backwards. They have 1k-5k to lower the overall monthly payment of the car note by putting a down payment. How To Calculate The Highest Car Price You Can Afford. When calculating the total you can afford to spend on vehicle expenses each month, aim for a figure that equals (or falls below) about 20 percent of your take-home income. After failing twice, the car was put into a category that basically made it impossible to sell (could not even get a temporary license tag after a while). I bet there are others like me but I also bet there is someone making 150k per year and in their eyes they can only afford one car. I have a goal of having working be optional by 50 and while I can easily afford the car it will set me back regarding my goal Reply reply more reply. 500 car payment this month is better than a random 400 worn out job. That is the ‘fixed number’. If I was making 5x-10x the amount of the car, it might seem affordable. Reply reply 30% of your monthly income isn't 30k / 30% haha an example would be if you earn 50k a month then 30% of 50k would be 15k Reply reply 70k net is close to six figures depending on your state. This way, it's like you're starting a new clean slate with the car. Bonus points if the car has a full service record, but not all owners are great car owners, and not all are upfront and honest. Hell, you could comfortably afford a $100,000 car given what you've told us. I was making $50k at the time so it was on the limit of my affordability. Some people have trade ins that are worth $30,000. I'd save up cash for it though, no reason to go into debt for a new toy. That leaves $146. 1. Shop around for loans with better terms than the dealer may have. The only advice we have is to either earn $90,000 a year starting next month, or sell the car. That's just what my priorities are. 100%, I did exactly that at the beginning of this year, got a £50k car for around 20k, 4 years old but with 23k miles on the clock. That's why we have a bunch of scooters in this country. It’s your budget at the end of the day. I do have a job, my monthly income is 1,600 ( i do live with me parents it was either an apartment or a new car) but that’ll change since I’ll be working full time in the summer so I can put a 4-5k down payment on my car. Wed, Nov 20, 10 Undervalued Used Sports Cars You Can Actually Afford, According To Car Expert Doug Exotic Car Hacks Training System: Learn the strategies we use to get exotic cars without the fear of depreciation, maintenance nightmares, or even huge tax How can people with seemingly normal paying jobs afford premium cars that cost £50k-£100k? I don't understand. Do not impulse buy. A subreddit for discussing any aspect of credit scores. If you're financing a new car and struggling to make the payments, you're doing it wrong. Used a bit to invest here and there, sold when I thought was right and got my car. Then, my next goal was to save enough for a car. Income isn't even the largest factor, wealth (investment, property, business, etc) can be far more than that saved through income. As far as being able to afford a car, one of the generic pieces of advice you'll find is the 20/4/10 Rule which, unlike most borrowing advice, I think is actually a good, conservative basis. Most people I know who have one can't really afford them 70k is like 50k take home, let's say 40k to be super conservative. ed. 70k is just around 5800 per month. It might not have the freshest features but The cost of maintenance wasn't the issue with my last car, it was the cost of down time when no one could diagnose the issue that caused the car to fail OBD2 inspection. You clearly haven’t made $150k/year to think that affords you an $85k car. 08: Standard Monthly Payment (Principal & Interest): $312. Tesla’s weren’t always 50k either so at one point they were way more affordable. Just have your eyes open if you shop for used Mercedes. If you have a decent paying blue collar job and still live at home you can afford quite a bit. As far as financing goes, just be prepared to place a large downpayment on this car. My credit score is 750 due to my mom building my credit since I was in 8th grade. The reason is that buying an electric car is expensive, and if you are to emit CO2 instead, fuel cost is expensive as well. If you're putting a car above all other things, then maybe you could afford it, sure. I saved enough for a deposit for a house. Here are some tips that can help: 1: Don’t Forget About Added Costs Yep. What kind of cars can someone making around $100,000 afford comfortably? I really wanted those new C8 Stingrays, but it still seems a stupid amount of money even at this income. Prices are finally starting to stabilize again. Some people have huge I could have easily afforded a $50k car with my income (although I spent quite a bit less than that). General rule of thumb is your wheeled vehicles should not ever be more than half your income. So rather than cherry pick random anecdotes to fit a predetermined conclusion (i. Use our Use our free online Car Affordability Calculator to calculate how much you can spend on a car. Also, NYC here, and I’ve always cheated the 30% rule by folding in the fact that I have low to no transportation costs - no car, no car insurance, no repairs, etc. Some people don't buy new cars at all. 99% Apr at your local credit union. A 250k car isn’t going to Decide what you can afford monthly based on expenses. I keep like 20K USD sitting aside for surprise maintenance work. You still get to enjoy those cars (usually on weekends are free time for most ppl anyway) and the cost is WAY lower than owning one. Join our community, read the Can I afford a $50K car? Age: 28, single Income: $92k/year gross, $4,200/month takehome Rent: $1300/month Retirement: Max out Roth IRA/HSA, contribute 15% gross to 401k Savings: $136K in a HYSA Trading in my current car would get about $6000, bringing the OTD total with taxes to about $46,000. But if you are financing, you should also take into account your monthly expenses to ensure you don't over commit. Luckily we both bought new/used cars in the last 2 years so we won’t be buying in this current market. That doesn’t seem too extreme. Getting the car will hurt your debt to income ratio when you get a mortgage, and it will slow down your savings for the down payment. It wouldn't be the $50k: $5,000 – $7,500: $417 – $625: $80k: $8,000 – $12,000: $667 – $1,000: $100k: $10,000 – $15,000: $833 – $1,250: Using the 10-15% rule to understand how Not tryna be an asshole but at $120k you can’t afford a $50k car if you’re trying to be wealthy one day! That’s around $7. It will be used 80%+ for business, and sometimes for personal use like if my family travels for vacation somewhere. 33: Down Payment: $0: Trade In I am planning to keep this vehicle for at least 10 years. 1-2. But even in this crazy car market you should find many good cars/trucks for <$40k, so if you think your money is better off saving more for retirement or your children's college fund, then buy something cheaper. 💵 Start eliminating debt for free with EveryDollar - https://ter. And that's who we have on this sub. 5k a month after taxes, Car payment+gas+insurance is gonna run your car expenses to $1700+, almost a third of your monthly liquid. As long as the loans arent a crazy amount, id say under 50k total is manageable, it should be worth it because your degree should allow you to make the payments without too much trouble I would almost never recommend that people buy a 60k car. I think if people want a nice car and can afford it go ahead I say, such a decision needs to be made in the context of your broader financial strategy though. Seeing the monthly amortizations in ads and dealer websites make me question how people can afford monthly installments (most of them more or less 20k+). If it isn’t, then lower your car budget and see what you can afford. But most people don’t put a ton of wear and tear on them in that time. Seems like a pretty shitty, miserable way to live when you make more than 99. We advise purchasing a used car and keeping your payments under $150/month if you finance a vehicle. Planning to buy a car soon. Everyone has their hobbies, and if cars are yours, spend a little more when you can afford to. Now that I think it through a bit more it doesn't seem as crazy to me. After that, I'll be renting a place with my girlfriend. I could afford it, but it would cut into the money that I like spending on other things, like travel. How Much Car Can I Afford on $50K Income? Auto Loan Amount: $16,247. So, if you make $50,000 before taxes per year, your car purchase price should not exceed $17,500. Idea: spend half your car budget on a car. If you're leasing or buying NerdWallet’s car affordability calculator starts with the monthly payment you choose and shows you what loan amount you can afford, and We make it easy for you to calculate the maximum car amount you can afford based on your preferred monthly payment. If the starting salary is less than $115k, you can't reasonably afford this option. To me, cars are depreciating items that offer significantly diminished marginal returns (in terms of happiness). What car can I afford with 50k salary? Dave Ramsey takes a Imagine your monthly budget as a puzzle, and your salary of 50k as one of the crucial pieces. 6% and my credit is pretty good. That's 3300 a month so you can pay 1500 a month for total car cost (gas, insurance, payment), 800 for rent, 400 for food and still have 600 left over. 780 credit score and would still have great debt to income Check the Capital One auto navigator website and see what you get approved for. Decide what you can afford monthly based on expenses. But I have a really nice savings account and I could comfortably buy a 50k+ car right now and not miss the money, or be risking an emergency fund. and I don't even own a car. Share Add a Comment. A new car is a used car the moment you pay for it. Maybe a couple with good jobs and are beneficiairies of generational wealth. But a $3000 reliable car is hard to find or nonexistent now. If we were advising With a $50,000 annual salary, you could potentially afford a house priced between $160,000 to $190,000, depending on your financial situation, credit score, and current market conditions. How much car can I afford? Follow my 3 car loan steps!Check out LightStream Loans if you're looking to buy or refinance: http://bit. You should make at least how much the car cost and your expenses need to be very low. We should aim for a vehicle that offers reliability, efficiency, and affordability. People buying 50k+ cars, how do you afford that? Even making 100k/yr, a 50k+ car seems like a huge amount of money. For me personally I’d have to be a millionaire to comfortably afford to send my kids to private school at 50k a year. That’s a $36k with 0 apr over 72 months. Many people will find that purchasing such an expensive car really isn How do people afford 50K cars? 1. Thanks Example: somebody making $70k or ~$5,850, might easily afford a $500 car payment. So while on paper I’m maybe closer to 50% than 30% housing, I also don’t have a lot of expense categories that people in other cities have. You should only buy one if you make a lot of money or if you’re retired and don’t have any debts. Maybe I am being cheap idk. I get it, cars are a hobby. 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. Enter details about your income, Before making the investment to become a car owner, it’s important to figure out just how much car you can afford to buy. For example, if you bring home $50,000 per year after taxes, your monthly take-home pay is probably around $4167. I did and I don't regret it but I'm an outlier. Our old car is giving out and we don't have time to wait another month. Point being is some people will get a nice pricy car yet clearly don’t make enough to “reasonably” afford it, and others make plenty but go way below their potential spending potential. But it's what I wanted, you only live once and that is what I chose to splurge in. You want to have a good safety net of income last thing you Budget wise lease a 50K car or buy a used around 35k before downpayment. Stupid. While the above guidelines make it possible to find out how much car you can afford, that doesn’t mean that number should be your actual budget. Technically, you could "afford" one if you lived in a dump and put all your money on the car making even $150k a year. Cars are my passion, I spend as much of my free time doing various things concerning cars as I can. I can’t imagine parents with simply “good jobs” working middle management at Deloitte and Lockeed can comfortably pay 50k per year. 68 and on a 84 month note its $660. Some people buy really expensive new cars. Before you spend money, learn as much as you can about compound interest. Leasing slightly higher. I have the money saved but to buy a heavily depreciating asset at that price boggles me. I'm currently stable without any credit, live with my parents, and the only thing I spend on is pretty much food and clothes, and really want to get a 25k S2000 as it is my dream car and the value for it is rising. That has nothing to do with whether or not you can currently afford an $80k car. My brother has near flawless credit, and his interest rate is sub-1% despite buying at the peak of the Great Car Drought of 2020. There are a lot nice cars out there for 20-30k. A higher interest rate can He didn’t and when did anyone say it would be fancy he just wants a work vehicle that he can afford so don’t be slagging him if all he can afford if 50k 9 times out of 10 it’s 50k more then what you can afford The issue is that the car we want is 56k. the actual depreciation of the car may be slower than the estimated residual used to calculate the lease rate. If you know any old people selling cars, that's your best bet. 20/month for car insurance, gas, and car maintenance and repairs. 3. How much should I make to afford a 50k car? According to financial experts, if you want to afford a $50,000 car, you should have a monthly take-home income of at least $7,240. e. If you can buy the car without getting into debt, then that's the car that you can afford. Your housing payment will be a 1843 Likes, 121 Comments. 99% to 3. 5% rate increase to make sure your target home price is still accurate Prices for new and used cars went through the roof by summer of 2021. Financing it costs almost $1000 a month, not including the insurance or gas. Reply reply More replies More replies. M340i could be a decent choice as long as you get a very high trim level, but I doubt you can get a high enough trim level new, at 50k. I’d keep driving the beater until it literally dies. If you can comfortably pay rent, food, and save (if you’re at all) - no one should stop you from leasing or buying an 80K car. Which I live in a state with 1. Newer cars come with that included and a long warranty one can keep adding, so that is less of an issue. Is a $50k car expensive? A $50k car is considered expensive. Reply It's impractical to own a car earning less than £25K. Sort by: There's a difference between being able to afford a payment and being able to afford the car though. By contrast, a 65 year old with $1 million net worth, almost exclusively in real estate in a HCOL area they don't want to move away from, who is retired and with significant long-term healthcare needs, absolutely can NOT afford a $50k car. It just got to the point of ridiculousness That was 4 years ago. 06: Standard Monthly Payment (Principal & Interest): $333. Yes it is a stupid buy. IMO, if you have to save intensely for a year to buy something, you cant afford it. Well, in 2013 the new car went into the shop 6 Iconic Cars You Can Buy for $50K, According to Car Expert Doug DeMuro. Someone who earns $50,000 a year takes home $4,167 per month before taxes, which allows them to finance a little less than $21,000 at 5. 4K. Sure, the car it would have gotten me is way cooler than my current car, but my current car is more than adequate for my current needs and has You make $240k a year and are worried if you can afford a $50k car? Equally strange that you have a $700 mortgage, is that like a $150k house? How much car can I afford? comments. Rent puts you at 2. Compact cars often fit this bill, as they typically have lower price tags and better fuel efficiency. Using our Car Affordability Calculator, you can I’m curious if anyone wants to share generally how much they make and how many project cars they have. super cars depreciate much more on how many miles they're driven rather than how many months you've had them. Please ask questions and contribute to the knowledge surrounding credit scores. We do have a good second vehicle for our personal driving. You can easily afford a 20k car, unless your mortgage is insane and have other consumer debt thats out of whack. Other than that, buy car that will get you from point a to b the cheapest possible including using the public transportation or bike! Safe as much as you can So, theoretically, if your salary is $50,000 you could afford a car payment of $430 or less. The payment on an $85k car is double I bought a 50k outright on a 100k salary. This is if you get a car loan at a below-average rate and stretch out your payoff time for a long time. The total monthly cost (the monthly payment from #2, plus insurance) is no more than 10% of your gross monthly income. 50k car loan on 72 month note = $759. OP is very far behind on retirement, and is only netting less than 25% of I’m wanting to upgrade and cannot mentally justify spending even 50k on a car. There's no magic tricks here. Choosing the right car type on a 50K salary involves balancing our needs, preferences, and financial realities. If you use a good private mechanic who knows European cars you can save money on repairs. Routine maintenance, regular payment. 9% of the world’s population. I'd say $3-4k if you want something that's going to be reliable and last for a few years. Aim for a 3 year old car if you want to hit that balance of reliability and savings. Technically I could now afford a $55k car, but I It’s around 30k. car. 31 car with a $50,000 salary, which means you can afford about $312. My 22 year old brother makes about 50k a year, lives at home with the parents, basically no expenses except a way too expensive vehicle. Over 50k+ in checking account, 50k+ in stock market Currently driving a 2008 Honda Civic (200k miles) No debt Can you afford to purchase a new car? Sure you can. New Jersey. gov and look at the starting salary for your program. This is nuts dude don't jeopardize your parents retirement or your future for a degree that doesn't have a strong ROI. As far as your job, by that logic, you’ll never be able to afford anything for any cost because you’ll always be terrified of impending unemployment. People afford it by taking out loans. What car can I afford with 100k salary? So, theoretically, if your salary is $50,000 you could afford a car payment of $430 or less. The missing piece is that this is the MAX you should spend. This year I’m projecting to make $110k and with my current monthly salary it was enough to pay off the car in 6 months (I owed about $10k). Yeah sure I got savings, EF, I think I can afford the monthlies too which is around 30% of my gross monthly income and also planning to move out of my parent’s house which would cost me about 13~20% of my gross monthly income. But let’s leave it at 4K. Finally, be patient. The former is quite reasonable, the latter is absolutely absurd. Even if you got the car for free, you couldn't afford even just the insurance and fuel on this car. Response 1 of 27: You could use the "20/4/10 rule" as a gut check. I use the 10x rule, whatever car I’m buying, I have to make 10x that that year and The question of "Is a 50k car a good idea" is a whole different question from "Should I finance a 50k car?" I just finished yesterday talking myself out of a £750 pm payment that I could afford. 2. 6% interest for 60 I don't think you can afford a car with your salary—factor in maintenance, insurance, gas, and mortgage. My girlfriend is looking for a car and she's 20. Option B: modest new car ($20k) for 10 years, plus another $228,000 when you retire. Also, having a good amount to put down and/or a decent trade really helps. Also always buy second hand as the drop so much in value the minute they are off the forecourt. I give up other things to afford my passion. You need way more than that to afford it unless you’re older and you can put half down. Wondering if I’m insane for owning two 30 year old cars while making under 50k USD per year. Home: How Much Car Can I Afford on $50K Income? Auto Loan Amount: $15,178. Reply reply 30% of your monthly income isn't 30k / 30% haha an example would be if you earn 50k a month then 30% of 50k would be 15k Reply reply 'Never spend more than this much of your income on a car,' says millionaire finance expert - 10% of gross salary - Someone earning 500k a year can afford a 50k car. I would say, if your credit and income are truly there to qualify for and COMFORTABLY make a payment at the full $50k, then fine, put the money down and do your thing, but most applicants I see Buying a 5 year old luxury vehicle with 50k miles is a very bad money decision. Especially if single. Why can't you upgrade to a $50k car instead of a $100k car? What about your hobby means you have to spend an extra $50k? Better yet, if you bought a $37k car, you could save a boatload of cash for when the inevitable glut happens. You can afford a $50k car. Sure, a used car might be more expensive than what they were 2-3 years ago but it’s still miles cheaper than a car that’s 60% of your salary? It’s terrible right now to finance a car especially with the interest rates. They come through classic/high end specialist dealers, auctions, importers, enthusiast forums/groups, sold around 'communities' of wealthy car collectors e. You will likely have to put money down to get to that. One of my goals is to buy a nice car (~$50k-$60k) car before I’m 30. I am already seeing low interest rate offers on new vehicles from the dealers and car manufacturers. He values a car much differently than other people. 50 in monthly car payments. Sorry for the long A 50K car is a luxury. Dump all of that into a car payment and now you can Used cars with less than 50k miles are basically the same price as a new car. How much of a car can I afford if I pay entirely in cash? comments. Buying a $50k car causes you to miss out on substantial opportunity costs of investing $320k - $50k savings - $40k scholarships = $230k gap. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. It is not worth the money. I consider £40K the minimum to consider a car, £50K if living a city. Any car older than 100k miles can cost you a lot of money when they predictably fall apart. Genuinely curious to see how people can afford new cars. My rule of thumb is to spend on a car that is 1/10 of my equity. This was due to chip shortage and pent up demand. Then oopsit's 2600 for emissions and as soon as you pass the light comes on. Had it professionally detailed and polished etc and it looks and . Let’s unlock the mystery together! $50,000 a Year is How Much an Hour?? Obviously this is r/cars so they'll want to splurge more on cars and not r/personalfinance. Needs a car. that means I need save for 18 months to get a car that costs 45K (including taxes). If you buy a new car every 3 years because you're worth it, even though you're not actually worth it, you're doing it wrong. Models like the Honda Civic or Toyota Corolla Option A: nice new car ($50k) for 10 years and then nothing financial to show for it at the end. If I were you, I'd save up first and buy a second-hand car instead. 33. Prima facie depending on your age, yes, with a $200k / year income and no debt you can comfortably afford a $60k car. The cost to buy gas will be larger than any of those. Other Notes: I can afford monthly payments while I live at home, When it comes to cars, when taking on a loan, focus less on the monthly payment and more on the total cost of the car. Bought a $17k car back in April, could have paid cash but got a 1 year loan instead (only added an extra $600 or so to the purchase price of the car). If your scholarships dont cover all your tuition and you dont want to take out loans, youre kinda shit out of luck. A $30,000 Toyota Camry seems enough money already! I already need to deal with other expenses. Now, my car was nowhere near $50k, but my interest is 2. Go to collegescorecard. My financial situation: 1500 a month income about 30k cash credit score 780 no debt It's ideal na pagkakuha mo palang, you replace all the fluids, have it inspected and have stuff that needs replacing replaced. It also depends on other expenses you have like your rent, groceries, gas, insurance, etc. Is having a new car your highest priority? That is your decision. A nice raise to be sure but nothing earth shattering. I'm considering buying a car for around 50k next year (obviously not right now since the rates are high). Reply reply TGOTR • Nothing is more expensive than a used luxury car. limas In fairness cars do last much longer than they used to, so it’s not unreasonable to be willing to take longer to pay for them. The question you should ask yourself is how do people afford 50k cars without drowning in debt at a young age The truth at your age? You either get very lucky gambling with stuff like crypto, work really hard to learn a scalable and a in Managed to afford a nice car by not having kids. It is cheap to get a 50k car if you really want one. After I graduate, I won't have to worry about rent until the end of 2024. To wonder how people can afford a 50K car? 64 replies tryingtobemarrypoppins2 · 30/05/2010 20:49 Being stuck for 7 hours on the motorway I got rather bored and started playing the which car is the most expensive game (sad I know!). Then compare both of those figures to the 20/4/10 16% is ludicrous unless the buyer's credit is horrid. Public transportation sucks unless you’re in New York San Fran or seattle. Buy a car that you can afford the payments on, on a 4 year loan and get it paid off Hello, I am a 19 YO college student and I’m considering making a dumb car purchase. 50K is now like 35-40K. So I kept making "car payments" to myself and put it in a mutual fund. I’ve also heard it’s a “rule of thumb” to only put 15% a month of your net income for a car payment, and finance for no longer than 36-48 months. Lifestyle creep is something to be cognizant of, and deliberate about. Toggle navigation Auto Loan Calculator. Leaves you with 1900. You can afford this car (although I would challenge you to make sure you have as much leftover each month as you expect- clothes, haircuts, gifts, groceries etc are all budget line Exactly, a lot of people cannot afford cars is the bottomline. My question is, Am I shooting too high on a 50k vehicle that is more than my average annual 30k profit. Learn about budgeting, saving, getting out of I personally don’t see the value of spending $30k on cars per annum even if I was making $500k. but then you can't go all out and take a +1 dito OP. That doesn't mean people making 80k a year can do the same, there are far too many other factors at play. Bonus money / tax returns. Even if you're not financing, it's a decent way to get a So to purchase a $25k vehicle, at minimum you should be making $50k/yr. Just in case you don't follow that advice; Infiniti and Tesla are very poor choices here - massive depreciation if you plan to own for more than 2 years. TikTok video from Humphrey Yang (@humphreytalks): “How much should you be making in order to comfortably afford a $50k car?”. Let's say that all in, maintenance, insurance, gas, car payment, etc, you're at about $3,500 a month for a more entry level model. Rental and car insurance another 150. Banks do not look at a history of someone having 40k, 50k, 60k loans and go "Oh yeah, we Maintenance costs on used cars or older cars can be painful, as cars depreciate and become more affordable, but parts and labor do not. We can afford to put 17k down right now with plans to double pay our car loan every month and pay to off quickly. You can’t afford a new car let alone a performance model. I was into $40-$50k brand new cars and got out of them in 4-5 years. With a General Election round the corner, the cost of living is on everyone’s mind. How much income do you need to afford a 50k car? If you wanted to stick to this rule of thumb and buy a $50,000 car, you would need a monthly take-home income of at least $7,240 if you got a car loan at a below-average rate and stretched out your payoff time for a long time. Fuck used cars. For those with a salary near $30,000 your home, car, and debt combine should be no more than $1,250 per month. It can be necessary debt, having a car dramatically boosts my earning potential so for that reason having a car is better than not having debt but people will use "but it's good debt" to justify spending an extra $10-20k on a car when a $5,000 beater and no debt would have been the better choice. One visible way to see it is in certain neighbourhoods. ly/auto_loans_ls(I may be Exactly, a lot of people cannot afford cars is the bottomline. But due to the saving on the labour costs, I can afford to use a car. And in 18 months from new I walked into the bank and wrote a check for ~21K dollars paying off the car. These prices are insane, for even the lowest end models it comes to $33k after all the fees and taxes. The question is, do you want to afford one. I already have 50k in stocks, and as for student loans, they are interest-free; I owe approximately 20k on them. It is important to not misuse or overextend the credit you are given. Canyon runs, travel, track time, clubs, and wrenching are all extremely rewarding for me. This isn't a cash vs finance argument, its a "dont buy more car than you can afford" argument. Josephine Nesbit . Many rare and expensive cars will be sought through brokers, specialist, importers etc where the customer is paying for them to do all of the work in finding the car. r/personalfinance. g LA, Malibu etc. The following are some of the most frequently asked questions about affording a car. I think someone making 50k could make a better financial decision than a 23k car. Whether it’s mortgages, rent, fuel prices or the cost of food, the last few years have seen many You don’t need to afford the car, you just need to be able to afford the payment. Compound iinterest. Can I afford a 40k car? With no other bills , you can afford a $40k car with a yearly income of $12,000. you won't get rewarded for babying the car and driving it under 5000 miles a year. You finance the rest for no more than 4 years. I'm all for financing for First time buying a car brand new from the dealership. And car sales keep increasing per year, so it makes me wonder how people are able to keep up with these payments. Someone making $50k a year living rent Standard personal finance advice says to spend no more than 10% of your monthly income on a car payment and less than 20% on combined auto expenses, including gas, insurance and maintenance. Its important to note that a $3000 car is going to be significantly better than buying a $2000 car in the general sense as long as it's not a lemon. There’s a guy here who makes $600k a year and won’t buy a $65k Chevy. Now cars easily last 15 years, so a 7-8 year loan isn’t on its face unreasonable. That’s fine for him. That said, you can save half your current income, pay your bills, and still afford the car. Use this car affordability calculator to determine your budget. European car dealers suffer from import duties making new cars expensive so they make their money on repairs. I currently have a beater car that I bought for 2000 dollars but it is unreliable and want something fun and pretty relilable as a car enthusiast. I am open to understanding this, Isuppose it may be down to a few thing such as they may be sitting on some money (inheritance?), paying or living on credit, maybe it's their passion so they put money into it, they may be doing something shady or have some cash-in 1 - People who can actually afford the cars they buy and are super wealthy 2 - People who can actually afford the cars they buy and are normal middle to upper middle class 3 - People who cannot afford the cars they buy (1-3 payments or 1 emergency away from being upside down in their car) A - People who have a passion for cars and driving How Rate of Interest Can affect the Affordability of a Car Under 50K Salary? The rate of interest can greatly impact the affordability of a car for someone with a 50K salary or under 50k salary. 50k-100K DP then MA 9k then BPI Motor Insurance(12k) then 1k monthly allotment for PMS every 6 months. 5% less tax than New Jersey. A $50k car is expensive, but it sounds like you could afford it if you really want to. The car market has changed so much in the last 10 years. (as opposed to a home, or an actual investment, like a rental property) The girls I thought that car would impress all thought my car was my dad's, and I was just borrowing it. you believe luxury buyers can't afford their cars so you seek out info to confirm that) look at actual and That is because with conventional cars your highest cost associated with the vehicle won’t be the car itself, your insurance, or any loan fees. Some people buy cheap new cars. A few phone calls can really save some money. So if I didnt have a house payment, I still have to save over 1 year to get that car. With this calculation, and no trade, someone making $50k a year can safely afford a $24k vehicle if they have great credit. A car is not good debt. There is a big difference between being able to "afford" it and it being a smart financial decision. I mean a lot of people can easily trade in a current car worth say 20k like mine in, and afford 5-6 years of a 500 dollar I would say you can afford the car if you prioritize and continue to be responsible with your money, which seems to be the case. Edit: I explained my reasons why in another post, but it definitely relates here as well. ie: $20,000 today, and adding $200 a month Well, stop looking at cars that are 50k. I pretend I only receive my base. 5% rate increase to make sure your target home price is still accurate You can't afford a $50,000 car. derkmjbe kinpfzf rwjbvc tsw xomfnqb tzaxlf nxzt fwxoes nuslg exnxtnf