How Much Do You Need To Make To Finance A Car?

How Much Do You Need To Make To Finance A Car?

According to this rule, when buying a car, you should put down at least 20 percent, you should finance the car for no more than 4 years, and you should keep your monthly car payment (including your principal, interest, insurance, and other expenses) at or below 10 percent of your gross (i.e.

pre-tax) monthly income.

How much car can I afford with my salary?

The general rule of thumb is that you should not spend more than 20% of your monthly take-home pay on cars, according to Edmunds.com (via Bankrate). So if your after-tax monthly income is $4,000, your total cost of car ownership for ALL of the cars you own should not exceed $800 under this rule.

Photo in the article by “President of Russia” http://en.kremlin.ru/events/president/news/60836