According to the 36% rule, it isn’t wise to spend more than 36% of your income on loan payments, including car payments.
Another rule of thumb says that drivers should spend no more than 15% of their monthly take-home pay on car expenses.
What is a good price to pay for a used car?
Auto experts say the lowest price for a reliable used car is about $2,500. But they’re quick to note that every additional $1,000 in your budget will allow you to get a newer car that’s been driven fewer miles.
What is the best used car website?
Top 10 Used Car Websites
- Autotrader.com. Because AutoTrader has been around since before the internet, its longstanding reputation has built up decades of trust.
- Kbb.com (Kelley Blue Book site)
Will I get a better deal if I pay cash for a car?
Paying cash can get you discounts.
Cash gets you the discount price, which is the cost you pay for taking advantage of zero percent financing. And when you pay cash, you may even be able to negotiate a better price, particularly on a used car.
Can I afford a 30k car?
Most financial experts agree that your car expenses (monthly payment, insurance, fuel, taxes, routine maintenance and so forth) should be no more than 15 to 20% of your net income. In our $3,300 example that works out to a maximum of $500 to $660 per month.
How much can I afford to pay for a car?
Financial experts answer this question by using a simple rule of thumb: Car buyers should spend no more than 10% of their take-home pay on a car loan payment and no more than 20% for total car expenses, which also includes things like gas, insurance, repairs and maintenance.
What’s the best month to buy a used car?
What’s the best time of year to buy a used car? Typically, more used cars are sold in the spring and the summer, which means that sellers are more eager to make a sale during the cold weather months.
How much should I spend on a car if I make 70000?
Rules of Thumb. 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.
What is the most reliable cheap used car?
Based on the research and recommendations of our Kelley Blue Book editors, here are the 10 Best Used Cars under $8,000.
- 2008 Subaru Impreza.
- 2008 Nissan Maxima.
- 2007 Subaru Outback.
- 2010 Ford Crown Victoria.
- 2009 Toyota Corolla.
- 2009 Honda Civic.
- 2007 Honda Accord. View full gallery.
- 2007 Toyota Avalon. View full gallery.
What used cars NOT to buy?
30 Used Cars Consumer Reports Gave the ‘Never Buy’ Label
- Chrysler Town & Country. Chrysler’s new minivan will hopefully rate better than Town & Country.
- BMW X5. 2012 BMW X5 | BMW.
- Ford Fiesta. Compact cars by Ford had a bad run between 20 | Ford.
- Ram 1500. 2015 Ram 1500 | Ram.
- Volkswagen Jetta. VW Jetta | Volkswagen.
- Cadillac Escalade.
- Audi Q7.
- Fiat 500.
How many miles should you buy a used car?
You should consider the current mileage when purchasing a used car. Of course, the fewer miles it has been driven, the better. An average of 12,000 miles per year is considered the norm. Of course, some cars are driven less than that, but many are driven much more due to long commuting distance.
What is the best car to buy used?
Check out the best used cars on this list, based on CarMax sales from November 2017.
- 2014 Nissan Altima.
- 2014 Toyota Camry.
- 2015 Nissan Altima.
- 2014 Ford Fusion.
- 2014 Honda Accord.
Do Dealers prefer cash or financing?
Dealers prefer buyers who finance because they can make a profit on the loan – therefore, you should never tell them you’re paying cash. You should aim to get pricing from at least 10 dealerships. Since each dealer is selling a commodity, you want to get them in a bidding war.
What is the cheapest way to buy a car?
The cheapest ways to buy a new car
- Borrowing from friends and family. If you have someone that can lend you the money, then this will be the cheapest option.
- Using your savings.
- Put it on a credit card.
- Taking out a personal loan.
- Personal contract purchases.
Why you should never pay cash for a car?
That is because credit card debt is unsecured, and a car loan is secured with the product that you drive off the lot. A person who bought cash for their car, may be using their MasterCard for grocery shopping and bleeding money in interest rates each month, even if it’s paid on time.