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How much can I afford for a new car if I make $50,000 a year?
"What is a good car loan on my salary? I currently make $50,000 a year and I want to finance a car."
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“As a general rule, you don’t want to spend more than 10% of your pay on a vehicle if you can avoid it. However, how many cars you can afford is also up to your budget and personal choices.
If you adhere to the 10% rule, that means that you should only spend $416.67 on a car loan payment each month. Determining this amount is highly variable.
There might be more affordable routes.
You can purchase a more expensive car and lengthen the
term of the loan
to lower your monthly payment. What you decide is entirely up to you, but try to spend no more than that 10%.”
View full answer
- Gregory R.
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