#CarBuyingTips #BudgetingForACar #HowMuchCarToBuy
Hey there! 🚗💸 Let’s dive into the exciting world of car buying and figure out just how much car you should buy based on your budget and needs. Keep reading for some helpful tips and advice to guide you through this important decision.
Assess Your Financial Situation
First things first, take a look at your finances and determine how much you can comfortably afford to spend on a car. Consider factors like your income, expenses, and any existing debts. It’s crucial to set a realistic budget to avoid financial strain later on.
Determine Your Needs
Think about your lifestyle and transportation needs when deciding on the size and type of car to buy. Do you need a compact car for city driving, or a spacious SUV for a growing family? Consider factors like fuel efficiency, maintenance costs, and insurance premiums when choosing the right car for you.
Consider Total Cost of Ownership
When budgeting for a car, don’t just focus on the sticker price. Factor in additional costs like insurance, maintenance, fuel, and registration fees. It’s important to have a clear understanding of the total cost of ownership to make an informed decision.
Research Different Models and Brands
Do your homework and research different car models and brands to find one that meets your needs and fits your budget. Compare prices, features, and reviews to narrow down your options. Look for reliable vehicles with good resale value to get the most value for your money.
Test Drive and Negotiate
Once you’ve identified a few potential cars, schedule test drives to experience them firsthand. Pay attention to comfort, handling, and performance to ensure you’re making the right choice. Don’t hesitate to negotiate the price with the seller to get the best deal possible.
In conclusion, the amount of car you should buy ultimately depends on your budget, lifestyle, and needs. By assessing your finances, determining your needs, considering total cost of ownership, researching different models, and test driving before making a purchase, you’ll be well-equipped to make a wise decision. Happy car shopping! 🚗💰 #HappyCarBuying #DriveSafely
Can’t go wrong with a Toyota – granted you should still get it inspected before buying. My advice would be to buy a vehicle with cash or as close to it as you can. Toyota vehicles can easily run over 200k miles so there’s no pressure to find a low mileage (<100k) vehicle.
Toyota’s are known for bulletproof reliability. That being said, the used one’s are too expensive. I’d look at something that’s reliable but cheaper. Possibly a mazda 3. Id pay cash for a 2018+. Try to spend as little as possible.
If you’re gonna buy a used car, get one from 2018-2020. The massive depreciation was paid by someone else and they have most of the nice bells and whistles we all want. I bought a 2018 Subaru in 2020 and it’s been great
Seems reasonable. It will of course sugnificantly delay any home purchase but I assume you know that.
Honda / Toyota for their Maintance. You could go as far back to 2012 and find some decent ones. Just be mindful of the big Maintance’s that do have to happen every 65k-100k miles.
You could go to a dealership and not be 100% ripped off or find a local mechanic. Parts are much easier to come by.
Try to find out what your insurance might be BEFORE you buy a car. These days, there are certainly some surprises out there
Before you buy a used Toyota that’s 3-4 years old like many recommend here, please check the price of an equivalent new model (or slightly lower trim model). Covid has done a number on used car prices, it’s not always rational (i.e. prices can be very similar, within a few thousand).
If you can purchase a new model without markup for a little more than used model, IMO it’s 100% worth it. In my region, the gap between used and new Toyota is irrationally small.
All of this assumes that you drive the car into the ground, etc.
If you buy honda or Toyota use timing belt replacement as a bargaining chip.
Get a used car but only max 4 years old. This helps with depreciation but also gives you a newer reliable car.
As little as possible. Cars depreciate at 10% (plus any loan interest)+ per year and investments grow at~8% per year. There’s about a 20% difference (plus any loan interest) in the rate at which your money will grow over your lifetime for every dollar you sink into car expenses.
One thing you should be wary of is how much insurance is going to cost you, if you haven’t been continuously insured all this time. Means you have what’s called a “lapse”, a large one at that if it’s been years. You may pay $25k upfront for a car but your insurance payment, assuming you get “full” coverage which you’ll likely want to for a purchase this large, could be astronomical.
Go and get quotes NOW using a VIN of a prospective vehicle you’d be interested in, like a RAV4 at that price point. Your best bet might actually be to get a hooptie car, like cheap as possible, and get only liability insurance coverage. After about maybe a year or so, look into upgrading to this $25k vehicle and getting insurance quotes beforehand.
I’m telling you, people fail to consider this part of buying a car. This is coming from someone who knows it best, and has been through the worst when it comes to this part of owning a car.
Edit: Just for clarification you might already be insured, like an added driver to an existing policy, but you’ll still 100% want to shop for insurance prior to considering a car purchase like this. Don’t get me wrong, $25k is very reasonable and a RAV4 is a fantastic choice, but not for someone lacking insurance history.
A used Mazda cx7/cx9 goes for around $15k with 60k miles. Sedans cost even less.
You can buy the Toyota if you want, but you definitely are paying a premium. Mazda’s are also Japanese with great reliability. Toyota even owns a stake in Mazda.
I’m in a similar spot to you, same age, roughly the but a little less in savings and in salary.
I feel like spending 40% of all your savings on a car is not that great. That is personally why I’ve been holding off buying a car since a lot of used cars are expensive and there are not a lot of good financing deals due to high interest rates. But if you’re planning to keep it for 10 or 15 years it’s probably not a bad idea. I have seen some 0% APR deals such as the Mazda cx-30, maybe worth looking into to.
I would hold of owning a car unless you absolutely need one. and if you do buy one try to find a good used deal and pay with cash, or find a good a decent Finance deal. Toyota Honda Subaru and Mazda are decent brands
Find the cheapest car you can that’s reliable.
You don’t seem to make enough to justify spending half your savings or nearly half your yearly- especially if you want to try and buy a home in the near future.
Just finance it and put a few thousand down
Honda or Toyota. Naturally aspirated only. No turbo
Probably the whole thing if you can afford it. I feel like trying to buy just the front wheels now and the rest of it later never actually works
don’t drop more than a third of your yearly dough on anything with wheels.
A general rule of thumb I use in my financial coaching practice is 25% or less of your annual income. So something below 15k.
An e-bike would save you money and make your bike commute easier.
Since your timeline seems flexible for buying a house, I would look at what car purchase will yield the lowest total cost of ownership (per mile).
I have a lot of friends buying new, nicer cars than they need on credit and then complaining about how they can’t afford a house. Gotta understand the tradeoffs and figure out your priorities! We lived like paupers for a long time so we could afford a house in a HCOL area.
How much car can you buy? Probably k a 15-20k car. You should save and or invest the rest. $60k income isn’t something for you to dump your money in a car.
Get a Honda civic or Toyota Corolla, plus check your insurance. It might surprise you how much you’ll pay for the insurance, especially if this is your 1st time and no driving history.
Go to your local credit union or bank and find out what car loans you qualify for. Do not use dealership lending unless the deal is very low APR.
For the car you want, figure out how much of a down payment you have to put down to a) not owe more on the car than what it’s worth and b) have the loan payments at a monthly rate you can afford comfortably.
None of the above matters if you are paying cash outright.
Electric bike man even if you go all out spend 5k no insurance, payments, surprise repairs cause you’re still buying used
I have had my honda 12 years, starter and alternator had to be replaced still runs like a champ, got it certified pre owned 32k miles, go with something reliable that won’t break the bank when it needs maintenance.
I have always heard the rule of thumb as take you annual income and divide it in half. That’s how much car you can afford. So in OP’s situation earning $60k annually he can pull a $30k car.
If you can get the lowest tier Toyota Prius I would totally recommend it. At 27k, 2 years of maintenance and ~56mpg it’s a no brainer. You get an extremely reliable car, great mpg, and support. And because it’s a sedan that’s under 30k, the insurance will definitely be towards the lower end.
Yes. Invest better. Save your money with used cars
you need to think about it carefully and if you don’t mind, the second-hand car is also a nice choice because it can help you save a lot of money.
Buy from a rental company, it’s more affordable. You’ll purchase a newer car with low miles and half the price. Best decision I made in 2020 and paid the car off in two years.
I searched and searched some more in a couple months found a nice car next state over for 10 thousand and my old car. Im glad my very high mileage rusted noisy junker made it that far I got there looked the car over and it looked new with only 9 thousand miles. Drove home smiling and had it over a year so far and like it
Spending half of your annual income on a depreciating asset is unadvisable. That same 25k could go so much further in an investment.
The better question is how little car you should buy.
Even if you COULD afford a 100K vehicle, that doesn’t mean you should buy a 100K vehicle.
Do you NEED a big truck or SUV? If not buy something smaller and far less expensive.
Do you NEED a car with a heads up display? Probably not and the replacement cost of a windshield will be over $1000
Bought a used 2016 tundra crewmax with 58k miles in 2021 for $35k. It has been a dream and aside from oil changes and getting a new set of tires this year I haven’t had to worry about it one day. It’s worth the money, even if she is a little gas hog lol
I’m working on buying my first house right now and you need quite a bit of money up front. I’d save at least $25k of that money to get started on a house. Down payment, closing costs, some needed repairs, furniture, etc.
My insurance is like $2000 a year right now, clean record 17 years experience, I’ve been quoted as high as $3500 under the same pretenses. Insurance is BS right now.
Whatever you buy used have a proper mechanic check out out. Pay him for it.
If you’re biking to work you don’t need a new car… Just buy used, spend a few thousand. Even the annoyance of random repairs will be worth it when you pre approved for 50k more on a mortgage.
A </=$5k prius with 200k miles and call it a day. Then proceed to build wealth.