#CarAffordability #BudgetFriendlyCars #CarBuyingTips
Setting Your Budget
When determining what car you can afford comfortably, it’s important to take into consideration your monthly net income and expenses. In your case, with a monthly income of $4400 and housing costing $1600, leaving you with $2800 for other expenses and savings. This includes your groceries, retirement budget for your parents, and any additional spending.
Factors to Consider
– Look for a reliable car that fits within your budget range of $15k-$18k
– Consider the cost of insurance, maintenance, and gas
– Think about the length of your commute and the type of driving you do
Choosing the Right Car
When it comes to choosing a car that you can afford comfortably, look for options that are known for their reliability and affordability. Some budget-friendly cars to consider include:
– Honda Civic
– Toyota Corolla
– Hyundai Elantra
– Ford Fiesta
– Nissan Sentra
Final Thoughts
Considering your financial situation and budget, it’s important to choose a car that fits within your means and won’t put a strain on your finances. By sticking to your budget range and prioritizing reliability, you can find a car that meets your needs without breaking the bank. Remember to factor in all costs associated with owning a car, and make sure to leave room in your budget for unexpected expenses. Happy car shopping! 🚗
The only recommendation I have is to shop for auto insurance *while* you are shopping for your car. Texas is a crapshow when it comes to insurance, Houston doubly so; and the pricing will impact your vehicle affordability.
You’ll want to consider fuel, insurance, and maintenance costs as well.
18-19k will get you pretty decent vehicle that is modern and new enough to be pretty reliable.
You’re probably looking at like 500-700/month for the vehicle cost and the gas, insurance, etc.
I think you can pretty easily afford it, you might just need to pay closer attention to your finances to make sure you are meeting your goals.
Edit: I just saw you mention estimated insurance costs. Those are higher than I accounted for. I would suggest determining how much you can afford per month for car related expenses and then work backwards from there.
Conventional wisdom is to spend no more than 10% of your net income on your car payment, and no more than 15% on total car costs. By that reasoning and netting $4400/month means you should keep your costs below $660: $440 for the loan payment and $220 for everything else vehicle-related).
Bump up your retirement savings before you even think about a new car. Putting 7% away ain’t gonna cut it.
My wife and I picked up a 2019 insight touring for a little under 20k. 35k miles, leather, remote start, 45mpgs, honda reliability. I’d look for a 2019-2021 prius or insight.
I started this job 6 months ago and am planning to get to 15% by next year…. I get a 5% match… but I was waiting to get my needs secured first….. Before tying up my retirement… I save about $600 a month in a high yield savings(minimum) … So once I get the car I can start putting more of my $600/monthly savings in Roth 401K
What do others think about OP using his 13K to buy a car in cash? Why go into debt when he has cash to buy a car outright?
I see these posts and realise how much behind our salary’s are in the UK. You make around £3500 per month at 23. That’s what I make after 25 years experience. Very few 23yos make that. None of my friends or family, other than my brother make that. None of my wife’s family are even close to that. Hopefully we catch up.