Question: What Is A Good Budget For A First Car?

What’s a good budget for your first car?

If you’re financing a car, make sure you can put down at least 20 percent of the car’s price, or you’ll probably end up owing more than it’s worth.

If you can’t afford to put down the 20 percent or pay off the car in 48 months, don’t buy the car..

What is the ideal first car?

The 10 best first cars on the UK market are reviewed below: Dacia Sandero. Volkswagen Polo. Hyundai i10. Toyota Aygo.

What is the safest first car for a teenager?

10 Safe New Cars and SUVs for Teens Under $25,000Chevrolet Equinox – $24,995.Kia Optima – $24,115.Subaru Crosstrek – $24,505.Honda Insight – $23,860.Mazda CX-3 – $21,435.Hyundai Kona – $21,195.Subaru Impreza – $20,895.Volkswagen Jetta – $20,890.More items…•

Is 400 a month too much for a car?

The result is that the car will be a lot more expensive in the end. In the example we’ve given, a car payment of $400 per month for 5 years (60 months) equates to $24,000. But the same $400 per month spread out over 6 years (72 months) is $28,800, while it’s $33,600 over 7 years (84 months).

Is 1000 down on a car enough?

If they’re dealing with less than perfect credit, this person can expect to need around $1,000 for a down payment. … When it comes to special financing, lenders typical require borrowers to make a down payment of $1,000 or 10 percent of the car’s selling price, whichever is less.

How much is too much for a car?

Another rule of thumb says that drivers should spend no more than 15% of their monthly take-home pay on car expenses. So under that guideline, if your net pay is $3,500 a month, it’s best to avoid spending more than $525 on car costs.

What’s a good budget for a car?

Whether you’re paying cash or financing, the purchase price of your car should be no more than 35% of your annual income. If you’re financing a car, the total monthly amount you spend on transportation—your car payment, gas, car insurance, and maintenance—should be no more than 10% of your gross monthly income.

What is a cheap car payment?

Our opinions are our own. Before you hit the dealership you should take a moment to decide what monthly car payment you can afford. To cut to the chase, it’s smart to spend less than 10% of your monthly take-home pay on your car payment, so you can keep your total car costs below 15% to 20% of your income.

What is the cheapest car for a 17 year old?

20 Cheapest Cars to Insure for 17 Year Olds Volkswagen Up. Hyundai i10 1.0 S. Vauxhall Adam. Mazda 2. Renault Twingo 1.0 Expression. Vauxhall Corsa Expression 1.0i 12v ecoFLEX. Skoda Fabia S 1.0. Fiat 500.More items…•

How much should I spend a month on a car?

Monthly payments should be less than 10-15% of your take-home pay (after taxes) … If you want the best car you can afford at that salary, you could buy a $30,000 car, put a $6000 down-payment, get a 5-year loan at 4% interest and end up at monthly payments for 5 years at $442.

What is the best first car for a teenage girl?

Best First Cars for TeensBEST OVERALL. Volkswagen Golf. See Photos. Starting Price: $21,805. … BEST MIDSIZE. Toyota Camry. See Photos. Starting Price: $24,565. … BEST SPORTS CAR. Mazda 3. See Photos. Starting Price: $18,990. … BEST ALL-WHEEL DRIVE. Subaru Impreza. See Photos. Starting Price: $19,355.

Can you buy a car at 17 years old?

A car dealer should not refuse to sell you a car just because you are under 18. This is called age discrimination and is against the law.

What’s the cheapest car to insure?

Scroll down to see ten of the cheapest cars to insure that you can buy in 2020, with models in the lowest car insurance groups.Volkswagen Polo. … Volkswagen Up. … Hyundai i10. … SEAT Ibiza. … Nissan Micra. … Ford Ka+ … Toyota Yaris. … Smart Forfour.More items…•

What is a good first car 2020?

Based on price, overall ranking, predicted reliability, the 2020 Ford Mustang makes an excellent choice as a first new car.

What car can I afford with a 50000 salary?

Dave Ramsey takes a balance sheet approach. Rather than looking at monthly transportation costs, Dave recommends buying cars that cost no more than 50% of your annual income. So if you make $50,000 a year, you should not spend more than $25,000 for a car(s).

What is a good first car for a girl?

10 Best Cars For Beginners and Young Drivers2018 Honda Civic. While the Civic is small, it still packs a pretty good punch especially if you are buying a first car. … 2019 Chevrolet Cruze Premier Sedan. … 2019 Subaru Impreza. … 2018 Mazda 6. … 2019 Toyota Corolla. … 2019 Ford Fiesta. … 2019 Hyundai Elantra. … 2019 Nissan Sentra SR Turbo.More items…•

What is the most I should spend on rent?

30%A generally accepted answer is you should spend no more than 30% of your monthly gross income on rent. From that, you could deduce 20% is a sweet spot, 25% is still okay, and 30% should be your upper limit.

What cars last the longest?

The longest-lasting cars and percentage of vehicles exceeding 200,000 miles are:Toyota Avalon, 2.5 percent.Honda Accord, 1.9 percent.Toyota Prius, 1.7 percent.Chevrolet Impala, 1.7 percent.Ford Taurus, 1.6 percent.Toyota Camry, 1.4 percent.Toyota Camry Hybrid, 1.2 percent.Honda Civic, 1.2 percent.

What is the cheapest car to insure for a teenager?

10 cheapest cars to insure for teen driversToyota Prius – $24,200. … Honda Accord (2-door and 4-door) -$21,955. … Mazda 6 – $21,190. … Ford Fusion – $20,795. … Mitsubishi Outlander – $22,995. … Nissan Rogue – $22,790. … Subaru Outback – $23,495. … Subaru Forester – $22,195.More items…

What is the best car for a 17 year old?

The 5 best cars for 17-year-oldsŠkoda Citigo. The Škoda Citigo is aimed at younger drivers. … SEAT Mii. This Spanish version of the virtually identical Škoda Citigo is zesty yet practical. … Citroën DS 3. It’s great to feel 17 years old again. … Suzuki Swift SZ4. The Swift is fun to drive and has nimble handling. … Kia Picanto.

What would be a good first car for a 17 year old?

The Volkswagen Polo is every new driver’s dream motor. This sporty supermini comes with lots of driver assistance features too, such as Front Assist and City Emergency Braking that help you to avoid hazards on the road – you can never be too careful.

How much is car insurance for a 17 year old monthly?

Car insurance for a 17-year-old costs an average of $265 to $987 per month. The cost largely depends on whether the teen is added to a parent’s policy or gets one of their own. Most 17-year-olds are covered by their parents’ policy because it’s much cheaper.

What is the best car for high school?

10 Best Cars for High School Students2018 Chevrolet Spark. When it comes to picking a car for a high school student, the 2018 Chevrolet Spark ticks all the boxes. … 2017 Honda Fit. … 2017 Hyundai Ioniq Hybrid. … 2017 Jeep Renegade. … 2017 Mazda Mazda3. … 2018 Nissan Frontier. … 2018 Nissan Versa. … 2017 Subaru Impreza.More items…