When you’re in the market for a new car, one of the most important things to consider is how much you can afford to pay each month. A car payment that is too high can cause financial strain and can be difficult to keep up with. According to experts, a car payment is too high if it is more than 30% of your total income. It is important to remember that the car payment isn’t your only car expense. You should also consider fuel and maintenance expenses when determining how much you can afford to pay each month.
How Much Is Too High?
When it comes to determining how much is too high of a car payment, experts suggest that you should not exceed 15%-20% of your total income. This means that if your total income is $4,000 per month, your car payment should not exceed $600-$800 per month. If you are considering a car payment that is higher than this, you should carefully consider your other expenses and determine if you can afford to make the payment.
Other Expenses
It is important to remember that the car payment isn’t your only car expense. You should also consider fuel and maintenance expenses when determining how much you can afford to pay each month. Fuel expenses can vary greatly depending on the type of car you have and how much you drive. Maintenance expenses can also vary depending on the type of car you have and how often you take it in for service.
When it comes to determining how much is too high of a car payment, it is important to consider your total income and other expenses. Experts suggest that you should not exceed 15%-20% of your total income when it comes to car payments. It is also important to consider fuel and maintenance expenses when determining how much you can afford to pay each month.
Questions & Answers
Q: How much should my car payment be?
A: Experts suggest that you should not exceed 15%-20% of your total income when it comes to car payments.
Q: Should I consider other expenses when determining how much I can afford to pay each month?
A: Yes, you should also consider fuel and maintenance expenses when determining how much you can afford to pay each month.
