What’s a good budget to set for a first car? Thinking about getting a 30k car on a 100k salary pre tax and don’t have any other debt. All the affordability calculators I’ve seen online calculate based on monthly payments but I’m wondering if there is a % of income based view. Seems doable but I’m not sure if it’s a good financial decision considering the costs of having a car other than the monthly payment!

like
Posting as :
works at
You are currently posting as works at

1. Never buy a car which costs more than your annual salary.
2. Usually get a used car as your first car - helps build driving history and keeps insurance premium low - also helps to understand the cost of maintenance as well as how depreciation works.( I'm not saying a 2010 car, even 2017 cars should be cheap today and last for a while)
3. In terms of direct amount, the right amount is what you are comfortable paying in full today ( if 30k to pay at once feels too much for a car, don't loan it either)

likehelpful

The finance gurus would tell you to buy a car you can pay cash for as you don’t want to get a loan on a depreciating asset. How much do you have saved?

like

Put as little down as possible! Put the rest in the market. You can easily beat 3% over 4-5 years.

I’d you really are set on buying new, your guidelines for the maximum range should be 48 month financing with 20%, and your resulting payments should be less than 10% of your monthly income.

E.g financing a 25k car, 20% down = 5k cash down payment, then the 20k loan for 48 months depending on interest leaves you a ~400-500/month payment. Add monthly insurance then compare that to your monthly income and keep it under 10%

helpful

Agreed. If you plan to keep your car beyond the loan (which if you’re buying the car vs leasing, I presume you plan to keep), it also doesn’t matter. Ironically, my car has actually increased in value by $4k since purchasing last year (and 5k additional miles)—wouldn’t anticipate this happening on all purchases, but point being, 20% down should not be a black line.

like

Depends how much you value a car. You set the price you’re willing to pay

Related Posts

Makkale, pls advice. YOE: 5.10, CCTC: 9.5, Deloitte India offered: 19.5 lpa (17 fixed), role: Senior consultant, skills: Business Analyst, SQL, Tableau ..

correct ahna salary range dan potrukaangala ?

Need your valuable comments.

Is this a good time to move from pre-tax 401K to Roth IRA? We have been one income family last 4 months but I still expect year income to be in $250K-$270K range. Considering conversion for $40K amount.

like

What do you see as most attractive exit ops in Europe? In the US, everything is about Tech/FAANG, but it seems way less attractive in Europe (less strategic roles, comp. seems much lower than in the US, very centralized around London/Dublin).

like

How are the areas around white rock lake to buy an investment property? Any suggestions appreciated!

like

Anyone build a house in NVA? We're planning to move to a bigger house in a couple of years and building is an option if it's not too expensive. Anyone got any builders or $/sq ft info? Thanks!

like

In a perfect world how much would you want to make a year to both pay off your loans and live a good life? I think I'd need to make upwards of $200k to pay off my loans, take care of my family and live a fulfilling life.

like

My spouse got an opportunity for a consultant position in UK . Can someone advise on the average salary for a consultant there ? He has an experience of 12 years.

like

So I accepted an offer back in mid March but I didn’t negotiate it up and now I’m regretting it, because apparently you’re supposed to. I got a much higher salary than expected and a sign on bonus, and it’s been a while since I accepted the offer, and the start date is later this year…. Is it too late to ask for a bit more though? If not, how do I go about it?

like

Considering Leaving JP Morgan to join US bank is that a sounds move ? 9 years of software engineer experience - currently paid $135K plus bonus as Associate software engineer at JPMC- but I want a fully remote position that’s why considering making the move to US bank. Is it worth the move if they offer me the same salary? Or should I ask for more ?

like

Hi Fishes,

My wife is getting transferred to California from India and she is offered 143k.

How much she can get after tax deduction and all? How much she can save after all the expenses?

She is insisting that I travel with her and get the job in the US. I'm a software developer having 4.1 YOE. How much can I get in the US? Is it worth traveling with her?

Any information would be helpful, Thanks in advance...

like

Product Manager offer is 120k salary, sign on bonus of 15k. 4 YOE total. Undergrad degree in computer science. Am I underpaid? This is a legit question lol. I’ve only done federal contracting/consulting work.

like

Hi, I have 6.5 YOE in .net Full stack development
Having two offers Siemens 17 LPA fixed + 1.5 L joining bonus and simply healthcare 18 LPA fixed
Which one is better?

like

approaching salary inequality? Agency has strict position salary caps. But hired employee at 15% higher, without good reason. Best way to approach this, knowing you’ve outperformed them consistently?

likesmart

Any know salary ranges for VP/ED roles in industry (e.g. JPM, Citi)?

What should be the salary slab for 9.5 years experience working as a Test lead and having good knowledge in automation testing and E2E testing?

I overpaid social security deductions last year due to job switch and two employers. Will that be applied against the tax I owe and will my employer also be refunded for their contribution?

like

To all the people buying house at 300-400k mark. How did u do it and what do you make?

like

I handleda very difficult and convoluted succession for a black family. My client was astute and intelligent. We got along great. His family was difficult. Willfully ignorant.

Part of the succession dealt with clawing back $450,000 in insurance proceeds that a niece fraudulent received from the decedent by making herself the beneficiary on policies. A separate attorney was hired to handle that part before I was hired to handle all other matters, including settling a $500,000 debt with the...

like

I filed my tax with TurboTax. It said my estimated refund is $700. I got a letter from IRS saying I actually owe $400. When I looked into it I realized they didn’t account for my 2021 quarterly estimates that I paid with my ex-wife last year. In our divorce decree we agreed to claim half of the credits each. But I guess for their record it’s all under her name. It’s impossible to reach IRS and also I really want to avoid contacting my ex. What would be the best approach for this?

like

More Posts

like

Who is your favorite director you have ever worked with and why?

like

Does your company pay for parking (if they don’t have a designated lot)? If no, do you believe they should they pay for it? Thoughts on this?

💆Teacher Self-Care!

What are ways you create balance between work and life and help yourself destress?

Drop your insights below and help another user!

like

Hello Fishes,

What will be my monthly in-hand salary ?

Post Photo

The adventures of RECTANGLE MAN

Post Photo
likefunny

How do you select your hourly rate? Here is my challenge: I can choose a rate that competes with similar rates in my country, however it feels like they are significantly above average in an international pool like as on upwork and similar platforms.

Just found out that Toyota will only be paying full-time production and skilled workers for four days each week. Fifth day pay will have to come out of our paid time off.

like
like

How are 1st year litigation associates dealing with WFH? I’ve been having terrible anxiety/panic attacks, and pretty sure my billables wont exceed 110 for April. I’ve been super stressed about it and don’t know how to move on to May with the proper mindset to make up for as much time missed as possible. CA courts are still closed, and I’m worried I won’t be able to exceed (or even meet) my May goal after April.

like

Proposal for pitching this....legal, time saving, energy goldmine....total consulting (life / work) must have!

Post Photo
likeuplifting

What should you do if they don’t put your name on the credits of work that is yours? Anybody’s had this experience?

like

What is the approval cycle for EY LLP?
When do we get the revised compensation letter, when is bonus credited and from which month is revised compensation applicable?

like

I hope everyone's day was full of food and loved ones...thankful for this bowl and the great city of Pittsburgh...cheers!

like

Best technology to use that LPL has?

like

How much Tax Analyst earn in EY?

like
like

Hi everyone,

Need a referral for a job profile at EY Ireland. Please let me know if anyone can help.

Thanks for your time and consideration.

like

Barber recs in Manhattan that can do a nice fade and scissor cut?

like

My senior associate takes 1 week to get back to me with comments and then tells me that I need to turn the document asap. This has happened several times already and I’ve had to pull all nighters to meet these insane deadlines when it’s clear that they just waited until the very last minute to get back to me… any advice? Feel like I’m burning out

likesmart

Additional Posts in Personal Investment Chatter

I’m 26 and have ~40k sitting in my savings account. Annual income 140k. Maxing out 401k. No debt. Planning to invest 25k but don’t know where to start. Should I get a wealth manager? What is the best way to approach this?

like

I am looking to buy my first rental property in a couple of months. What questions should I ask the realtors during the vetting process.

Not looking for a home for myself neccesarily . I am treating it as an investment.

like

Advise for TFSA investment in Toronto?

like

Our household income is 400k. Are we eligible to contribute to a traditional IRA? I’m pretty sure we can’t but wanted to confirm. Currently contributing to 401k and doing a mega backdoor Roth IRA.

likehelpful

If I make $120k base and have 50k for down payment, what should the house price be?

likehelpful

Went to a club yesterday and we paid $20 pp for cover just to find out that it was empty and there wasn't really a clubbing vibe. Bought a round of beers and we were so bored that we decided to leave in a few minutes... I feel robbed but at the same time I guess there's not much I can do, or is it? Im not sure if a CC charge back even applies in this case. Anyone had the same experience?

funny

I have 200k in HYS. Currently have 1k in BTC. Id like to start DCA to diversify my investments. How do you recommend this? Should I buy a bunch outright and then start investing 5-10% of each paycheck?

like

Are Vanguard target funds good options to invest my 401k money in?

like

What is a good alternative to a HYS and/or a CD for short term 6-12 month horizon? Low risk similar to HYS/CD, atleast from a principal conservation view.

like

Following up on “how you pay for engagement rings question”, where did you buy the engagement ring? Blue Nile? Private jeweler?

like

Considering adding a REIT index to my lazy portfolio allocation for my 401K and Roth Accounts. Thoughts?

like

Best robo advisors and why?

Park for a week at Seattle airport. Cost?
Where is the spot?

like

What's the average cost you've spent on a vacation between the travel and stay over the past few years (cost per person)

International or domestic?

like

What's your target retirement savings? Target age? Combined or single?

like

Creating a 529 for myself before having kids…Should I setup a 529 for myself?

I don’t currently have kids but probably will in the future (31M, single now). Alternatively, I may go back to school at some point, or I’d be happy to disperse/gift the $$ to my nieces and nephews too… what’s my upside/downside?

like

Tendies? 😊 🤚💎🤚

like

Looking to put $5K in the market. Which ones would you buy? Lululemon, delta airlines, Peleton, docusign, Zoom, etsy. Any that I’ve missed and should consider? Already have MSFT, BRKB, NVDA, BABA and multiple broad ETFs

like

Parents- do you have UTMA/UGMA accounts for your children? Pros/cons over 529?

like

TD Ameritrade vs Etrade vs Fidelity.... any big differences or are they all more or less the same user interface? Mostly for trading stocks options and ETF.

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal