Rule of thumb for buying a car based off your salary?

[WombRaider]

As in the price of the car should be X% no more than your salary.

 

[Aharami]

<30%

 

[Skunkwourk]

I go with the value of your car at the time of purchase should be no more than half your salary. 80k salary = no more than a 40k car , 40k salary = no more than a 20k car

EDIT: Sorry, should have emphasized "no more", yes it depends on where you live a well, but I was touching more on the fact that I know people who make 50K with 40K cars.

 

[Insomniator]

Depends where/how you live. A 40k lexus is not ok if you are making 80k in a place that is expensive to live (jersey shore for me). My dad makes 80k and 350-400 a month for a 40k car would be killer. If you live in the middle of no where then go for it.

 

[Dr. Detroit]

Definitely more dependant on your areas cost of living.

No general rule applies to cars IMO.

 

[Dr. Detroit]

Originally posted by: Insomniator
Depends where/how you live. A 40k lexus is not ok if you are making 80k in a place that is expensive to live (jersey shore for me). My dad makes 80k and 350-400 a month for a 40k car would be killer. If you live in the middle of no where then go for it.

$40K over 5yrs with 6% interest is gonna be close to $750/month............

 

[SSSnail]

Originally posted by: Fmr12B

Originally posted by: Insomniator
Depends where/how you live. A 40k lexus is not ok if you are making 80k in a place that is expensive to live (jersey shore for me). My dad makes 80k and 350-400 a month for a 40k car would be killer. If you live in the middle of no where then go for it.

$40K over 5yrs with 6% interest is gonna be close to $750/month............

Good thing I scroll down this far before I replied to his post regarding payments and such.

 

[her209]

I know people who are close to 100%. Of course, they live at home and are paying over a 60 month period.