How much should a college graduate spend on a car?

So, spend 25% of the total cost of your 4 years of college, minus 50% of your student loan debt. Therefore, today, an average year at MIT is $65,000 and the average MIT student graduates with $30,000 in debt. Therefore, she/he could spend $50,000 on a brand new car…………

How much should I spend on a car after college?

In general, experts recommend spending 10%–15% of your income on transportation, including car payment, insurance, and fuel.

How much money should a student spend on a car?

All told, expert sources such as Consumer Reports and Quicken indicate that total transportation costs—monthly payments, insurance, gas, parking—should be no more than 8%–10% of your budget. That may be well worth it to you if you need your vehicle to work, class, and back home again.

How much do college students spend on car?

It has been estimated that on average a college student will spend between $1,050 and $1,800 on transportation costs. Additionally, it has been recommended that college students plan to spend at least $1,000 per year on travel and transportation.

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Is it smart to buy a car after college?

The best bet for young buyers, Mr. Bartlett advises — whether a new college grad or a high school grad — is a used vehicle between one and six years old. That way, it’s new enough to be reliable, so you won’t spend all of your paycheck on repairs, but not so old that it lacks updated safety features.

How much should I spend on a car if I make $100000?

So, theoretically, if your salary is $50,000 you could afford a car payment of $430 or less. With a $100,000 salary, you could afford a mortgage payment of no more than $2,500. For those with a salary near $30,000 your home, car, and debt combine should be no more than $1,250 per month.

How much is too much for a car?

When it’s time to buy a car, you’ll probably want to know: “How much car can I afford?” Financial experts answer this question by using a simple rule of thumb: Car buyers should spend no more than 10% of their take-home pay on a car loan payment and no more than 20% for total car expenses, which also includes things …

How much do millionaires spend on cars?

Most of the millionaires surveyed said they never spent more than $65,000 on an automobile. Over 50 percent of these cars are American made with 3 in 10 millionaires driving a Ford F-150 pickup. Millionaires earn, save, and invest early in life.

How much should I spend on a car if I make 80000?

The frugal rule: 10% of income

For many people, I think that will be between 10–15% of your income. So if you earn $25,000 a year, that’s going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that’s a used car for around $10,000 or $12,000.

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How expensive of a car can I afford based on salary?

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.

Can a college student afford a car?

Get a Cosigner

Having a cosigner can also help you afford a car in college. If you have bad credit or no credit, a cosigner with better credit can give you the boost you need to get approved for a loan. Plus, they can even help get you affordable terms for lower monthly payments.

Is it worth it to have a car in college?

Owning a car in college can help you make and save money, too. Since you can commute a little further, you’ll be able to consider a wider selection of off-campus jobs. And with all that carrying capacity, you can tackle a week’s worth of grocery shopping in a single day.

Should a student own a car?

Many students don’t need a car at college, especially if they don’t have a reason to leave campus or if home is too far away to drive to over breaks. … You’ll want to consider whether home is within a reasonable driving distance, or if your student needs to travel off-campus often for work.

What should I buy out of college?

If you’re a new college graduate, you should invest in these 18 things.

  • A nonstick frying pan. …
  • Three other essential pans. …
  • A set of fundamental cooking tools, including a knife and spatula. …
  • A custom-fitted suit (for men) …
  • An excellent-fitting blazer (for women) …
  • Comfortable yet flattering work pants (for women)
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