Question: How Much Should You Pay For A Good Used Car?

What percentage of your money should you spend on a car?

According to the 36% rule, it isn’t wise to spend more than 36% of your income on loan payments, including car payments.

Another rule of thumb says that drivers should spend no more than 15% of their monthly take-home pay on car expenses..

How much is too much for a car payment?

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.

How much does a cheap car cost per month?

The average monthly payment on a new car was $523 in the first quarter of 2018, according to credit reporting agency Experian. But that’s far from the true cost to own a car. For vehicles driven 15,000 miles a year, average car ownership costs were $8,469 a year, or about $706 a month, in 2017, according to AAA.

How much should a good used car cost?

Auto experts say the lowest price for a reliable used car is about $2,500. But they’re quick to note that every additional $1,000 in your budget will allow you to get a newer car that’s been driven fewer miles.

How do I know if Im getting a good deal on a car?

How to Tell if You’re Getting a Good Deal on a CarCompare the Purchase Price. … Never Negotiate Based on Monthly Payment. … Let Them Sell You. … Always Counter-Offer. … Incentives & Rebates. … Know What Fees You Should (or Should Not) Pay. … Don’t Forget the DMV. … Service Matters.

What are the worst cars to buy in 2020?

These Are The 15 Worst Cars, Trucks, And SUVs For The 2020 Model Year8 Kia Stinger.7 Cadillac ATS.6 Jeep Cherokee.5 Infiniti Q50.4 Volvo XC 90.3 Lincoln Nautilus.2 Chevrolet Colorado.1 Chevrolet Camaro.More items…•

What is the most unreliable car brand?

Number 1: Cadillac Falling into last place as the least reliable automaker of 2019 is Cadillac. With a score of 23, GM’s luxury brand is far and away the least reliable automaker in America, according to Consumer Reports.

What is a decent price for a car?

How to calculate car ownership costsAverage New Car CostSmall Sedan$593$20,000Small SUV$700$26,000Medium Sedan$720$25,000Medium SUV$855$33,0003 more rows•Mar 29, 2020

What car can you afford with 120k salary?

You can comfortably afford a car that is roughly half of your salary, maybe even a little more if you have little other debt. So at 120k you can afford a car up to 60–70k. Honestly depends on your other expenses. If you live way below your means on everything else, you may even be able to afford a 100k car.

How many miles is too much for a used car?

How many miles are too many? Really, it depends on a lot of factors but, if in doubt, shoot for the 12,000-mile/year average. Even so, don’t be afraid of cars that are outside of this range, provided the used car in question has been well maintained and there are records to show that.

What age is best to buy used car?

So for used car shoppers, purchasing a car that’s two to three years old and driving it for three years results in some of the lowest costs for recent model cars.

How much will a dealership come down on price on a used car?

According to iSeeCars.com, used car dealers cut the price on the average vehicle between one and six times over that 31.5 day listing period. The first price drop is significant — the firm says that the price drops, on average, by 5% the first time the dealer rips the old sticker off the car and pops a new on.

What used cars to avoid?

Avoided them at all costs.Chrysler Town & Country. Chrysler’s new minivan will hopefully rate better than Town & Country. … BMW X5. 2012 BMW X5 | BMW. … Ford Fiesta. Compact cars by Ford had a bad run between 2011 and 2014 | Ford. … Ram 1500. 2015 Ram 1500 | Ram. … Volkswagen Jetta. … Cadillac Escalade. … Audi Q7. … Fiat 500.More items…•

What is the best used car for the money?

Best Used Cars That Are Under $10,000Honda Accord. … Ford Focus. … Hyundai Elantra. … Mazda Mazda3. … Toyota Avalon. … Honda Fit. … Toyota Prius. … Subaru Outback. If you need the utility of a station wagon at an affordable price, keep your eye out for older models of the Subaru Outback.More items…•

What cars last the longest?

See the full list of the longest-lasting car brands below:Toyota. Toyota Land Cruiser. Hollis Johnson/Business Insider.Honda. Honda Accord. … GMC. GMC Sierra Denali. … Chevrolet. Chevy Silverado. … Ford. Ford Mustang. … Lincoln. Lincoln Navigator. … Subaru. Subaru Crosstrek Limited. … Jeep. Jeep Wrangler Unlimited. … More items…•

How much should I spend on a car if I make $30000?

Rule #5: Half your annual salary Half of that is $30,000. According to this rule, you can spend up to $30,000 on your upcoming car purchase. While this may be a good benchmark to start with, it does not take into account your current debt obligations, financing costs or what you have saved for a down payment.

What is the best way to negotiate a car price?

Let’s dive into some car negotiating tips that will help you drive home grinning from ear to ear.Do Your Research. … Find Several Options to Choose From. … Don’t Shop in a Hurry. … Use Your “Walk-Away Power” … Understand the Power of Cash. … Don’t Say Too Much. … Ask the Seller to Sweeten the Deal. … Don’t Forget Car Insurance Costs.

What the best cars to buy used?

Check out the full list of used-car picks below.2014 Lexus IS 350. Lexus. … 2016 Hyundai Genesis. Hyundai. … Sedan/Hatchback. Dodge Charger. … Honda Civic. Honda. … 2015 Honda Accord. Honda. … SUV. Jeep Grand Cherokee. … 2018 Toyota 4Runner. Toyota. … 2020 Dodge Durango SRT. Dodge. The 2011-2020 Dodge Durango snagged the third spot.More items…•