Services
Insurance
Loans
Repairs
Advice
About

How much can I afford for a new car if I make $50,000 a year?

"What is a good car loan on my salary? I currently make $50,000 a year and I want to finance a car."

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“As a general rule, you don’t want to spend more than 10% of your pay on a vehicle if you can avoid it. However, how many cars you can afford is also up to your budget and personal choices.
If you adhere to the 10% rule, that means that you should only spend $416.67 on a car loan payment each month. Determining this amount is highly variable.
There might be more affordable routes.
You can purchase a more expensive car and lengthen the
term of the loan
to lower your monthly payment.
You can also buy a less expensive car or a
used car
to get to this dollar amount.
What you decide is entirely up to you, but try to spend no more than that 10%.”
View full answer 
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings