A general rule of thumb is no more than 20% of your take home pay. However, everyone has a different budget, lifestyle, and needs. We recommend our Edmunds' Auto Affordability Calculator to help you determine your budget.
Articles in this section
- Can I get a better deal paying cash for a car?
- Should I buy an extended warranty for my car?
- How much can I afford for a lease?
- My lease is up. Should I buy the car or turn it in? (video)
- Are rebates and incentives subject to tax?
- When negotiating a purchase, how low of a price should I start out with? (video)