It's human nature to want more than we need or can afford, but long-term satisfaction is far more likely with a car or truck that does not end up being a constant strain on your budget. Remember, there is a wide selection of new cars and trucks today in all price ranges. All offer aerodynamic styling, high technology systems and better performance, handling and longevity. So be realistic and honest with yourself. There is no magic formula to determine how much of your income should be allotted to pay for your new car.
Some people are willing to spend more than others on their cars.
But a car should fit comfortably within your budget without crowding regular fixed expenses or crimping your lifestyle. How much you spend on a new car depends on your overall financial situation - income versus debt. If you need to finance a vehicle, it also depends on how much down payment you have and how much you can comfortably allot to monthly car payments. You should determine how much you can afford to spend on a new vehicle. Buy or Lease Increasing numbers of people are leasing vehicles as an alternative to buying them.