In general, you should strive to pay somewhere between 10% and 35% of your income on a car. This means that, depending on your income, you may not be able to afford a top of the line new car. However, it’s much better to purchase a cheaper new or used car than to buy a car that you struggle to make the monthly payments for.
If you’re a serious car fanatic and have plenty of wiggle room in your budget, you might consider spending up to 50% of your income, but we don’t recommend doing so unless you’re certain you can afford it.