How Much Should I Buy A Car For May 2026

: Aim to keep your monthly car payment at or below 15% of your take-home pay .

For a more conservative approach or if you are buying used, try to stay at .

: A stricter variation requiring a 20% down payment, a 3-year loan term, and limiting payments to 8% of your gross income. Total Cost of Ownership (TCO)

Financial experts recommend several "rules of thumb" to keep your car affordable: