Question: With what salary can I comfortably afford a $60,000 car?
Okay, so given the limited information we have, I’ll have to make some assumptions here to help whether or not you can comfortably afford a $60,000 car. Here we go.
First, let’s make some assumptions for the car in terms of what you will pay for monthly payments:
Okay great! Now that we have that cleared away, let’s now assume a frugal budget given each credit scenario as well as salary potential. Moreover, let’s assume your single, living alone with no tenants and have no student debt. I removed 401k/IRA contributions from this analysis for simplicity sake (would add another potential 10–15% from net savings).
Great/Best Scenario
Okay Scenario
Bad Scenario
So as you can, can it be affordable? Sure, depending on what level you are at in your career and what your salary is. However, this is all heavily dependent on whether you stick to your budget and are able to live within your means. Otherwise, you’ll quickly be living paycheck to paycheck, which you’ll want to avoid at all costs.
Hope this provides some visual context to your question. Enjoy!
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