How much should you pay for your first car?
For many people I think that will be between 10–15 percent of your income. So if you earn $25,000 a year, that's going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that's a used car for around $10,000 or $12,000. (Yes, this is the harsh reality of being good with money).
The frugal rule: 10% of income. For many people I think that will be between 10–15 percent of your income. So if you earn $25,000 a year, that's going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that's a used car for around $10,000 or $12,000.
- With a conventional loan for a house that's backed by Fannie Mae or Freddie Mac, for example, the minimum score required is set at 620. But the lowest credit score to buy a house with an FHA loan is 580.
- A buyer with a 680 credit score won't struggle to find a mortgage. According to LendingTree.com, people with a score over 660 are low-risk lenders, which means they tend not to default on their loans. However, that buyer will pay a slightly higher interest rate.
- A credit score of 641-680 is fair: You may qualify for that loan or credit card, but your rate will be relatively high. A credit score of 681-720 is good: You're in the pocket. A credit score of 720-850 is excellent: At this level you get the best rates on credit cards, car loans, and home mortgages.
According to the 36% rule, it isn't wise to spend more than 36% of your income on loan payments, including car payments. Another rule of thumb says that drivers should spend no more than 15% of their monthly take-home pay on car expenses.
- But for what it's worth, the average amount spent to insure a car in the U.S. was $815 a year in 2012, according to the National Association of Insurance Commissioners. However, as anyone who pays much less — or more — than $815 a year can tell you, there are a lot of variables that affect your car insurance rates.
- Interest.com Managing Editor Mike Sante says you shouldn't spend more than 10 percent of your pretax income on the combined cost of car payments and auto insurance, while The College Board recommends 15 percent of take-home pay should go toward all transportation expenses.
- How Much Does Buying a Cat Cost? Typical costs: Adopting a kitten or adult cat from a shelter usually costs between $50 and $100. Purchasing a pet quality purebred kitten from a breeder usually costs between $300 and $1,200 depending on the breed and color.
Before the Model T, cars were a luxury item: At the beginning of 1908, there were fewer than 200,000 on the road. Though the Model T was fairly expensive at first (the cheapest one initially cost $825, or about $18,000 in today's dollars), it was built for ordinary people to drive every day.
- In 1900 a car, then hand-made, cost over $1,000. Henry Ford's original Model-T, introduced in 1908, cost $850, but by 1924 only $265: he was using an assembly line, and, in virtuous circle, was also selling far more cars. Over the century, the real price of a car fell by 50%.
- On July 3, 1886, mechanical engineer Karl Benz drove the first automobile in Mannheim, Germany, reaching a top speed of 16 km/h (10 mph). The automobile was powered by a 0.75-hp one-cylinder four-stroke gasoline engine.
- On June 4, 1896 in a tiny workshop behind his home on 58 Bagley Avenue, Detroit, where the Michigan Building now stands, Ford put the finishing touches on his pure ethanol-powered motor. After more than two years of experimentation, Ford, at the age of 32, had completed his first experimental automobile.
Updated: 2nd October 2019