Quick Answer: How Do People Afford 100k Cars?

How much should you make to buy a 100k car?

Assuming loan payments account for 60% of a car’s monthly expenses, in order to afford a $100K car, one will need to gross $29,707.33/month ($1,782.44 / 10% / 60%) or $356,488/year.

How do people afford expensive cars?

According to this rule, when buying a car, you should put down at least 20 percent, you should finance the car for no more than 4 years, and you should keep your monthly car payment (including your principal, interest, insurance, and other expenses) at or below 10 percent of your gross (i.e. pre-tax) monthly income.

What car would you buy for 100k?

2016 Mercedes-AMG C63 S – $73,250

The budget of $100,000 allows you to purchase this best of the best C-Class, while leaving you some money for fuel too. The C63 AMG is a serious sports sedan and one of the best new cars under 100k.

How much do I need to make to afford a 200k car?

A person making 100k a year is making more than 8k per month. With the average length of car loans being around 6.5 years now that means that for around $2500 a month you can get a 200k car, which is about 1/4 of the person’s 100k yearly income.

How much do you need to make to afford a 100000 car?

Assuming loan payments account for 60% of a car’s monthly expenses, in order to afford a $100K car, one will need to gross $29,707.33/month ($1,782.44 / 10% / 60%) or $356,488/year.

How much car can I afford making 60k a year?

Multiply this by 5 and you need to make at least $6000 a month, after taxes. This next part is incredibly simplified, and may not apply to your situation directly. That leaves $72,268.75 per year, divided by 12 is about $6022 per month. So, to afford a $60,000 new car, you need to make around $90,750 a year.