For your first car, you can spend an average of $5000 to $10000. Most first-time car buyers can’t afford a car worth more than $10000, and it’s risky to purchase a vehicle costing less than $5000 as it cannot be relied upon. Auto loan payments will not be unmanageable for you anymore.
A dependable first car can cost between $5,000 and $10,000. That doesn’t include other costs such as car insurance, oil changes, and other types of maintenance and repairs. If it fits your budget, a new car or used car with monthly payments you can afford on a car loan will likely get you in a better car.
How much should I spend on my first car?
So, if you make about $30,000 per year, you wouldn’t want to spend more than about $6,000 for your first car. This would buy a decent used car. Or, you could put a couple of thousand down and then make monthly payments. If you really want to splurge, you could spend about 35% of your annual income on a car.
What is a car cost calculator?
Thankfully, this car cost calculator makes it easy to figure the true cost of car ownership and even compare costs between different vehicles by applying all relevant factors including tax, license, warranty, depreciation, finance, insurance, fuel, maintenance, and repair costs.
Can you afford to buy your first car?
If you are a bit more comfortable with your money, you can probably afford to spend about 20% of your annual income on your first car. If this is the first time you’re buying a car, you are probably young. That means your income may not be as high as other people shopping for cars. And, there’s nothing wrong with that.
What is the largest cost of a car?
The depreciation expense can be the largest cost of your car. Depreciation is simply the wear-and-tear cost which reduces the value of your car after a few years. The depreciation rate for each car varies. An average car depreciates about 65 percent at the end of five years.
Which car is best as first car?
List of the best cars for first-time buyers
- Renault Kwid. The Renault Kwid is a hatchback that has the appearance of a Sports Utility Vehicle (SUV). …
- Maruti S-Presso. The Maruti Suzuki S-Presso is a compact car with an SUV-like design. …
- Maruti Wagon R. …
- Maruti Ignis. …
- Tata Punch. …
- Tata Tiago. …
- Hyundai Grand i10 Nios. …
- Honda Amaze.
What is the best first car?
Small hatchbacks make the best first cars; they don’t need a big engine, so are generally much cheaper to buy, run and insure than larger models, such as SUVs. In addition, younger drivers looking to buy their first car typically do not need the space of a large family hatchback, so smaller cars make more sense.
Are BMWs good first cars?
BMWs are not good first cars as they are expensive to run, have more power than most new drivers can safely handle, and are costly to insure. However, if the new driver has a larger budget then there are some merits to buying a BMW as a first car.
Is the Volkswagen up a good first car?
The Volkswagen up! has been among our best first car champions for a long while. As a complete package for new drivers, it’s near unbeatable and scores highly for the first-time buyer. Not only is it economical but some models also fall into insurance group two, meaning it’s one of the cheapest cars on the market to insure.
Is buying your first car a good idea?
Buying your first car is an exciting experience, and the good news is that there are some excellent new cars on sale today that fit the bill for new and young drivers. Finding the right first car is still a challenge, though.
What price is a good first car?
$5000 to $10000
For your first car, you can spend an average of $5000 to $10000. Most first-time car buyers can’t afford a car worth more than $10000, and it’s risky to purchase a vehicle costing less than $5000 as it cannot be relied upon. Auto loan payments will not be unmanageable for you anymore.
What is a good first car?
The 107 would be a great first car for anyone, it is easy to drive and can fit where other cars couldn’t with its tiny stature. Another city car, Vauxhall’s turn this time with the Adam. Even smaller than the Corsa, the Adam has a funky design with a contrasting black roof.
Are small cars a good choice for first-time buyers?
Fortunately there are myriad choices among small cars and SUVs on the market that can be especially appealing to first-time buyers. We combed through U.S. News’ new-vehicle data to winnow the selections down to a dozen new subcompact and compact cars and SUVs that are the safest and sanest choices for young drivers.
What is the cheapest car to buy?
Opt for economy cars. Economy cars are typically the cheapest, and therefore the most likely to be booked. You can use this to your advantage, says Brett Graff, a family finance expert and author of a syndicated column called The Home Economist.
