$31,800 Car Loan

Can I afford a $31,800 car?

Is your salary enough to buy a $31,800 vehicle? A general rule of thumb for buying a car or truck is the 20 / 4 / 10 rule.

• Make a down payment of at least 20% cash. For a $31,800 vehicle, this would mean saving up $6,360.
• Pay back the loan in 4 years or less.
• Don't spend more than 10% of your income on payments and insurance. Rough estimate: your annual income should be at least 2.5 times the purchase price. So to afford a car that costs $31,800, you would need to make at least $79,500 per year.