The right budget covers the total cost of owning a car, not only the loan payment. Here is a simple way to figure it out.
Start with your take-home pay
A common rule of thumb is to keep your total car costs — payment, insurance, fuel and maintenance — to about 15 to 20% of your monthly take-home pay. Many people aim for a payment of around 10% or less.
Add up the other costs
- Insurance: get a quote for the specific model before you buy
- Fuel: estimate your weekly miles and the car’s MPG
- Maintenance: oil changes, tires and brakes add up, especially on older cars
- Taxes and fees: in North Carolina, plan for the 3% Highway Use Tax plus title and registration
Example
With $3,000 a month in take-home pay, 15% is $450 for all car costs. If insurance and gas are about $200, a payment around $250 keeps you comfortable.
Shop by payment
Our inventory shows an estimated payment for every car, and you can filter by monthly payment. Try the “What can you pay a month?” slider on our homepage, or use the payment calculator.
When you are ready, get pre-approved so you shop with a real number.
