# How much car will I get approved for?

Follow the 35% rule. Whether you're paying cash, leasing, or financing a car,**your upper spending limit really shouldn't be a penny more than 35% of your gross annual income**. That means if you make $36,000 a year, the car price shouldn't exceed $12,600. Make $60,000, and the car price should fall below $21,000.

## What determines how much you get approved for a car loan?

Lenders will look at your debt-to-income ratio, or DTI. This measure compares your monthly bills to your gross monthly income. Most car dealers like to see a DTI no higher than 45 or 50 percent before approving a loan, according to The Car Connection.## How much car can I afford based on my income?

Financial experts recommend that your monthly payment should be around 10% to 15% of your monthly take-home pay. Additionally, your total monthly car expenses should be no more than 20% of your monthly income, and this includes your car payment, insurance, maintenance and gas.## How much should I spend on a car if I make $100000?

Many lenders approve car loans (and refinance loans) with a DTI around 50%. To find out how much car you can afford with this 36% rule, simply multiply your family's income by 0.36. So if you earn $100,000, for example, you could afford to take out a car loan of up to $36,000 — assuming you don't have any other debt.## What credit score do you need to buy a 50K car?

What Is the Minimum Score Needed to Buy a Car? In general, lenders look for borrowers in the prime range or better, so you will need a score of 661 or higher to qualify for most conventional car loans.## How Do You Get Approved For Your First Car Loan???

## What is the monthly payment on a $40,000 car loan?

For $40,000 loans, monthly payments averagely range between $900 and $1,000, depending on the interest rate and loan term.## Can I get a 40k car loan with a 600 credit score?

Unless you have the cash, that means you need an auto loan. It's essential to be knowledgeable about how your auto loan process will be different than someone with a higher score. You might not have the same options, but you can still get an auto loan with a 600 credit score.## How much should my car cost if I make 70k a year?

Follow the 35% ruleWhether you're paying cash, leasing, or financing a car, your upper spending limit really shouldn't be a penny more than 35% of your gross annual income. That means if you make $36,000 a year, the car price shouldn't exceed $12,600. Make $60,000, and the car price should fall below $21,000.

## How much should you spend on a car with a 70k salary?

If you earn an annual income of $55,000, for example, that means your budget for a car should be $5,500-$11,000. If you make $70,000, your budget would be $7,000-$14,000.## How much can I spend on a car if I make 80000 a year?

The Frugal Rule: 10% of Your IncomeIf you earn $80,000, that's a used car for around $10,000 or $12,000.