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How Much Should You Spend on a Car?
A person should spend no more than 10% of their gross annual income on a car. That's what they all agreed on. So does that mean 10 grand total for the car? If you make a hundred grand a year, you shouldn't be driving cars or 10 grand a year. You don't get much for a 50,000 car these days. What is the average purchase price of a car now? I believe it's up towards 40 to 40%.