How do I budget for a used car?
Budgeting for a used car helps control monthly costs, with most experts recommending payments under 15% of gross income.
Quick Summary
Experts recommend keeping car payments under 15% of gross income.
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Answered by Sonny Baird
Last updated 1/16/2026, 3:03:01 PM
Do yourself a favor and make a budget for your first car purchase. Giving yourself some realistic guardrails will help make car ownership easier on your wallet! Most financial institutions recommend budgeting no more than 15 percent of your gross (before taxes are taken out) monthly income on a monthly car payment. Don’t forget about insurance. We’ve got you covered there too! When you visit the dealership, ask about our Vehicle Insurance Referral Program.
General Sales Manager, West Mitsubishi
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