Car Affordability
Compare new vs used cars against your salary. Includes payment, tax, insurance, fuel, and maintenance - the true monthly cost of ownership.
You
Vehicle prices (before tax)
Financing
Monthly operating costs
The most car you can afford
On $75,000 in ON, holding all-in costs to the 15% comfort line:
Comfortable max · new (15%)
$17,640
stretch to $28,853 at the 20% ceiling
Comfortable max · used (15%)
$15,434
used cars carry higher upkeep, so the cap sits a little lower
Your selected $38,000 new car is $20,360 over the comfortable max.
New car
$1,194/mo all-in
24.1% of take-home
Used car
$896/mo all-in
18.1% of take-home
Our take
On a $75,000 income, the 15% rule says your all-in vehicle costs shouldn't exceed about $744/month.
PFC consensus
A car is a depreciating asset. Buy a reliable used car (3-5 years old), aim for total monthly cost (payment + insurance + fuel + maintenance) under 15% of take-home, and don't finance longer than 60 months. New cars lose 20% of value in year 1 and 50% in 5 years.
Lease vs buy (8-year view)
Perpetual leasing vs financing the new car once and keeping it. Rough model: leases renew back-to-back, the owned car is credited ~30% of MSRP at year 8, and the leased car pays half the maintenance (always under warranty).
Buy + keep 8 yrs
$79,786
net of the $11,400 the car is still worth
Lease back-to-back
$92,216
own nothing at the end
Buying comes out $12,430 ahead over 8 years - the usual result when you keep a car well past the loan.