A general guideline is that your monthly car payment should not be more than 20 percent of your take-home pay. However, people shop for cars with their hearts as well as their heads, and that can be a little dangerous.
It can prevent you from getting in over your head when you buy a car. The calculator helps you find an estimated price range in which to shop and will even suggest some cars that would fit your budget.
To save money, consider buying a second-tier car, from the less popular but still reliable manufacturers. Well-known vehicles like the Honda Accord and Toyota Camry can cost thousands more than a comparable Chevrolet Malibu or Nissan Altima, even though these are good cars. With this in mind, build a target list of three different cars that meet your needs and fall in your budget.