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  • How much should used cars cost
  • What should i pay for a used car at a dealership.

    Cars are expensive, no doubt. But unless someone cracks the code to teleportation soon, we all have to pay for this necessary evil to help us get from point A to B in life.

    It’s common knowledge that buying a secondhand, reliable vehicle is the smartest financial move.

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  • But given the wide price range and endless vehicle choices these days, how much should you actually spend on a used car?

    The short answer is: As little as possible! (This is a money site, after all. And we want you to keep as many of those hard-earned dollars in your pocket as you can!)

    Jokes aside, figuring out your exact car budget can be tough.

    Because if you go too cheap, you could be stuck with a clunker that breaks down every second week.

    And if you overspend on a whip that’s above your means, you might be sacrificing other important financial goals in exchange for that sweet ride.

    So where is the sweet spot middle-ground?

    The 10% rule:

    We’re fans of the 10% rule of thumb for car expenses. It basically states that your entire budget for automotive costs shouldn’t exceed 10% of your income each year.

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