The 15% rule: car costs ≤ 15% of take-home pay.
On $50K: $15K–$20K car
- Take-home: ~$3,200/month
- Max car budget: $480/month (all-in)
- Car payment alone: ~$350/month max
- At 7% for 60 months: ~$18,000 car
All-in means all-in
$480 covers: payment + insurance + gas + maintenance. A $350 payment + $150 insurance = $500. Already over!