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There’s no one answer when it comes to the “right” amount of money to spend on a car. Learn about the cost of buying a new car.

Buying a car is a complex decision. You have to balance budget with desire and need, which can be really challenging.

Matthew Angel, advice director for USAA, remembers the day his friend’s 23-year-old son got his first job and bought a new car. “It was an expensive sports car – all the bells and whistles,” he says. “His parents thought he was totally crazy for spending all that money on a car.”

Angel saw their point – but he saw their son’s, too. “Sure, maybe it was a splurge, but he did his homework first,” he says. “Being young and single with not many expenses and a steady income, he had it in his budget to spend more on a car than most other people. Continue reading “How much car can I afford based on my salary?”