Let’s say I’ve been able to save $30K and now it’s time to get a car. How much of that “saved” money should/can be used for a car? ”
Well, this depends on may things,but a key couple questions might help you decide this answer. First ,whats your number and when do you wish to achieve it? Second, is it necessary to have a brand new car, or could you do with a used car for a few years?
If you can do with a good used car, I think that can be achieved with $ 5,000 or less,then use the rest to help you grow your nest egg further. Some sort of investment, say stocks, or real estate.

But certainly, I wouldn’t use more than 5 or 6 grand for a car. Just my Own Opinion.

Alternatively, buy a house with a mortgage so you don’t have the cash flow to spend on car payments. At least the principal will represent a form of forced savings.

Great advice, to boot!

How much money should someone spend on a car given their savings?

Let’s say I’ve been able to save $30K and now it’s time to get a car. How much of that “saved” money should/can be used for a car?

JD

Take a camera on the test-drive and get the salesman to photograph you in the driver’s seat.

Go to a toy shop and order a model car of the same type.

After the drive, get the salesman to detail the repayment schedule given your down-payment. When you have the figures, breezily stand up and say: “I’ll get back to you”.

At home, display the model car and the photo from the test-drive.

Setup a savings account, pay the down payment in, and setup regular payments into it for the same value as you would give to the car dealership.

Get books, and start to fill a scrapbook with the things you want to do when you achieve your Number – re-inforce why you are denying yourself the car.

Put a quarterly reminder on your online calendar to send you an e-mail to remind you how much richer you are because you haven’t bought the car, and also to remind you to check the current secondhand price of that model. Buy it when its under $500.

KC