What Car Can I Afford?

Car Affordability by Net Worth

Browse our comprehensive guides to find out what car you can afford based on your net worth. Each page provides instant affordability calculations using conservative financial guidelines, showing you conservative (5%), safe (10%), and stretch (15%) budgets for your net worth level.

Select your net worth range below to see detailed affordability recommendations and budget breakdowns.

Jump to net worth:

Net worth from $50K - $500K
$50K$60K$70K$80K$90K$100K$110K$120K$130K$140K$150K$160K$170K$180K$190K$200K$210K$220K$230K$240K$250K$260K$270K$280K$290K$300K$310K$320K$330K$340K$350K$360K$370K$380K$390K$400K$410K$420K$430K$440K$450K$460K$470K$480K$490K$500K
Net worth from $500K - $2M
$525K$550K$575K$600K$625K$650K$675K$700K$725K$750K$775K$800K$825K$850K$875K$900K$925K$950K$975K$1M$1.025M$1.05M$1.075M$1.1M$1.125M$1.15M$1.175M$1.2M$1.225M$1.25M$1.275M$1.3M$1.325M$1.35M$1.375M$1.4M$1.425M$1.45M$1.475M$1.5M$1.525M$1.55M$1.575M$1.6M$1.625M$1.65M$1.675M$1.7M$1.725M$1.75M$1.775M$1.8M$1.825M$1.85M$1.875M$1.9M$1.925M$1.95M$1.975M$2M
Net worth from $2M - $5M
$2.05M$2.1M$2.15M$2.2M$2.25M$2.3M$2.35M$2.4M$2.45M$2.5M$2.55M$2.6M$2.65M$2.7M$2.75M$2.8M$2.85M$2.9M$2.95M$3M$3.05M$3.1M$3.15M$3.2M$3.25M$3.3M$3.35M$3.4M$3.45M$3.5M$3.55M$3.6M$3.65M$3.7M$3.75M$3.8M$3.85M$3.9M$3.95M$4M$4.05M$4.1M$4.15M$4.2M$4.25M$4.3M$4.35M$4.4M$4.45M$4.5M$4.55M$4.6M$4.65M$4.7M$4.75M$4.8M$4.85M$4.9M$4.95M$5M
Net worth from $5M - $10M
$5.1M$5.2M$5.3M$5.4M$5.5M$5.6M$5.7M$5.8M$5.9M$6M$6.1M$6.2M$6.3M$6.4M$6.5M$6.6M$6.7M$6.8M$6.9M$7M$7.1M$7.2M$7.3M$7.4M$7.5M$7.6M$7.7M$7.8M$7.9M$8M$8.1M$8.2M$8.3M$8.4M$8.5M$8.6M$8.7M$8.8M$8.9M$9M$9.1M$9.2M$9.3M$9.4M$9.5M$9.6M$9.7M$9.8M$9.9M$10M

How We Calculate Affordability

Our net worth-based affordability guides use conservative financial guidelines that help you make responsible car-buying decisions without tying up too much wealth in a depreciating asset:

  • Conservative (5% of net worth): Recommended for those prioritizing wealth building and financial security
  • Safe (10% of net worth): A balanced approach that allows for a nice car without excessive spending
  • Stretch (15% of net worth): The upper limit before car spending becomes financially questionable

These guidelines assume you're buying with cash. Cars are depreciating assets, so limiting your purchase to 5-15% of your net worth ensures you maintain financial flexibility and don't tie up too much capital in something that loses value over time.

Frequently Asked Questions

How much should I spend on a car based on my net worth?▼
Financial advisors recommend spending between 5% and 15% of your net worth on a car. A conservative approach is 5% (prioritizing wealth building), 10% is a balanced choice, and 15% is the upper limit before car spending becomes financially imprudent. For example, with a $500,000 net worth, a safe car budget would be $25,000–$50,000.
Why should I base my car budget on net worth instead of salary?▼
Net worth gives a more complete picture of your financial health than salary alone. Someone earning $100,000 with $500,000 in savings is in a very different position than someone earning the same with $50,000 in debt. Using net worth ensures your car purchase aligns with your overall wealth, not just your cash flow.
Should I buy a car with cash if I can afford it?▼
If you can pay cash for a car that fits within the 5–15% net worth guideline, it is generally a smart move. You avoid interest charges and keep your monthly expenses lower. However, if cash rates are high and loan rates are low, some buyers prefer financing and investing the difference. The key is to never stretch beyond 15% of your net worth regardless of payment method.
What car can I afford with a $1 million net worth?▼
With a $1 million net worth, a conservative budget (5%) is $50,000, a safe budget (10%) is $100,000, and a stretch budget (15%) is $150,000. Most financial planners recommend staying in the 5–10% range to keep your wealth growing rather than tied up in a depreciating asset.
How fast do cars depreciate compared to other assets?▼
New cars typically lose 20–30% of their value in the first two years and around 50–60% over five years. This is why financial experts recommend limiting car spending to a small percentage of net worth — putting too much wealth into a rapidly depreciating asset can significantly slow your financial progress.

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