What percentage of annual household income to spend on car?

[tabbynat]

So I was thinking, what is a reasonable amount to spend on a car? Let's take as a percentage of household income to standardise.

 

If a household combined monthly income is $10,000, annual income $120,000, and they buy a Honda Jazz with annual depreciation $10,000 (http://www.sgcarmart.com/new_cars/newcars_overview.php?CarCode=11531), it means they are spending 10/120 = 8% of their income on the car, excluding petrol etc. Do you think this is reasonable?

 

How much would you spend on a car?

[Jman888]

please search before starting a new thread.

 

http://www.mycarforum.com/topic/2674971-car-price-is-what-of-your-annual-household-income/?hl=income

 

locked.