How much you should spend on a car if you make $70,000 per year depends on financial rules including 20/4/10 rule and debt to income, but generally around $14,000 to $21,000 for used or $21,000 to $35,000 for new with careful budgeting. If you make $70,000 per year gross income, which is around $5,833 per month gross and around $4,500 to $5,000 net per month after taxes depending on state, financial advisors recommend spending no more than 15 to 20 percent of gross annual income on car purchase price for used car, or following 20/4/10 rule where you put 20 percent down, finance for no more than 4 years, and total car expenses including payment, insurance, and fuel less than 10 percent of gross monthly income, which for $70,000 is around $583 per month total car expenses, with car payment ideally under $400 per month. So car price around $21,000 to $35,000 for new car with 20 percent down and 4 year loan at 6 percent interest yields payment around $350 to $580 per month, with $35,000 at upper limit, and for used car around $14,000 to $21,000 recommended for better financial health, with total car expenses including insurance $150 and fuel $150 keeping under 10 percent rule. So if you make $70,000, spend around $21,000 to $35,000 for car with 20 percent down and 4 year term keeping payment under $400, with $21,000 being conservative and $35,000 upper limit if low debt.
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