Question

What car can I afford with a $5k monthly salary?

If your salary is $5k per month, then it is advisable that you opt for a car that costs below $35,000 or results in a monthly payment of $500 to $750 per month, which is around 10% to 15% of your monthly income.

It is possible to afford a car even if your monthly salary is $5k. The budget for the car or monthly loan payment will also depend on your credit score and other expenses. In addition, you should also make sure that the expenses of maintaining a car, which include fuel and maintenance, fall under 20% of your income.  

You can either prefer used sedans, mid-size, or SUVs, which will generally fall under $25,000 per month, which is a financially comfortable option. If you’d like to opt for a new car, then try small SUVs or compact sedans.