When picking out your next car, it can be difficult to figure out the best price point for your needs. BeFrugal’s handy calculator helps you find the sweet spot in your budget.
Photo by Wolfgang T. Shafer
The calculator works by factoring in how much you value and are willing to spend on your home. The idea is to establish parity between what you’re willing to spend on your home and car based on how much time you spend in each. In their words: “[T] he annual cost of your car versus the annual cost of your house should be proportionate to the amount of time you spend in each.”
When I gave it a try, the calculator’s suggested amount was almost exactly the cost of my car, off only by a few hundred dollars, so I must be doing something right. It may not be the ultimate measure of what you’re actually willing to spend, but if you’re looking at getting a new car soon, it’s worth a consultation.