first time car purchase questions

ok... but does 1/6 of monthly pay sound about right or is that too much?

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... but does 1/6 of monthly pay sound about right or is that too much?

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There really isn't a formula for this kind of stuff.
Think about how much money you have saved for emergencies, retirement, other goals. Think about your financial life objectives, etc.

Then decide how much you think you should pay for another car. Forget monthly notes and how much it is as a percentage of your salary.

Also, this came from Will Cover: Very good advice in here.

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1. Arm yourself with information. LINK / , LINK / , LINK and LINK are excellent sites to research the vehicle of your choice (Invoice vs. MSRP, manufacturer rebates, dealer holdback, etc.)
2. Never show emotion even when going for a test drive (do NOT provide dealer with your driver’s license). Instead, prior to your arrival at the dealership, make a copy of your driver’s license and furnish the dealer with the copy of your driver’s license.
3. Never show emotion when negotiating.
4. Never offer or accept the first price.
5. Start off negotiations by saying “that’s not good enough.”
6. Never offer a counter price.
7. Silence is golden. When in doubt, shut up and you will pay less.
8. Know what power you possess by being able to “walk away.”
9. Never negotiate off “MSRP.” The negotiation process should start from the DEALER COST (which is less than INVOICE) price or the WHOLESALE price if purchasing a USED vehicle.
10. Rebates can be deducted from INVOICE price and not MSRP as the dealership will lead you to believe.
11. Know the dealer’s “hold-back” price and what type of incentives that may be offered from the manufacturer or dealership.
12. Don’t discuss a trade-in until you’ve settled on a price for the car you’re buying – each transaction should be separate and not dependent upon one another.
13. Settle on the price of the vehicle you’re interested in before you bring up financing — don’t let the rate of a loan influence the price of the car.
14. Have your financing pre-approved before you walk into a dealership.
15. Extended warranties never make financial sense.
16. Be aware of “extra” charges such as administrative fees, handling charges, advertising fees, paint protection, VIN etching – simply do not pay these as these are deal breakers. And believe it or not, even “delivery” charges are negotiable.
17. Get the deal in writing. Full disclosure, in writing, of all fees pertaining to your vehicle purchase, such as destination, title, documentation, licensing and registration. If the dealer will not put it in writing, “walk away.”
18. The “If I” sales tactic. This is the last step in the sales negotiation process. Ex. If I decide to purchase the vehicle today, you have to include free window tinting. If I decide to take the red vehicle instead of the white vehicle, you have to include 5 free oil and tire rotation services. If I decide to purchase the vehicle today, you have to include floor mats at no additional cost. If done correctly, this will allow you to get another “service and/or product” that you normally would not have received and by this time, there is no way will the dealership allow you to “walk” because there is too much time invested between both parties. The dealership knows you are in a buying mode and doesn’t want to run the risk of you becoming a “be back” customer for another dealership since most people buy within 48 hours of stepping onto a dealership’s lot.
19. Put deposits on a “credit card” only. Do NOT pay with a check.
20. If you got a great deal, show your appreciation. Thank the dealer and be sure to send your friends to them when they go car shopping.

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well im 24, just started my career. my job will require me to drive often, and i get a $600 a month allowance for my car ontop of my salary. right now we live in a small apartment but we like it, and rent is dirt cheap. I have good credit, but want to use this to build better credit.

we plan on buying a home in about 2 years, so we will be saving constantly for that.

but the car i currently have is not an option as it gets 14 MPG on the highway

also, i 99.9% sure i will be buying certified pre-owned, something just off lease, i dont want to pay depreciation.

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Congrats on the new job, man! It doesn't seem like too long ago you were poor!

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ha thanks, yea, it was weird, grew up silver spoon, upper class, then after school ended and my weekly allowance was gone i was one broke arse mofo... made me appreciate how hard my dad worked and how hard im going to have to work if i want to make even a quarter of what he makes

Where is the $10K coming from?

BTW, it's nice to see someone who appreciates what their parents did for them.

Savings. I have had it all along... just didn't want to use it for anything.

One thing my dad taught me. just because you have it doesn't mean that you have to use it. That's why when I overdraft I try to see if it can be waived.

Yea. He is normally the one I trust. I just wanted to hear some other opinions

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I'm looking at used

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That's good. I will stand by my answer of, put as little money down up front as you have to. Use the $600/month to make the payment. Use the rest to invest, save for a house, vacation, etc. Use your Savings as your emergency fund until you have 3-6 months expenses built up.