Figuring 38k a year, comes out to about 3100 a month, minus the high end estimate on your living expenses you are looking at $1600. I dunno if the 38k you said was before or after taxes, but I'm just gonna assume after for this purpose. Look at your habits and how much you spend a month on other activities. I recently did this and started realizing where my money was going, because I certainly had almost nothing to show for it. I make about $1200 a month after taxes and I pay about $300 in car payments/othe payments. I'd say thats my limit to how much I can pay a month and not be strapped for cash. I put away a little money each month that goes towards stuff for my car. The rest gets spent. Now I don't pay rent or anything like that because I still live at home, so that's my money going towards car payments and "living" money like going out with friends and other activities. I could probably swing a $400 a month car payment, but I'd rather not give up other things for it. You really have to look at your own spending habits and see what fits into your budget. Not everyone is the same and one person affording it isn't gonna be the same as you. Before you buy a car, I'd go a few months after you start your new job(I'm assuming you are starting a new job soon). Try not to spend more than you do now and look at what you are saving a month. Use that as a guide to how much you can spend a month on a car. When I first started working I was spending money like crazy because I had no bills. Once I got a car payment I've run into money problems because things changed drastically. Be smart and don't get into anything until you KNOW for sure that YOU can afford it, not because someone else said you should be able to.