How Much Should You Earn Before Buying a Car? Expert Advice

Anh Tuan, the owner of a grocery store on Nguyen Trai Street, Ha Dong, has long dreamed of owning a car. Each time he sees cars whizzing by, he wistfully thinks of his old truck, a loyal companion for almost a decade. He wonders, if only his income were higher, wouldn’t he have brought home his “second wife” long ago?

Anh Tuan’s story resonates with many, especially given the relatively high car prices in Vietnam compared to the average income. So, how much should you earn before buying a car? Is there a universal formula for this complex question?

Analyzing the “Income – Car Purchase” Equation

Before seeking an answer to “how much to earn before buying a car,” we need to thoroughly analyze this expenditure.

1. Buying a car is more than just purchasing a “moving piece of metal”: Many people focus solely on the car’s price, forgetting the monthly “car maintenance” costs such as fuel, maintenance, repairs, tolls, and parking. Expert Nguyen Van An, in his book “A Guide to Effective Car Use,” points out that monthly car maintenance costs can range from 5-10% of the car’s value, depending on usage frequency and car model.

2. Buying a car is a significant financial decision that requires careful consideration: Don’t let buying a car become a financial burden for yourself and your family. Clearly define your usage needs, financial capabilities, and develop a reasonable spending plan.

3. There’s no universal formula for every situation: The appropriate income level for buying a car depends on several factors:

• Usage needs: Is the car for personal, family, or business use?
• Car type: Class A, B, C, or luxury car? New or used?
• Financial capability: Income, savings, loan repayment ability…
• Living conditions: Is your residence conveniently located for public transportation?

So, How Much Should You Earn Before Buying a Car?

While there’s no universal formula, based on expert experience and practical surveys, here are some suggestions:

1. Income from 20 million VND/month: You can consider buying a Class A car, a small city car for basic transportation needs within the city, such as a Hyundai Grand i10 or Kia Morning.

2. Income from 30 million VND/month: Choosing a Class B car, a sedan or small SUV, would be more suitable, providing comfort and convenience for the family, such as a Toyota Vios, Hyundai Accent, or Honda City.

3. Income from 50 million VND/month: You can certainly consider Class C cars, spacious 7-seater SUVs that meet the travel needs of the entire family, such as a Mazda 3, Kia Cerato, or Hyundai Tucson.

4. Income over 100 million VND/month: Luxurious and prestigious cars like Mercedes-Benz, BMW, and Audi would be fitting choices.

However, these are just suggestions for reference. The most important thing is to assess your financial capabilities and make an appropriate decision.

Considerations When Buying a Car

• Choose a reputable dealer: Visit reputable truck dealers like Xe Tai Ha Noi on Nguyen Van Linh Street, Long Bien, for the best advice and support.
• Thoroughly research the car: Consult experienced individuals, carefully read technical specifications, and compare prices.
• Test drive the car: Take the time for a test drive to experience and evaluate the car before making a purchase.
• Purchase procedures: Learn about car loan procedures, insurance, and vehicle registration.

Xe Tai Ha Noi Truck