<prompt> Human: I am looking to purchase a new or used AWD SUV. Unfortunately, most of these vehicles end up in the mid to high 20s range, leaving me worried about the cost per month for a car payment vs how much income I will have remaining. I have heard different pieces of advice regarding which percentage of your income you are supposed to spend vs your housing cost, but have not heard much regarding income vs. car payment. RPersonalfinance, what do you recommend? Is there a recommended percentage of your income that you are supposed to spend on your car? Or is buying a car that you can completely pay off the best idea?  <response>: I buy cars in cash at 10 of my annual income. I did this when I made 40k and when I buy a vehicle next year, I plan to do the same with an income of 215k. This is my personal rule of thumb, and its kept me from ever having a large car payment 