Can we afford this car?

There's no single rule. The most useful approach is to look at the impact on your savings: how much you'd have left each month after the payment and running costs, and whether you'd still keep a buffer. Some guidelines suggest keeping the total cost of a car under a modest share of your income, but it depends on your situation.

Paying cash means no interest, but it depletes your savings in one shot (less of a buffer). Financing preserves your savings but comes with interest and a monthly payment. The calculator shows you both effects so you can compare.

Insurance, fuel or charging, maintenance and repairs, inspections, and registration taxes. These running costs often add up to as much as the purchase itself over the years.