how much should i spend on a car based on salary australia

Short version: keep total car costs to ≤10–15% of your take‑home pay, and limit the purchase price to about 20–30% of your gross annual salary.

If financing, aim for the 20/4/10 rule: 20% deposit, 4‑year max term, and all car expenses under 10% of take‑home.

In Australia, a new small car typically runs about AUD $25k–$35k, while a sensible used runabout can be found around $8k–$15k; late‑model used hatches/SUVs sit roughly $18k–$30k.

Don’t forget the on‑roads: stamp duty, rego, CTP, insurance, servicing and fuel can easily add $2k–$4k per year, more for thirsty SUVs and utes.

If those numbers make your budget wheeze, buy used, pay cash if you can, and keep your ego parked—shiny debt isn’t faster.

Hunting used? Tradingpost has a wide spread to sanity‑check prices before you commit.