A $100,000 income sounds solid on paper, but it doesn’t mean you can comfortably afford any car you want. The average transaction price on a new vehicle has also reached an all-time high, so you may find that the monthly payment on a modest upgrade feels surprisingly steep.

According to Kelley Blue Book, the average price paid for a new vehicle in December was $50,326. The average new-vehicle manufacturer’s suggested retail price (MSRP) also set a record at $52,627.

Be Aware: Auto Experts Say Stop Buying These 6 Luxury Cars Immediately 

Learn More: 6 Low-Risk Accounts Financially Savvy People Trust for Reliable Returns – And How You Can Use Them 

Before you head to the dealership to grab a new car, here’s how experts suggest approaching the math on a six-figure income.

Also see what $40,000 buys you in the car market now versus five years ago.

“When you earn $100,000 a year, if you’re careful with your budget, you may be able to afford a $50K vehicle,” Melanie Musson, auto industry expert with AutoInsurance.org, wrote in an email. “That would put your monthly budget in a tight spot, though. So, unless you save up for a 20% down payment or more, it’s better to opt for a lower-cost vehicle.”

A $50,000 vehicle would be at the top of the budget for a $100,000 yearly income, but Musson recommended aiming for a car in the $30,000-to-$35,000 range. And she’s not the only expert who recommended staying around this price range.

“The question isn’t how much car people can afford but how much financial risk they are willing to accept,” explained Chad Watwood, an attorney at LawBike Motorcycle Injury Lawyers, who regularly handles car and motorcycle accident and insurance claims. “Keep total car plus loan/lease insurance costs down to around 10%-15% of take-home pay.”

Watwood suggested a vehicle price range between $30,000 and $45,000, but this also depends on credit scores, down payments and interest rates.

“People may focus on the monthly payment and forget about insurance premiums, repair costs and depreciation,” Watwood explained.

Read Next: I’m a Mechanic — 5 Money Pit SUVs to Avoid in 2026 

Musson noted that you don’t necessarily have to limit yourself to a car with an MSRP of $35,000.

“It’s a smarter move to buy a used vehicle within your budget. When you purchase a used vehicle, you don’t have to absorb the initial depreciation hit that a new vehicle would experience,” Musson explained. “You can get a vehicle with an MSRP of $50K two or three years later for $35K or less.”

Watwood also pointed out that you can put that extra savings toward your other financial goals and obligations.

“Paying less for a car can leave money available for emergency savings, retirement contributions and paying off high-interest debt,” he explained.

More From GOBankingRates

21 Insider Costco Moves That Could Add Up to Thousands in Yearly Savings 

5 Reliable Cars That Will Have Massive Price Drops Ahead of Spring 2026 

5 Clever Ways Retirees Are Earning Up to $1K Per Month From Home

9 Low-Effort Ways to Make Passive Income (You Can Start This Week) 

This article originally appeared on GOBankingRates.com: How Much Car You Can Actually Afford on a $100K Income in 2026