A Sensible Starting Point
The most sensible way to approach this issue is to organize your finances and evaluate your net worth. Your net worth is the amount by which your assets (what you own) exceed your liabilities (what you owe). In simple terms, assets minus liabilities equal net worth.
You can figure out your net worth by listing your assets and liabilities on the Net Worth Calculator. This will give you a clear picture of your financial situation and allow you to plan how much you can spend and where the money will come from.
If you are planning to pay for your car by using money from your savings account or by cashing in some stocks or bonds, use your net worth statement to estimate how much you can comfortably afford.
If, like most people, you're thinking of financing your car through a financial institution or automobile dealership, your net worth statement will be a sound starting point for loan discussions.