Before you get the keys, ask yourself this: how much car can you actually afford?

Gross income, tax rate and savings are just some of the factors that must be weighed up before you make that big decision

It can be difficult to weigh up how much to spend on a car, and whether or not to take out a loan.

As a rule of thumb, a car should never cost you more than 35pc of your gross income. Using that rule, you would need a gross income of €114,286 in order to be able to afford a brand new Tesla Model 3.

But that’s the best-case scenario. Committing 35pc of your gross income to a car is a lot. Realistically, 15-25pc is what most people will be aiming for.

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