How do you decide how much to spend on a car?
I live 20 minutes on a bike from work. So I never really needed a car other than some annoying times like a bad winter day, or when I want to have an impromptu plan with friends or go on a vacation. Now I have saved around 100,000kr. But I am really confused on how much I should spend on a car. I can buy a used car under 100,000kr paying the full amount in cash. And my salary is also good enough to afford a loan on cars like Ioniq 6 or Tesla model 3. I would prefer to have an EV just on principle. And I can get a used EV on loan with whatever is the going interest rate or I can buy a new one where a lot of time they offer 0% interest loans. But then there's also insurance and other costs to consider. It's all so confusing. I am single and live alone, no kids. On one hand I want to continue saving money and investing but at the same time it feels unnecessary to work so hard to make a good salary and still live a frugal life.
So my question is, how do you decide how much money you want to spend on a car?