A good rule of thumb: your monthly auto loan payment should not be more than 20% of the money you have available each month after you pay for your usual living expenses ? rent or mortgage, utilities, food and transportation, credit card payments, etc. When reviewing your budget, you should also take into consideration other associated costs including fuel, license, registration, personal property taxes and insurance. Call your insurance company before you purchase your car to determine what the monthly insurance cost will be.
If you're taking out a car loan, figure on a down payment of at least 10 percent. Lenders might be skeptical otherwise. If you have enough cash available to boost that percentage, do so. Cutting the principal of your loan will do more to slash payments than getting a lower interest rate.
If you have ailing credit, which can result from a pattern of late payments, you may find yourself in the "subprime" financing arena. If you have credit problems, you should first try to work with a consumer credit counselor or other advisor. It may be possible to consolidate debts or come up with a workable repayment plan. If you show a loan officer that you are taking action to overcome the problems, they may be more willing to grant a loan at a reasonable rate.
In addition, be sure to check out alternate sources for loans such as the credit union at your workplace, your bank, or other organization with which you are affiliated. As a last resort, dealers may offer special financing packages for those with credit problems. However, you might pay as much as four percentage points more for a loan.
Since your car is in the top three of the list where in you will be investing (house, business and car), you should be able to spend much for it. Whether you will acquire it via loan or cash that you have, the expenses that needs to be spent does not end there. To have a properly running vehicle, you should be also willing to spend on maintenance and services. This extra payments will actually reduce more expensive stuffs in the future like repair or part change.
Another factor to consider is the cost of upkeep- repairs and insurance are big factors for both new and used car purchases. If you can afford to buy a car but can't allocate the funds to repair vital parts, you are paying for something unusable.
The best thing to do is to check out insurance sites- allstate and geico have very easy to use rate estimate givers. Driverside.com is a great place to check out estimated repair costs and cost of ownership for autos.
That depends on how much you have to spend.
What kind of car a lawyer can afford depends on the lawyer's income and debt. Many lawyers in the United States graduate from law school needing to repay student loans, which reduces the amount of money they can spend on a car.
Depends on your needs and if new or used. You only get what you pay for when buying used cars and usually no warranty, but then lots cheaper than buying new. Contact your bank or credit union to get pre-approved for a loan amount, that way you will know how much you can spend or not spend.
Working out your potential car payments prior to purchasing a new car is always a good idea. Resources such as carpaymentcalculator.net can help you to determine how much you can afford to spend on a car and how much your car payment would be.
That depends on what you, personally, can afford or is willing to spend?
Read the consumer reviews on cars. Know what you want and don't want, know how much you can spend and if you can afford the monthly payments. The salesman is out to get you to buy the car and once he/she gets you into his cubicle he/she will do what they can to sell you. Take an older person with you for support and experience in getting a car.
If you cannot afford a new car, but considering to buy a used car and want to know about how much are the interest rates for new vehicles, then the answer is around 100-500 dollars.
A car loan calculator is a tool used to figure out how much your monthly car payment will be, based upon the cost of the vehicle, the number of years you'll be making the payments, the interest rate and the down payment. It is a very useful way to see how much you can afford to spend on a car, particularly before you go looking at vehicles.
Yes a car payment calculator will help you work out what you can afford. However, it will also tell you the exact amount needed for your payment which is important to know.
Assuming you can afford a second, that might make sense, depending on the condition of both cars, and depending on how much you're willing to spend on repairs. The decisiion comes to this, "Do I want to buy a second car, spend that money, and worry about insurance and repairs for two cars, or do I want to use one car and repair it?" It's your choice in the end.
Yes, you can pretty much insure any car if you can afford it.
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