answersLogoWhite

0


Top Answer
User Avatar
Wiki User
Answered 2015-07-15 18:54:21

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.

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Your Answer

Loading...

Still have questions?

Related Questions

What vehicle that has over 100000 miles would you buy if need a car but cant afford new car?

That depends on how much you have to spend.


How much car can a lawyer afford from their salary?

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.


Where can I find an online car loans calculator?

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.


How much should I save for 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.


What is a good sports car that's affordable?

That depends on what you, personally, can afford or is willing to spend?


How much are used auto interest rates?

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.


How much does a Lotus car cost?

If your asking that question, then you cant afford it.


What is car loan calculator?

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.


Will a car payment calculator help me determine what kind of car payments I can afford?

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.


How can you insure lamborghini?

Yes, you can pretty much insure any car if you can afford it.


How much does a car dealership spend on gas a month?

wings


How much money should you make annually to afford a 60000 dollar car?

600,000


How much does a 2010 Chevy Camero cost?

If you have to ask about this car, Then you cant afford it anyway.


How do you get the down payment on a car?

You make more money than you spend and put the overage in savings. If you're not making enough to save the down payment then you're not making enough to afford the car.


I drive a lot of miles per year and assuming I can afford to buy more than one car does it make more sense to spread out mileage over 2 cars or just put more miles on one car?

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.


How much money do car company's spend on marketing?

The best marketing is the car itself on the road... Chao


Do you think 4000.00 is too much to spend on a car that has 137200 miles for a used car?

Yes if it is GBP


What is a reverse auto loan calculator?

A reverse auto loan allows you to enter monthly amount you want to spend, anticipated interest rate and trade-in value of your existing car, in order to calculate how much you can afford on a new vehicle.


What should I know before I have to Buy Car?

You have to decide if you want a new or used car. Then after deciding how much you have to spend you can shop around for the best deals. You may have to know how much milage you are willing to accept on the cars and quotes on the make and model to make sure you are getting a good deal.


Where can I find a calculator that helps me determine how much I can afford on a car payment?

Yes there is. There are several sites on the internet that have calculators that can help you determine if you can afford the monthly car payments. They will also be able to tell you the in-tress on the payments.


How much time does an average consumer spend on buying a car?

There is alot of factors that would make it impossible to calculate. Some spend months some people spend 4 hours because they need a car now.


How much do people spend on average car wash?

10-40 dollars


How much are people willing to spend on a new car?

About 8,000-15,000 dollars.


How much money do you spend on car maintenance per month?

$100-$350


How much money spends a German citizen in a car?

I don't think money can spend a person, in a car, in Germany.