i earn about 2000 a month, is it possible to buy a car that cost 40k-50k?

Answer 1

if you want to live in it only you can.

basic rule of thumb to live normal:

1 month pay =

1st wk check pays: car, insurance, gas, maintenance
2nd wk check pays: rent, electric, gas, insurance
3rd wk check pays: food, clothing, gifts
4th wk check pays: savings, 401k, investments

To combine 2 weeks if not more of pay to have 1 item always results in debt and being unable to pay.

Not to mention, your income to value of car, they will want a very HIGH downpayment.

Answer 2

Do you have the money to pay for most of it up front? If not, I would think you can't afford it. Is the 2K per month gross? If the answer is yes 1/2 of your take home will go towards a car payment. Your payment for a 72 month loan with no interest and no money down would be 555-695 per month. That doesn't include interest and the taxes you would pay on the car. Unless you have no other bills I would not expect a bank to give you a loan for the car.

You also have to be concerned with insurance as well. Your insurance will probably be higher as well.

You would be better served financially buying a used car that you can more easily afford than a $40-50K car.

Answer 3

Well I guess you could but about 1/2 of your income is going to go into that car. So I wouldn't do it. The first guy is about right. Most people limit there car budget to a car that is about equal to 1 years salary. Although I've heard that guy Dave Ramsey say no more than 1/2 your annual income.

In your case that would be a car more in the range of 12K. Might ought to look at a used car. Maybe you can still get the model you want, just not a new one.

Answer 4

Possible, yes -- given that you provide a fairly healthy down payment on the vehicle and stretch out the payments remaining to the longest possible term.

In reality -- no. With the income you have stated, it is difficult to be able to purchase a vehicle in that price range -- especially if you are paying for your residence, bills, utilities, whatever else you need to pay -- and these are all paid AFTER taxes are already taken out of your income -- FICA, FITW, and any other taxes that your state, county, or city may add on.

Answer 5

If you have no other significant expenses it might be possible. At 45K, assuming you put nothing down and 9% interest for a 6 year loan, your payments would be around 800 a month. Then you have to figure in your insurance, maintenance, registration and whatnot too.

Answer 6

You can get a really nice car for cheaper than 40k-50k.....I wouldn't do it....the first guy is right on this one.

Answer 7

No; rule of thumb when taking out a loan is not go above 10-20% of your total income.

Answer 8

i think you could if you had enough to pay down on one,buying a car is usually based on income and expense that you have to pay out,so if you lower the amount of the vehicle by paying a lot down on it, i think you would qualify for one,but you,ll have to watch your budget ,if the bank see,s that your expenses are too high,you wont qualify for a loan,good luck,,i hope this help,s.

Answer 9

I think u can buy one so long as u keep ur expenses to the bare minimum, make a large downpayment and really, really keep a chk on ur expenses

Answer 10

is that take home or gross salary a month. i would say no unless you live at home and don't want to go out ever and do anything. Then "maybe" you could buy that.