Can I afford a car?...Based on these figures....READ ON PLEASE?

Question

Based on solid budgeting advice and experts, One's rent should not exceed 27-29 % per monthly figures... TAKE HOME income is 2200 Euros per month, our rent TOTAL is 525 per month....But can we afford a car?..What percentage is your monthly car payment supposed to be around?...

Answer 1

Car payment no more than 10-15% monthly take home. Try this:

Instead of paying 300 month for a car, buy a cheap one for 10 months. Put 300 aside per month for yourself, and after 10 months, you'll have 3000. Sell the old car, take the money and buy about a 4000 car. Do the same for 10 more months, sell the 4000 car, and now you can pay cash for a 7000 car. Keep doing this until you get the car you want, and the best part is, after 10 months, you'll never get tired of the one you are driving. Plus, it won't depreciate much since you'll only own it for 10 months. When you finally get a car you want to keep for a few years, keep making the payments to yourself, and you can pay cash for your cars forever, without paying any interest to a bank.

Answer 2

The better question is how much money are you currently left with at the end of every month? If you're spending everything you make, you obviously cannot afford a car (and insurance, and maintenance, etc). If you're left with some euros or so at the end of every month (after paying for everything plus entertainment and the emergency savings fund), then that's what you have to work with.

In a word - you need to start keeping close track of your budget and understanding where ALL of your euros go every month, as a car is a significant expense and you're earning a rather insignificant amount of money right now. No insult intended - I made that much at one point too.

Answer 3

Depends on what type of car you're thinking of getting. If you want some big, huge luxury thing then probably not. If you want an old reliable semi-junker probably.

But there is more to being able to afford car besides just the car itself. You've got gas, upkeep, repairs, insurance, license and anything else associated with it.

Answer 4

What kind of car? How much are the payments? Need more info to calculate, but your car payments should not be more than 10-12% of your monthly gross.

Answer 5

I continuously had what mothers and fathers now-a-days call an "underprivileged" Christmas. contained in the days that i presumed in Santa he ought to write me a letter each 3 hundred and sixty 5 days on Christmas explaining the 'lack' of presents. many of the time it grow to be something geared in the route of an elf being ill and unable to make the present in question, or something to that tone, yet I not in any respect made a fuss. maximum unspoiled little ones are grateful to get a present and are hellaciously excited for Christmas to even come! i'm not particular the way you adult adult males cope with Christmas and Santa Claus (in the journey that your little ones have self assurance) yet you may continuously supply them a letter from Santa and clarify the shortcoming, or you may tell them that mommy purely wouldn't have the money to provide them each thing. youngsters will continuously have a catalogue 2 miles lengthy, and except you're a stupid figure, you gained't get them each thing on it. many of the time, you may tell what they extremely decide on, and what they 'type of' decide on. sadness stings, yet being broke and unable to devour stings a lot worse.

Answer 6

Make sure you budget for savings before anything else....if you cant save money to drive the car you want, than look for a cheaper car, or a used car.

Answer 7

put a pencil to your own figures...utilities, current debt service, insurance, gas, groceries, any other mandatory expenses. if you don't need it (access to public transportation) dont get it.