Ok, so I bring home approx. 1200 per month, $100 goes to phone and the rest is free, can i buy a new car?

Question

if so whats my price range?
this is a new job(customer service)
vehicle is betwen 18K and 27k
REMEMBER TO INCLUDE INSURAnce

Answer 1

If you need transportation for your job, then buy a car. If you already have a car that's not looking so good, then try to make it last before buying a new one. And if you by a new one, it should really be a used car, but definitely under 20k.

Answer 2

Given that you don't have a lot of expenses, if I were you, I'd be doing other things to build a nest egg before I even thought of buying a new car. If you already have a car and it runs well, there is no use of buying another one.

Think about setting aside a savings account, investment account and IRA. Otherwise, if you currently don't have a car, buy a used one that's not too expense, i.e by one that costs around $4000 to $5000, rather than buying an 18K to 27K car that you can't afford. You may not afford those cars because, you may have a car payment of about $500/month, then high insurance premiums because you are young. You might end up paying about $300/month insurance on the car, which might be more if the car is a luxury and/or sports car.

All in all cars between 18K to 27K, might cost you at the very least $800/month. Not to mention every 3 months it will need maintenance and gas might cost you around $200/week, so you'll actually be spending your whole month's pay or more on this car and end up in a financial hole. Why do you want to go into such debt, when you don't need to ?

Answer 3

Do you have any idea what a foolish idea it is to buy a new car? Do you realize you are giving up potentially hundreds of thousands of dollars by spending 27,000 on a car? Lets take the example, if you put 450 away each month for 4 years and get a return for 6% you will earn at least 25000. Keep that money invested at a 5% return until you are 62, and imagine how much money you will lose. Do you understand how to become a millionaire? How about how to be rich enough to not eat cat food in retirement. Buy a used car and pay 150 a month put the rest in the bank and be twice as smart. Besides, rent free living doesnt last forever, but having to take care of yourself does. SAve Save Save SAve.
Did I tell you to save?
Good Luck

Answer 4

Um, you should NOT be buying a $20,000 car if you can't pay for it in cash. Insurance alone is going to be really expensive--$150-$300 a month on average. Also, you should NOT be buying a new car unless you can pay for it in cash--buy a 1 or 2 year old car at least and save 30% compared to a new model.

If you're only bringing home $1200 a month, I'd be saving my money, living with a roommate/family member, and buying a CHEAP car--or taking public transportation.

Answer 5

1100 dollars a month sounds like a lot of money for car payment, but that is only 13K a year annually. Also, your income is 14K a year. Not many places will give you a loan at a decent rate.

Also, don't forget gas, maintenance, and all other stuff that comes with car ownership.

Based on your income, your best bet is to save that money for about a year and buy something like Honda Civic with paying half of it in down payment.

Do you really want to (can) spend that much of your income for car? No saving? No other responsibility? How stable is your employment? You have to think about that too.

Answer 6

How often would you use it, if you want to do recreation in it plan on that like what your going to be spending the money on. You probably could lease one cheap and have a new car, or get a slightly used for a lot cheaper and still be like new

New cars are very expensive to have and to hold because in four to five years after all that money spent,.guess what you hae a used car LOL

Unless you have a garage or you plan to cover it nightly you will have a used looking car dings an all

Answer 7

If you don't have to pay rent, go for it. most you'd probably pay for a new car is 400 something per month, depending on your credit...with maybe another 200 or so for insurance.....

Answer 8

so you got $1100 to play with and your asking if you can afford a new car.. hmmmm, let me think for a minute......yes