How much to spend on a car?

Question

What's your guys opinion about how much to spend on a car considering that you have no expenses except for insurance. Would you rather pay $850 a month for a awesome car(fill in) or $500 a month for a descent car(Civic si) and you make $2000 a month? (This is just for like 5 years or so)

Answer 1

I would buy a normal car for like $300 a month. You still need gas, oil, tune ups etc. you could also use some of the left over money to do something cool like paint job, rims, lower or raise it, and buy all the accessories to go with it.

Answer 2

Decide now, before you go looking, what you feel you can comfortably pay, then reduce that by 10 or 20 percent; that is the least painful scenario, believe me.
I assume you're a young person, living at home; 200 or 300 a month is probably the most you should look at paying, because full coverage insurance is gonna' be about 700 - 1000 a year for any sort of sporty-type car.
Expenses will eat you alive, particularly if you're paying out every little piece of extra money you can spare for a car payment that straps you so bad that all you can do is look at this "awesome" car sitting in the driveway 'cause you can't afford gas, let alone going out with friends, on dates, etc.
The best option is to buy a 2000 - 4000 car for cash, then get an automatic saving withdrawal set-up at your bank; put the 500 a month in there, five years from now you can buy a new car for cash or put a nice down payment on a house or condo.

Answer 3

Five years is a long time to pay for something that loses value over that period. I chose to pay a little more per month and pay off the loan in three years instead.

Also consider that your "no expenses" situation may change over the course of five years. Hopefully your income will go up as well, but it doesn't always happen that you get a huge increase in income every year.

Cars depreciate in value. I'd advise anyone to not spend the big bucks for the "awesome" car, but only you know what you really want. Just make sure you're not the idiot who buys the awesome car then either gets it repossessed or has to sell it within a year 'cause they can't meet payments.

Answer 4

None of the above. Save your money and pay cash for a car that is 2 to 3 years old. A car's value depreciates 60 % in the 1st 2 years. So let someone else take the hit. Look for a dependable car with low mileage and you can't go wrong. It's a whole lot better than paying all of that interest over the life of the loan. Check out www.daveramsey.com There is great advice on this site!

Answer 5

If I already have a daily driver that runs well
I'd spend it on a classic vintage Muscle car like a
70 440/6 pack Superbee., 70-72 340 Duster, or a 87 Grand National
( cars that appreciate in value, are pretty quick and give lots of thumbs up from passing by motorists )

Answer 6

Get a slightly used car (5-20k miles) - it's a far better value and the dealer/seller usually has more flexibility in final pricing. In particular American brands don't seem to hold value well, yet you can get a pretty good car for less cash.

I wouldn't spend 1/3 of your income for transport. You'll need cash for other things for the car - oil changes, gas, tuneups, etc.

Answer 7

5 years? id buy a pre owned Honda for 300 a month they last for ever! i would not pay 850 for any car !!!! that is what my new 3/2 house on 2 acres costs!

Answer 8

You should maybe think about buying a car for $1000 for now
and saving your money and buy a nice car for cash. The interest you will save is a lot and it will get you started on how to save. Once you accomplish that you will be set for a very comfortable financial future.

Answer 9

if you save 350 a month for 5 yrs thats $21,000(plus a little interest), that's enough for a down payment on a house! You'll also save quite a bit on insurance so you can use that saving to reward yourself in other areas in the meantime

Answer 10

you're able to desire to take a seat down and do a funds and decide the place each penny is going. Then be certain how maximum of the money you have left to pay month-to-month for a automobile. coverage, maint., working value and taxes would desire to be seen additionally. Conservatively in case you could no longer pay the vehicle off in 36 months you could no longer arise with the money for it. greater people right here interior the states would desire to save on with that rule.