Can I afford this car?

Question

I will not say which car specifically to prevent biased answers. I'm a single male, 22 years old. I am looking at paying about $17.5k ($18.5 after taxes, etc.). I will be getting a loan, putting $5k down and financing the rest. My payments will be about $320/month (7.5%, 48mos.). I bring in $1900/month after taxes (+$200 in supplemental income some months). After everything is said and done (factoring in rent, insurance, utilities, gas, groceries, etc.), I'll have anywhere from $500-800 saved each month.

Can I afford this car? Thanks!

Answer 1

Given the information, you can indeed afford the payment. The banks will only approve you for $285-380 a month based on your income anyway. Most importantly, it's not what we think you can afford, it's what you think you can afford. Like I said, from a banks standpoint, you "can" afford it. Keep in mind, some banks base the payment on 15% of your gross income and some go up to 20% thus meaning you can afford a $320 payment. I hope this helps and good luck! If you need any more info., I will check your details later and advise.

Answer 2

So you are saying that after all expenses are paid for the month, including the car, you'll have between $500 and $800 a month left over?

That's not too bad. Just make sure to save some of the extra money every month for an emergency fund.

Answer 3

seems possible. make sure you shop around for the vehicle and haggle over the price at the dealer. good luck.

Answer 4

that depends on how much you spend in between payments i.e. going out, clothes, etc. if you really want it i think you can do it