Assuming a 5K down payment and good credit? Car would be Lexus IS250, Infiniti g35 or g37, or BMW 328. Person has no other expenses, no rent, nothing.
2007-05-24 16:47:45 · 4 answers · asked by diablogtr7 2 in Cars & Transportation ➔ Buying & Selling
Good responses so far..but still didn't answer my question. I want to know how much money someone needs to make (SALARY).
2007-05-24 17:30:56 · update #1
Most lenders like to see a PTI (payment to income) ratio in the 'teens, maybe around 15%.
That means that if your payment were, say, 500 the bank would want to see at least $3333.00 a month GROSS income. Keep in mind that they'll also look at your credit score and history, plus any other financial obligations.
Seeing as you have no other financial obligations (lucky you!) and if you have a decent to good credit score/report, you should be able to accomplish what you're talking about with 3500 a month gross. That's 42K a year, give or take a little.
Hope that helps.
2007-05-25 09:47:27 · answer #1 · answered by J 3 · 0⤊ 0⤋
Provided that you have no other expenses, some banks like to see that your total debt obligation does not exceed half of your income. This means that if you have a $600 payment, a bank would like to see at least $1,200 per month in income with no other expenses.
In reality though, I would question whether this is the right thing to do. I'm assuming that you are young based upon your lack of rent payments. Locking yourself into a five year debt situation in which you may go upside down rather quickly, is really not a great way to start out financially. Can you afford it, maybe. is it smart...probably not.
2007-05-25 09:23:24 · answer #2 · answered by Jay P 7 · 0⤊ 0⤋
On average, for a 60-month term and good credit, assume $20/mo of payment for every $1000 you finance. With $5,000 down on either of the vehicles, you're looking at payments between $500 -$600/month. If you can afford that, plus insurance, you're golden.
2007-05-25 00:24:05 · answer #3 · answered by rlfesty 3 · 0⤊ 0⤋
It depends on how soon you want to get it paid off. The shorter the plan the lest you're actually going to end up paying for the car, but the more you're going to pay for the next few years. You want to pay it off as quickly as possible or you'll end up paying for lots of interest. I knew somebody who bought an 18,000 vehicle and set up a 5 year plan. He payed 2500 down and will end up paying 1/6 more for everything in the end.
I know I didn't answer your question, but just a few things to think about.
2007-05-25 00:18:00 · answer #4 · answered by Acura NOS 1 · 0⤊ 0⤋