I want to know how much money i should spend on a car payment ONLY. I make about 3200.00 a month. is a 388 payment too high. My rent is only 600.00 plus bills. WHat do you guys think? PLEASE HELP
2007-09-14 05:43:21 · 11 answers · asked by ProudMoM 2 in Business & Finance ➔ Personal Finance
Do you MAKE or TAKE HOME $3200 a month?
You need to sit down a do a quick budget. List all your bills, incl using your car insurance and gas/maintenance. This will give you a clear picture of how much you can spend for a car budget.
The "How much do you want your monthly note to be?" question is a diversionary tactic that car dealers' sales people use to keep you thinking about how much you will be writing a check for monthly rather than how much you are paying for the car. Don't forget you are buying a car, stay focused on how much you are paying for the car.
The best tactic is to get approved for a car loan at your credit union or bank first. Then shop for a car based on the price of the car. If the dealer can beat the loan rate, all the better, DO NOT rely on the car salesman to get you a loan. You are swimming with sharks at that point.
There are 8 ways that a car dealership makes money off of you.....EIGHT....if you don't know these, you are at their mercy and trust me, they have no mercy.
1 New car sale over the dealer cost
2 Rebate. Every car gets a rebate to the dealer from the manufacturer. Even if they sell at their 'cost', they still make money.
3 Trade in. The buyer always gets screwed on the trade in. Always.
4 Financing. The dealer and the salesman get a commission for 'selling' you financing. They pretend like they are doing you a favor, but they are not. They are not looking out for the best financing for YOU, they are looking for the highest commission for THEM.
5 Extras. They make hundreds on 'dealer prep', fabric protection, extended warranties, accessories, options, etc. Don't be a fool here, don't pay their inflated prices for this stuff.
6 Service. Warranty Service. In addition to selling extended warranties, they get paid by the manufacturer for every warranty repair they do to your car. Beyond warranty Service. Dealer service departments charge much higher rates than independent auto repair shops.
7 Parts. Need a taillight for 2001 Mercedes? Pay your dealer Parts department three times what the part costs.
2007-09-14 06:14:14 · answer #1 · answered by DJ 7 · 2⤊ 0⤋
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RE :What should my car payment be in relation to my monthly income?
I want to know how much money i should spend on a car payment ONLY. I make about 3200.00 a month. is a 388 payment too high. My rent is only 600.00 plus bills. WHat do you guys think? PLEASE HELP
Follow 10 answers
2016-12-03 18:56:20 · answer #2 · answered by ? 6 · 0⤊ 0⤋
This Site Might Help You.
RE:
What should my car payment be in relation to my monthly income?
I want to know how much money i should spend on a car payment ONLY. I make about 3200.00 a month. is a 388 payment too high. My rent is only 600.00 plus bills. WHat do you guys think? PLEASE HELP
2015-08-07 16:49:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Normally all loan payments put together shall not exceed 50% of the monthly income.
To me, the above figures look OK.
2007-09-14 05:49:06 · answer #4 · answered by Swamy 7 · 0⤊ 1⤋
I agree the number should be zero. Paying interest on a car which falls in value is a very bad use of your money. Pay cash, you will save yourself a lot of money in interest. Even better, buy a two- or three-year-old car and drive it until it is ready for the junkyard, you will save yourself even more money.
Some car companies are now offering zero percent interest loans, that is different.
2007-09-14 05:56:03 · answer #5 · answered by Adoptive Father 6 · 1⤊ 0⤋
I'm a daveramsey.com fan. He would say pay cash and save the interest. With your income, and a few months of intense saving, that shouldn't be a problem.
2007-09-14 05:51:58 · answer #6 · answered by starfishltd 5 · 2⤊ 0⤋
$388 is 12% ofyour income. That should be ok.
2007-09-14 05:49:09 · answer #7 · answered by WC 7 · 0⤊ 0⤋
is 3200 after taxes. we make about 1800 and our payment is 221. we comfy with it. i think youll be ok. as long as you dont have a lot of bills--like credit card debt. you gotta eat right..!!!
no but seriously 388 is ok.
2007-09-14 05:52:15 · answer #8 · answered by nikkylyn 5 · 0⤊ 0⤋
10 - 15% if you are a homeowner. That is based on experience.
2007-09-14 05:46:52 · answer #9 · answered by Fedele 2 · 0⤊ 0⤋
You should save until you can buy one with cash, not loans.
2007-09-14 05:51:46 · answer #10 · answered by joe 2 · 2⤊ 2⤋