J
Lv 6
J asked in Business & FinancePersonal Finance · 5 months ago

How Much Can I Afford On A Car?

Graduated school a year ago and I still live with my folks and plan on doing so for the next 5 years

I earn about $3000/mo.

My bills add up to $854/mo. which includes student loans, car insurance, electric, phone, etc.

I have an 03 honda accord at the moment but it's in poor shape and I'm tired of putting more and more money into it.

Was wondering if a $14k-$17k car is feasible or not

11 Answers

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  • 5 months ago

    Earn $3k a month and bills are around $900 per month. Lets assume you burned through another $600 a month on stuff, so $1,500 left over every month. Multiply by 12 months (one year out of college) and you should have $18k saved up...spend that.

    Or, it might have taken some time to get the job. In that case, work for 12 months, get that money saved and buy the car...do not finance it.

  • Jeff T
    Lv 6
    5 months ago

    My advice is that the only car that's affordable is one that you can buy without any payments.

  • Eva
    Lv 4
    5 months ago

    Feasible. What are you paying your parents for rent? If you aren't, you should be.

  • B
    Lv 7
    5 months ago

    save up for a couple (maybe four or five) months, and consider getting a second job, then after tax you should be getting at least $2400+ a month, and after your $850 a month expenses, you have at least $1550/month left, so save up about $1200 a month for five months and put this down on a $15,000 car, you will owe about $9,000 which is do able on your take home.

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  • 5 months ago

    of course it is feasible - u have almost 2000 to dispose off monthly. buy a new car with 5 years loan

  • 5 months ago

    You can buy a brand new car under $30,000 on a 36 month contract and pay less than $2,000 a month. [Your plan says you will not have any housing costs for FIVE years.] Then you will have years with no payments and no significant bills. If your credit is good you could score a low to 0% rate, and maybe a longer term. {Some used cars are a good deal, but new gives you all of the latest safety features.}

  • 5 months ago

    You can afford any car you can pay CASH to purchase.

  • Anonymous
    5 months ago

    Stick it out for another 9 months. You have 2k disposable income/month. In 9 months you'll have 18k in the bank. Then you go pay cash for a good used car that will give you another 10-15 years.

    There is zero excuse to borrow money for anything other than a home when your parents are still subsidizing your life and you have 2k/month in disposable income.

  • 5 months ago

    Dont buy it if you cannot afford

  • .
    Lv 7
    5 months ago

    You should spend not more than 30 percent of your annual income on a car. Buy a newer used car with cash and drive it close to 200,000 miles before getting rid of it.

    I bought my Nissan Titan with about 12,000 miles on it for $13,900 cash. I am still driving it with 152,000 miles on the odometer.

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