Is there a way to know how much car I can afford?

Question:


Answers:

Which car should I buy out of these?

If you borrow, or take out a loan buy a car, the payment should not exceed 20 percent of your take home net pay on a 60 month loan. If it does, you need to save up a down payment to get it in that range. Note that I'm saying this on a 60 month loan. The insurance, gas and upkeep should not exceed about 5 percent more, for a total of 25 percent. However, if you have lots of other bills, than you have to adjust this for that. Really, the question is, once you pay all the bills on stuff you have to spend money on: rent, utilities, car, food, gas, etc. do you have 10 percent of your net take home left to save every month. Don't buy a car that you can't afford!

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