1. $12,000
2. 6.78%
3. $850 every 6 months

 

could you guys throw in your monthly payment too? if you dont mind. just trying to get an idea for how much its gonna cost.

 

The general rule of thumb is not have a car payment that is more than 18% of your gross monthly salary.

Say you make a $2000 monthly gross income, your monthly car payments shouldent exceed $360 a month.

For car insurance, thats hard to say, you cant compare peoples car insurance and think you will be getting the same rate.

Just go to your insurance company and have them make up a quote.

 

Debt To Income Ratios are used frequently by lenders to determine offers, such as interest rates. If your debt to income is over 40% you might have difficulty finding a lender or have to pay a higher interest rate.

 

No offense, but how are these 3 factors going to affect you? They aren't. I put 17k down, and my rate and insurance are low. Odds are, you're not in this boat.

I guess you should be commended for doing financial research, no matter how meaningess it will be.

An insurance quote is a phone call away. You know what you have in savings for a down payment. A bank or credit union can tell you what your interest rate is.

 

1. $21,000
2. $11,000 @ 3%= $320/36mo
3. dont know exactly but it's $200 cheaper a year then my 2000 Dodge stratus

 

Where did you come up with 18%. I have never heard that before and would like to know where it comes from. Not criticizing but it is different from person to person. Does he have a mortgage? Does he have any other debt? Does he have other cars? Does he have kids? etc...

There are a lot of factors but I am curious where 18% comes from. I guess the other 82% is for other things but would like to know who came up with that and how they broke it down and came up with 18% for a car.

I want to see equations and calculations please, lol, just kidding!

 

you forgot to ask what kind of insurance. im sure some people wont get full coverage on a japanese car.

 

Explain.

 

i'm not sure of all banks, but the way our banks do it is like this:

take your gmi (we'll use 2k as a hypothetical).

2000 gmi

you then lose 40% for col (cost of living - gas, food, clothes, etc)

40% of 2k = 800

that leaves you with 1200.

then you lose a rough guesstimate of your tax bracket. for someone making 2k, that would amount to about 25% (fed, state, soc).

25% of 1200 = 300 (leaving you with 900)

of the 900, they now deduct a standard 100 for insurance (no matter whether you pay more or less).

that leaves 800. what about rent? if you share a place, then let's say your share is 300. that leaves 500.

$500 seems like it might be enough, right? now the banks check your credit - how much do you owe, etc. they deduct all that from the $500. let's say you owe about 150 to all your credit cards per month.

that leaves you with 350. if the car you're trying to buy costs 300, you're cool. if it comes close to 350, then they may think you're stretching yourself (and they'll show this in the form of an interest rate).

you can plug in your own gmi to see how it may work out for you.

anything under 12% is generally good. first time buyers typically see somewhere in the 10%+ range, based on credit.

once again:

gmi
- 40% col
- tax (use paystub to figure yours out)
- $100 ins
- rent/mortgage (your legal share)
- minimum monthly debt obligations

voila. there you go for your maxpay.

questions, comments? reach me online.

 

Why do you take 25% of 1200 for tax? You should take 25% of the full 2000 gmi. I don't think our gas, food and clothes are tax deductible!

 

I don't know about where you live but around here unless you pay a car off in full when you purchase it, the lender normally requires full coverage insurance no matter what a person may or may not want.

 

oops, you're right. tax, then col! my bad! i made the post with my wife and father rushing me so that we could go pick up his miata.

 

Hey guys, Just wonderin, how much do you guys pay for your car every month? I'm talking car payments & Insurance. I'm trying to figure out how much I can afford.

I want to pay around 450-500pr month for the car but I have no clue how much insurance is. Could you guys just post some rates of insurance and car payments for me, I just want a clue as to how much it will set me back. thanks alot!!

 

payment $603 - I put almost nothing down, I paid off my credit card with money I had saved for the down payment.

insurance is about $75 - State Farm - full coverage with $500 deductible