buying How Much Can You Afford to Spend on a Car?

19:57  28 july  2017
19:57  28 july  2017 Source:

What's the Best Month to Buy a Car?

  What's the Best Month to Buy a Car? If you’re planning on ponying up for a new car this year, know that certain months may be lighter on your wallet than others. Avoid Spring Spring is the least budget-friendly season; warmer weather attracts people eager to spend after enduring a lengthy winter, especially if they have tax refund checks in hand. But in summer, fall, and winter, the laws of supply and demand are more nuanced. The optimal time to head to the dealership depends on what you want to buy. Inventory moves slower in winter, leaving dealers more likely to cut a deal. They’re also incentivized to clear their lots in the summer to make way for next year’s models. Spring is the least budget-friendly season; warmer weather attracts people eager to spend after enduring a lengthy winter, especially i

“ How much car you can afford ?” is a different question than “ How much you should spend on a new car ?” I’m an absolute car guy and I can still manage to spend no more than 20-30% of my income on cars . Consider this: I bought a 2001 BMW in 2009 for k.

How Much Can You Afford to Spend on a Car ? Try again later. If you don't have a clear picture of how much you can actually afford , it's all too easy to bite off more than you can chew getting behind the wheel of a new car .

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If you don't have a clear picture of how much you can actually afford, it's all too easy to bite off more than you can chew getting behind the wheel of a new car. Many people fall in love with a dream car and enter a state of denial when it comes to the math. Or they let themselves be lulled by a friendly salesperson into buying more options than they need or extra-cost items they can do without, like an extended warranty service contract.

How to Budget for a New Car

  How to Budget for a New Car You need a new car. And by new, we’re talking about something better than your old car. It could be showroom fresh, it could be a couple of years old, or it could be a thoroughly used but not abused car. Whatever the case may be, it needs to solve a problem, and that problem, for whatever reason, is your old car. If you’re like most people, you’re going to finance this purchase. Even if you’ve got a pile of cash in the bank, interest rates during the first quarter of 2016 remain low enough that taking advantage of a low-interest loan makes sense, allowing savvy investors to put their money into an asset that will appreciate.

How much do Americans spend in a year on cars ? All depending on whether you are speaking of purchasing a car or in repair costs. What can you do to figure out how much you can afford when buying a car ?

How Much of Your Salary Should You Spend on a New Car ? In this guide, we’ll explain how much you can afford to spend on a new car , compared to the amount you earn every year.

Affordability, of course, means different things to different people, and usually hinges on both household income and existing obligations.

At the same time, this is a good opportunity to shop around for money. Interest rates are still lower than they were 10 years ago, and lenders have loosened up their credit requirements in the past two or three years.

Below, we provide insights and strategies for getting the most car for your money. We'll tell you how to estimate what you can afford, and how and where to shop for the most favorable loan rates.

What's Your Budget?

Take an honest look at your current finances. The fancy word for this is doing a “cash flow analysis,” but it's really just a monthly budget. See how much you currently spend on essentials like mortgage or rent, utilities, food, and clothing. Add other monthly payments, such as student loans, homeowners insurance, cell phone, internet, and cable TV. Don't forget to include local taxes, if any, not deducted from your paycheck. It's important to leave yourself a decent cushion for entertainment, vacations, emergencies, and retirement savings.

Supercar Alternatives - This, Not That

  Supercar Alternatives - This, Not That If holding onto your savings is important to you, then you know right now is about the worst time ever to get yourself a used NSX. There's never been an affordable time in history for you to own a MkIV Supra. And while something like Mitsubishi's 3000GT VR4 might seem affordable, the economic aftermath of you owning one is just as expensive as that NSX. So what's a minimum wage-earning chump like yourself supposed to do? The next best thing, of course. Behold, the JDM supercar alternatives for the rest of us. Research Research New Used New & Used Make (e.g. Cadillac) Model (e.g.

Buying a boat is a very expensive proposition. Not only does it cost a lot to buy a boat, boats are also much more costly to maintain and operate compared to a car or truck (fuel, insurance, storage fees, repairs, routine maintenance, marina fees, etc.).

First Time Car Buying Guide. How Much Car Can You Afford ? The result of our car affordability calculator shows you a sensible amount to spend on a car . And yes, it might be far lower than you might think.

Now look over your bank and credit card statements for the last two years. This should give you a solid idea of where all the money goes. You may find places where you can cut back, or you may already be running pretty lean.

Years ago there was a common rule of thumb called the 20/4/10 rule that was used to estimate auto-ownership affordability. That means making a 20 percent down payment, taking out a four-year loan, and devoting no more than 10 percent of your gross income each year to the loan, including car insurance.

In current times that guidance just doesn't work for people. New-car prices are too high for a three- or four-year loan, and incomes are stretched too thin. As a result, car buyers are taking out longer and longer loans to keep the monthly payment bearable. The average term is now 68 months (5 1⁄2 years), according to Experian Automotive, the market-analysis arm of the Experian credit-reporting agency. Scary fact: 28 percent of all new loans run from about six to seven years.

Are Americans Being Priced Out of New Cars?

  Are Americans Being Priced Out of New Cars? <p>Many people living in lower-income areas simply cannot afford new vehicles, says Fortune.</p>Fortune is investigating the car-buying experience, and how we can deal with it. The publication's latest article focuses on lower-income families that already struggle to afford to live in huge cities. For instance, if a person who makes average income in Miami applies the 20/4/10 rule when buying a car, they can spend roughly $13,000 on an automobile; remember, new cars cost on average more than twice this amount.

Before you start car shopping or inquiring about financing, take these 3 steps to help you decide how much you can afford to spend on a new or used car .

But you wouldn't ask a car salesman how much you should spend on a car (we hope!). Smart Move 2 Spend no more than 36% of your income on total monthly debt payments. The more non-mortgage debt you have, the less you can afford to spend on a home.

Super-long loans are not a great idea, even if it seems a lot of people are doing it. Unless you can come up with a really large down payment, you will owe more than the car is worth for many years to come. Lenders call the period where you owe more than the car's value “being upside down.”

If you have to sell the car or if it gets totaled before you reach the break-even point, you'll wind up making continuing payments on a car you no longer own. The extra years of payments also mean extra years of interest, and that can really add up.

Many people trade in a car they still owe money on. A dealer who arranges financing then rolls whatever is due on the old loan into the new loan. This may look like an attractive proposition if you can't pay off your old car before selling it.

But beware. In essence you'll be paying off the balance due on the old car for the entire term of the new loan. And that balance due will be affected by whatever the dealer offers as a trade-in allowance. If the dealer gives you a lowball trade-in allowance, you could be upside down for a long time.

Price Your New Car Insurance

Ford plans to kill cars in order to spend on trucks, SUVs and EVs

  Ford plans to kill cars in order to spend on trucks, SUVs and EVs Some Ford car nameplates will go away.Ford is gearing up for the future with a new strategic plan, and that means massive overall spending cuts and, on top of that, redistributing development funds from cars to much more profitable trucks and SUVs. That means, basically, that some Ford car nameplates will go away – expect some educated speculation on that soon. But first, the numbers and a quick dive into the details of Ford's announcement.

How you divide up the remaining money — and how much of it you spend on a car — is up to you . You want to spend wisely so you don’t find yourself with bills that exceed what you can afford . Break it down.

The type of car you can buy – and how much you can spend – will depend on the monthly payment you can truly afford . If you want even more freedom in your monthly expenses, you should strive to spend less on a car than you can afford to spend .

Your cash-flow analysis will tell you how much you have left over to devote to car ownership each month. Your monthly loan payment has to be considerably less than that so that you can also cover costs such as fuel, maintenance, and insurance.

Once you have a candidate car in mind and know its approximate price, call your insurance agent to ask what it would cost to add it to your policy.

If you've been driving an old car up to now, you might be surprised at how much your rates may rise. Obviously it costs more to insure a car valued at $30,000 than one valued at $10,000. Though you might have dropped collision coverage on your old car to save money, you'll want that coverage on the new one. Plus, it's also required by the financing company if you have a loan or a lease on the vehicle.

Your Monthly Payment

As far as car selection is concerned, the point of the budgeting exercise is to determine the highest monthly payment you are comfortable with. That is information you keep to yourself when negotiating with a car salesman, however.

Why keep that information close to the vest? Because the moment a car salesman discovers the highest monthly payment you can bear is the moment he can structure a deal that will use every bit of it, and possibly put you into the most expensive car he can. The easiest way for him to do that is to stretch out the loan. That also gives a dealer who arranges financing the ability to build in a higher than necessary interest rate without you realizing it.

There's A Sweet 2015 Corvette Up For Auction Right Now If You're Not Afraid Of A Little Work

  There's A Sweet 2015 Corvette Up For Auction Right Now If You're Not Afraid Of A Little Work When you’re looking for a good project car, it’s easy to get caught up on the little things that are wrong. Sometimes, too much focus on the details can keep you from snapping up a really sweet deal. Take this 2015 Corvette up for sale on Copart right now. Sure, you look at that picture and you can see that it’s missing some side marker light lenses and a lot of the rubber will need to be replaced, and there’s some discoloration of the paint. But look past that, and what do you see? A Corvette, right? Well, something that takes up at least roughly the same amount of ground area as a Corvette, at least.

The next, and much more difficult step, is to determine how much you can afford and want to spend on a new car . Just because you can afford an expensive car doesn't mean you should buy one.

Risky financing can make it easy to spend too much on a car , which many borrowers do. Think about how spending more on a car relates to other purchases you may want or need to make, right now and in the future. If you can truly afford it, don’t be afraid to treat yourself.

Making a sober assessment of what you can comfortably afford might tell you that you shouldn't buy the car you had your heart set on right now. Then you might either consider a cheaper car (perhaps even a comparable used car) or postpone the purchase until you can save up a larger down payment. Another option is leasing.

Test-Driving Monthly Payments

How much car will a given monthly payment buy? Numerous online loan calculators can help you do the math. One that's especially easy to use is the “affordability calculator” at, but there are many others. Among other things, they let you plug in a monthly payment of your choice, along with other assumptions, and see the total price of the car that payment will finance.

How Much Car for a Monthly Payment?

When you’re buying a car, the dealer will often try to get you to fixate on how much you can afford in monthly payments. He’ll then structure the deal to give you the most car for the lowest monthly payment. Sounds great, right? It isn’t. Sure, the longer the loan, the less you’ll pay each month. But you’ll actually end up paying more for the car in the long run, because you’ll be paying more in interest payments. This table calculates how much you will have to pay each month for a vehicle, assuming an annual interest rate of 3.5 percent. Buyers paying off their vehicle in four years pay 6.8 percent of payments in interest. Those taking five years have 8.4 percent of their payments going to interest. And those taking six years have a whopping 10 percent of payments going to interest.

Auto Loan Amount

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Ralph Lauren's $350 Million Car Collection Takes Center Stage at New York Fashion Week .
<p>Lauren talks about his insane dream garage and combining his two favorite hobbies: cars and clothing.</p>CarJam TV recently sat down with the billionaire to discuss his collection and the origins of his obsession. While Lauren's collection is filled with many of the most sought-after cars in the world, he showed that he's more of a Jay Leno than a Floyd Mayweather, meaning that he collects the cars based purely on his own interests rather than as a fashion statement (not that the latter is a bad thing).

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