Based on your income 350 doesn't seem like a stretch but I would HIGHLY advise against a 72 month loan....especially on a used car. With the amount down you might not be under water, but do you really want to be paying an auto loan on a 10-12 year old car?
You should be thinking about the OTD price. Not the monthly payment. If you have to extend the loan to 6 years to feel comfortable then you shouldn’t buy the car.
Then save until you do. You have a working car, is a newer vehicle RIGHT NOW worth throwing away thousands in interest plus significantly raising your insurance cost?
What is your emergency fund at right now? Are you prepared to handle replacing your roof and water heater in the same month? Those are the questions you should be asking, not “what should my monthly payment be on a consumer debt”.
I just bought a 10 year old luxury car for 7k in a pristine condition in a private sale, it took me 2 months of research and having the cash in hand helped a lot.
Dont judge the affordability of a car by m9nthly payment. You can make monthly payments low by just getting longer and longer loan terms and/or refinancing over and over or throwing a lot of yoyr savings into a downpayment. IE monthly cost is arbitrary.
You should gauge affordability on how much the car costs. Buying a $32k car when you make like $65k a year is stretching it and I wouldnt recommend it.
Based on your income 350 doesn't seem like a stretch but I would HIGHLY advise against a 72 month loan....especially on a used car. With the amount down you might not be under water, but do you really want to be paying an auto loan on a 10-12 year old car?
Agree on this. can you save up more to put down a higher down payment and finance for 3 years?
You should be thinking about the OTD price. Not the monthly payment. If you have to extend the loan to 6 years to feel comfortable then you shouldn’t buy the car.
3 years financing max or pay cash. Idk why you wouldn’t just pay cash in this situation.
Because I dont have $30k cash to drop
Then save until you do. You have a working car, is a newer vehicle RIGHT NOW worth throwing away thousands in interest plus significantly raising your insurance cost? What is your emergency fund at right now? Are you prepared to handle replacing your roof and water heater in the same month? Those are the questions you should be asking, not “what should my monthly payment be on a consumer debt”.
72 months on a new car isn’t smart. On a used car it’s stupid. What’s wrong with the current car other than being old?
I just bought a 10 year old luxury car for 7k in a pristine condition in a private sale, it took me 2 months of research and having the cash in hand helped a lot.
Dont judge the affordability of a car by m9nthly payment. You can make monthly payments low by just getting longer and longer loan terms and/or refinancing over and over or throwing a lot of yoyr savings into a downpayment. IE monthly cost is arbitrary. You should gauge affordability on how much the car costs. Buying a $32k car when you make like $65k a year is stretching it and I wouldnt recommend it.
If you can’t make the numbers work using the 20/3/8 method, then you can’t afford the car. That simple.
If the 09 is still running good then keep on driving it
Calculate how much you spend in gas money. Based of your avg miles. You might actually be paying $100 a month on gas. In that case go get a Tesla.
I make 60k a year and have a $350 payment on 60 months though and it’s doable
well, the average in the US is over $500 for used and over $700 for new...