how do i know how much car i can afford for?

Malaysia
November 16, 2009 3:26pm CST
hi all mylotters tata.. during these rough economic times people need to watch their money a little closer, however, basic needs still arise causing you to fork over more money, with the idea in mnd, we would like go over some basic things to consider when you are making an automobile purchase, ther are so many options available when it comes to buying a car now that it is very important you do your homework first. but how do i know how much car i can afford? maybe there is some test for me?or else? please teach me thanks for sharing.
1 response
Marty
@marty3888 (2355)
• Acme, Michigan
16 Nov 09
One good way, again, because of these tough times, is look how much you bring home a week. Not how much you make, I'm talking about after taxes. First of all, let me just say, I don't have a car payment at all. I have a 1993 Saturn 4 door. No cD player, no remote locks,(I miss that) and It didn't even have cup holders. I had to buy one. But if you're going to have a car payment, I would make it as close to 10 percent as possible. say you bring home 300 a week. 30 a week times 4 is 110. so say a car payment no more than 150, 160 a month. obviously you're going to have to go used. When I bought this car, I did have a job. One that I thought was very secure. But it wasn't and now I'm having to live off of unemployment. Now one thing, I got lucky. This car, as old as it is only had 28,000 miles on it. Unless you are bringing home over 2000 and it's recession proof I wouldn't be considering a new car. I myself am never going to have a car payment again. I'll save and then buy a used car with my savings.