lunarsis

I am looking to see what the lowest monthly payments people are making. I am looking into getting one in about three to four months. The only bills I pay are my cell phone bill and half of my insurance. I make about 1000 a month, of which 260 dollars of it is used and the rest just sits there. I have a co signer with extremely, and I mean extremely good, credit. If end up trading in it will be a 99 Honda Civic EX, all the options, in perfect condition, with about 65000 miles on it when the time comes. Down payment probably around 3-4k as well. What are lowest payments you've heard of and and also do you think I can swing it?
God I want an 8! Thanks!

winter

Um, nothing a month?

Save your money, buy a beater, spend it when you see a car you really want.

gusmahler

You can find on-line loan calculators all over the web. Here's one from Capital One. Assuming you get a loan for $23,000 (invoice + taxes for car - down payment), the payment on a 5 year loan is about $427 per month.

That said, if you make $12k per year, you shouldn't be buying a car.

murix

Before you spend what little hard earned money on this car, consider the other costs. Can you afford to pay for petrol in a car that averages around 18mpg? I imagine this would just about double what you are spending at the pump right now. When the tires wear out, which are soft and will wear out quickly, can you afford the $600+ it will cost for new tires? Is insurance going to break the bank? If you had a $400 car payment, $260 in other bills, and a $150 insurance payment, (these numbers are being much nicer than it will probably really be) you would have less than $200 a month left for things like petrol, going out, and whatever else you spend your money on. Would you really want to do that to yourself?

Feras

iTrader: (1)

the number i heard thrown around is to not spend more than 20% of your monthly income on a car payment, and i think its going to be hard to get this payment below 200, im talking like putting a downpayment down of over 50%. with your numbers you're probably going to have a payment of ~400 a month if you drive 1000 miles a month (a good average) you'll spend about 100-125 dollars on gas depending on where you are, half insurance is going to be atleast 50-75 dollars a month, you'll have to buy winter tires and the current tires will only last ~10000miles so space that over 12 months and that'll be anywhere from 75-100/month. so right there thats about 600 to 700 in monthly operating costs. If you want to spend that much, by all means...putting numbers into perspective sux, i know, just save up your money and in a few years it'll be easier to get one.

gusmahler

The numbers that mortage companies use is typically 28/36. They will not lend you money to buy a house if the monthly payment is more than 28% of your gross monthly income and your total debt (including housing) is more than 36% of your gross monthly income.

Spending 40+% of your monthly income on a car payment, not including, gas and insurance, is stretching things. That said, he probably lives at home so if his circumstances allow him to buy a car, than more power to him. But he may regret his decision 4.5 years from now when he is still making those monthly payments and wants to move out.