How Much Car Can I Afford Calculator
When deciding how much to spend on a car, you’ll need to see what car you can afford, based on your income and your expenses. In general, you should not spend more than 20% of your monthly income after taxes on a new car.
• Annual Income: $40,000
• After Tax Monthly Salary: $2,500
• Affordable Car Payment: $500
The down payment, interest rate, and term of your loan will also determine how much you can afford to buy. You should expect the term on the loan you qualify for to change based on your credit score. For example, a high credit score could fetch a term of 3-5%. A lower credit score could fetch a rate of 10-15%.
Use this calculator to help determine how much you might be able to spend on an automobile.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc., an Experian company. © 2014 ConsumerInfo.com, Inc. All rights reserved.