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What is a reasonable monthly car payment?
To cut to the chase, it’s smart to spend less than 10\% of your monthly take-home pay on your car payment, so you can keep your total car costs below 15\% to 20\% of your income. That might leave you feeling you can afford only a beat-up Yugo. But there’s an interesting caveat to this rule of thumb.
What is the monthly payment on a $30000 car?
roughly $600 a month
A $30,000 car, roughly $600 a month.
Is it worth putting money down on a car?
Putting money down on a vehicle has plenty of advantages. The larger the down payment, the lower your monthly payment will be—and you’ll probably get a better interest rate, to boot. A larger down payment also helps you build equity faster and protects you and the lender against depreciation and potential loss.
Is 800 a month too much for car payment?
Experts say your total car expenses, including monthly payments, insurance, gas and maintenance, should be about 20 percent of your take-home monthly pay. Then a safe estimate for car expenses is $800 per month.
How do you calculate the monthly payment on a car?
To calculate the monthly payment on an auto loan use this. car payment formula: c = Monthly Payment. r = Monthly Interest Rate (in Decimal Form) =. (Yearly Interest Rate/100) / 12. P = Principal Amount on the Loan. N = Total # of Months for the loan ( Years on the loan x 12)
How to calculate my monthly car payment?
Figure out your budget. Estimate that 10\% can be allotted toward your car payment.
How much to budget for a monthly car payment?
So, How Much Should You Spend on a Car? No More Than 15 Percent of Your Monthly Take-Home Pay. Some experts suggest consumers whose only debt is a mortgage can allot 15 percent of their take-home pay for a Half Your Annual Salary. 36 Percent of Your Income Devoted to Debt Payment. The 20/4/10 Rule. A Trial Period of Making Payments to Yourself.
How much will my monthly car payment be?
It depends on how much income you have after your bills and expenses. But as a rule of thumb, your car payment should not exceed 15\% of your post-tax monthly pay. For example, if after taxes, you make the U.S. median income of $37,773, you could shop for a car that costs up to $472 per month.