iwishiwascool Posted November 27, 2006 Report Share Posted November 27, 2006 I am about to head to the dealership to quite possibly buy a new car - Something I said I would NEVER do. I am putting a significant amount down but I am wondering how much exactly people usually dedicate to a car payment... since I've never had one. To keep this from being a thread about income just use this equation: (Monthly Car payment / Monthly NET income ) This car would put me at rougly 7%. *equation fixed, my bad. Quote Link to comment Share on other sites More sharing options...
Hwilli1647545487 Posted November 27, 2006 Report Share Posted November 27, 2006 About 7% here as well. I would look at total debt to income though personally. Not specifically car payment to income. Quote Link to comment Share on other sites More sharing options...
Casper Posted November 27, 2006 Report Share Posted November 27, 2006 The car I'm looking at would put me at 7% as well. Quote Link to comment Share on other sites More sharing options...
Buckeye1647545503 Posted November 27, 2006 Report Share Posted November 27, 2006 What is the reason you want to go new insteed of a yera or so old ? Just wondering Oh and mine is 0% since I rather drive a pos than have that cloud over my head Quote Link to comment Share on other sites More sharing options...
Fiji ST Posted November 27, 2006 Report Share Posted November 27, 2006 When I bought my car, I kept in mind how much you could realistically pay per month as well as how much money you want to put down. Then you have to work out what the dealer is willing to do plus the interest rate. But having a general mindset on what you want to spend is a good way to start. Quote Link to comment Share on other sites More sharing options...
HotCarl Posted November 27, 2006 Report Share Posted November 27, 2006 What is the reason you want to go new insteed of a yera or so old ? Just wondering Oh and mine is 0% since I rather drive a pos than have that cloud over my head The older you go the more maintenance is needed to keep its driveability up. I've bought 2 year old cars and 15 year old cars. I'd rather buy newer by far, not having to change out alternator's in your work parking lot while its snowing and 20 degrees out is definitly worth the small extra monthly premium i have to pay for a newer car with a warranty. Quote Link to comment Share on other sites More sharing options...
Oo0martelle0oO Posted November 27, 2006 Report Share Posted November 27, 2006 I would be at 5.8% if I still had a car payment. Quote Link to comment Share on other sites More sharing options...
smokin5s Posted November 27, 2006 Report Share Posted November 27, 2006 I'm at 23% on my two cars.... with that being said, 2 more years, they are both paid in full and I will have nothing. (I was stupid with I lived with my parents and had expendable income... now I am fighting to get above water again) Quote Link to comment Share on other sites More sharing options...
Casper Posted November 27, 2006 Report Share Posted November 27, 2006 I am about to head to the dealership to quite possibly buy a new car - Something I said I would NEVER do. I am putting a significant amount down but I am wondering how much exactly people usually dedicate to a car payment... since I've never had one. To keep this from being a thread about income just use this equation: (Monthly NET income / Monthly Car payment) This car would put me at rougly 7%. Uhm, I thought something was wrong here. Yup. I was right. The formula should be car payment / monthly net income. That puts me at 14%. Quote Link to comment Share on other sites More sharing options...
Primera Posted November 27, 2006 Report Share Posted November 27, 2006 8%, I only have 4 months left til it's all paid off. Quote Link to comment Share on other sites More sharing options...
Buckeye1647545503 Posted November 27, 2006 Report Share Posted November 27, 2006 The older you go the more maintenance is needed to keep its driveability up. I've bought 2 year old cars and 15 year old cars. I'd rather buy newer by far' date=' not having to change out alternator's in your work parking lot while its snowing and 20 degrees out is definitly worth the small extra monthly premium i have to pay for a newer car with a warranty.[/quote'] even though I work on them for a living I do understand this... but how much trust do you loose in a year old car that has low miles versus the drop in retail price? Quote Link to comment Share on other sites More sharing options...
Akula Posted November 27, 2006 Report Share Posted November 27, 2006 13% on relatively short time periods. I don't want my wife and kids to have to walk down the highway due to breakdown, and if the breakdown occurs I prefer to be able to yell at someone to get it fixed. don't get me wrong, I love working on my 1970 beetle, but I expect a certain level of driveability from my daily driver. Quote Link to comment Share on other sites More sharing options...
Mr. Jones Posted November 27, 2006 Report Share Posted November 27, 2006 13% on relatively short time periods. I don't want my wife and kids to have to walk down the highway due to breakdown, and if the breakdown occurs I prefer to be able to yell at someone to get it fixed. don't get me wrong, I love working on my 1970 beetle, but I expect a certain level of driveability from my daily driver. +1 Its fine to wrench on a project or 2nd car. But your daily should not be worked on daily just to get you back and forth to work. I like being able to drive it somewhere, get a free rental car and have it taken care of. I'm never without a daily this way. Quote Link to comment Share on other sites More sharing options...
copperhead Posted November 27, 2006 Report Share Posted November 27, 2006 I'm at 17% on the payment, and want to go down. Keep in mind other things like insurance, and how much fuel you run through. Total spending on my daily driver brings me up to 36% for an average month. That's far too much of my income, in my mind, especially since I am trying to buy a house. I'd rather have an old truck and a decent car, spend less per month, and if one breaks down oh well, i've got something else to drive. Quote Link to comment Share on other sites More sharing options...
Buckeye1647545503 Posted November 27, 2006 Report Share Posted November 27, 2006 I think you guys mis understood what I ment. I just was talking about buying new as in 07's and the certian drop on those. I ment nothing else other than the brand new ones. Quote Link to comment Share on other sites More sharing options...
Guest powers Posted November 28, 2006 Report Share Posted November 28, 2006 The calculation should be based on Gross income. These would be the limits I would go 10% of your monthly gross for an automobile. 10% cc other installments 29% for housing A total of no more than 42% for all of those items combined. In this I do no include your cell phone, utilities, and other items that can be terminated at will (non contractual). When we would lend we could go up to 50 and 55% for total month debt ratios but those are the loser people that get shitty loans. A stronger borrower would be in the high 20's to mid 30's for everything. So that should give you a good idea of where you would wan to put yoruself. Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted November 28, 2006 Author Report Share Posted November 28, 2006 http://static.flickr.com/114/308171952_ac08f98d05.jpg?v=0 5%, Negotiation roxors. Quote Link to comment Share on other sites More sharing options...
Lustalbert Posted November 28, 2006 Report Share Posted November 28, 2006 3% of monthly net. Wifes car is the only ting that we are paying on. Quote Link to comment Share on other sites More sharing options...
Casper Posted November 28, 2006 Report Share Posted November 28, 2006 The calculation should be based on Gross income. These would be the limits I would go 10% of your monthly gross for an automobile. 10% cc other installments 29% for housing A total of no more than 42% for all of those items combined. In this I do no include your cell phone, utilities, and other items that can be terminated at will (non contractual). When we would lend we could go up to 50 and 55% for total month debt ratios but those are the loser people that get shitty loans. A stronger borrower would be in the high 20's to mid 30's for everything. So that should give you a good idea of where you would wan to put yoruself. What if you don't have credit cards or other installment loans? Right now I'm at 34% total. Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted November 28, 2006 Author Report Share Posted November 28, 2006 I fixed the original post to reflect the proper equation.... I am smurt. Quote Link to comment Share on other sites More sharing options...
Nitrousbird Posted November 28, 2006 Report Share Posted November 28, 2006 Of my take home pay, I'm at 14.7% for the Avalanche (which I put $0 down). Quote Link to comment Share on other sites More sharing options...
LJ Posted November 28, 2006 Report Share Posted November 28, 2006 I think you are supposed to be at no more than 15% of your take home for: car payment, insurance, gas, maintenance. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted November 28, 2006 Report Share Posted November 28, 2006 I'm at 18% with my 4 cars...yeah I'm stupid!!! I say play it smart, get a slighty used car because of how much the value drops when you drive it off the lot. Research is always key...There is no worse feeling than leaving a dealership feeling like you just bent over and took one in the anus! I like the walk away theory. If you still want the car after a nights sleep then its worth it. And that leaves the salesperson calling you at home offering you better deals to get you to come back in. Quote Link to comment Share on other sites More sharing options...
Berto Posted November 28, 2006 Report Share Posted November 28, 2006 I'm at 12% of my takehome pay. 0 downpayment. I decided to go with a new car because i don't trust other people's maintenance. I know with my new car I did the proper maintenance and break in. Also driving 36k miles a year wouldsuck in a beater when i get stranded somewhere between indianapolis and columbus. Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted November 28, 2006 Author Report Share Posted November 28, 2006 I'm at 12% of my takehome pay. 0 downpayment. I decided to go with a new car because i don't trust other people's maintenance. I know with my new car I did the proper maintenance and break in. Also driving 36k miles a year wouldsuck in a beater when i get stranded somewhere between indianapolis and columbus. Exactly why I went new. Used for 28k or New for 31k with a full 100k mile warranty. As shown in the pic above I bought an 06 Mitsu Evo 9 SE. I now own 3 freaking cars. Time to head to the corral. Quote Link to comment Share on other sites More sharing options...
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