 Can I afford this car?
|
 Dear
Terry,
My monthly net income is $2,000 and I pay out about $1,000 in rent and bills. I can make a down payment of $3,000 to $7,000, depending on the car I get. Should I finance a $30,000 car or save for a house/condo down payment? Please help with any suggestions.
-- Blanca
 Dear
Blanca,
As a dipped in motor oil gear-head, I am loathe to suggest to anyone
that he or she not buy a new car, but that's what I suggest for
you. First off, your monthly income won't support payments on a
$30,000 car, even if you put $7,000 down. The monthly payment would
be more than $450 per month for five years.
Also, insurance would likely add at least $100 a month
to that. Given what you've said about your monthly expenses now, I don't see how
you could afford food or other necessities. Also, you will be better off in the
long run using your money to by your first home, where you can begin to build
some equity and look forward to the day when your financial situation improves
to the point where you can afford that $30,000 car.
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