[vornon kolts]

Im just curious what people pay per month. I have done the math and think I know the range, but for what people are paying they must be paying around $400 per month, and to me thats quite a bit of money.
I guess this is kind of a dumb question that I pretty much already know the answer to, but I would like to know what people think is acceptable.

Also, is there some magic percentage of what you make that you should consider when figuring out how much you want to pay per month?

Thanks.

 

[carman63]

My last car, my payment was about $450 a month. Financed a bit over $22K, no money down, for 5 years. Traded it in on the Element.

The E has no monthly bank note. Paid cash

I think banks look at your debt/income ratio, and figure you shouldn't have more than 40-50% total. But that can't be all banks, as I know of a few folks making les than me, getting loans for $35K cars. Depending on your financial situation, bills, etc 25-35% of your monthly net income might be the 'comfort zone' for a car payment. Don't forget you need to figure in insurance and gas, and budget maintenance costs in as well.

$430 sounds like the ball park amount for a monthly payment on a EX AWD auto, at sticker, plus tags, tax, etc. That's for a great finance rate, no money down, 60-month payment plan.

Hope this helps!

 

[firetruck41]

Paying ~$420 month, didn't put any money down.

FWIW don't negotiate using monthly payments, they can make your payments as low or as high as they/you want, you need to negotiate SALE PRICE, or you will end up being upside down with low payments, ie. low payments that will take 6-7 yrs to payoff.

 

[switters]

paying $355 2wd ex, nothing down. 60 mos.
i agree with firetruck41. working around monthly payments only can cause significant trouble down the line. of course, if your strong intention is to keep the car for many many years, then, it's arguable, that the length of time doesn't matter. but i would limit financing time to 60 mos and negotiate the selling price.
i would recommend figuring out ahead of time what combination of selling price, interest rate and length of financing will accomplish your payment limit. there are many good payment calculators you can find on the internet.

good luck.
peace

 

[GreenMeanie]

Nothing annoys me more then when a sales person says "how much do you want to pay each month". When I am asked that, I always reply "I want to keep it under $1000". At that point, there faces light up and a big smiles appears. I then say, "but I only want a one year note". Then the look of confusion comes out. You can see the wheels turning as they try desperately to figure out how much that is. Usually after that, they never mention monthly payments again.

Personally, I always do 48 month (or less) terms. This way you are never really that much upside down. On the E, I went 60 months simply because the rate was exactly the same and in Texas, loans are simple interest. Basically what that means is that if I paid the 48 month payment, it will cost almost exactly the same as if I choose the 48 month option.

 

[BarryG]

I put $2k down and am paying $309/mo for my EX 2WD Element for 72mos at 4.75% That's including about $600 negative equity in my trade. They say your payment shouldn't exceed 20% of your gross income but I think that's a pretty generous estimate. I like to keep it a bit lower. But when you put little to nothing down and finance for a long period of time, it's a good idea to keep the car for a long time. Otherwise, like the previous poster said, you'll tend to be more upside down if you do a trade. I'm a cheapskate and could probably afford more of a payment but wanted to stay right around $300/mo.

 

[Sheniferous]

I paid $8,000 down... paying 2.9% over 48 months... so it's $320.31 a month for me.

 

[psm0110]

[quote:572d5f6eef="vornon kolts"]of what you make that you should consider when figuring out how much you want to pay per month?[/quote:572d5f6eef]

Short Answer: No. Everyone's finances differ - work out a budget and see what you're comfortable with. If I hadn't done a budget first, I'd be bankrupt and driving a Touareg.

 

[vornon kolts]

I appreciate the input.

Heres another question... Do you think it would be a good idea to do a longer payment to make the base payment lower (and give yourself some breathing room), but then pay more every month to get ahead?


My hope is that I can get the only dealer in town to give me a good deal. So far I have had no luck, but I will try again. Unfortunately thier dedicated salespeople didn't call me when they had a killer deal on the model I am looking for (AWD DX Manual). $1695. Oh well. They have an EX right now that is certainly nice but on the edge of when I can justify affording.

 

[boxonw]

Cars is the necessary evil...

Vornon,

Buying an automobile is never an investment, and always a rule of thumb never go beyond what you could afford.

To answer your question: it would make sense to financed it for 60-72months if the intrest rate is low, like 1%-3%, you may need money for other expense like child care or medications. Sit down and go over the number with your spouse, mortgage, insurance (auto, home, life ins. and unexpected bills). This should give you a good picture what you can and can't affort.

I know how people works, we like to justify, is human nature to justify to get the things we wants. And that usually a pit fall in many situations, we can't predict what tomorrow may bring, we have expected the unexpected.

I hoped this help settle your mind.

In my case, I purchase the E for 21G out the door. I downed 10G and financed the rest for 60 months at 2.9% thru our credit union. I believed, I could pay the E off in the next 2yrs, maybe sooner.

It pays to patience, those sale people need you more than you need them!
Since it is August now, they starting push 03's model year for clearance you may get a better deal yet.

Take care and good luck to you,

 

[toekneejay]

I'm getting my 2WD EX out the door at 20G, paying 10% down, payments are about $305/mnth for 72 monts at 6.8% through my credit union...

not shabby at all...


waiting to hear on the loan as I type this... if all goes well, I may pick it up tomorrow, Saturday latest!!!!


needless to say I'm very excited right now!