How much should I spend on a car?

[Pastore]

After figuring out my budget, including all monthly expenses, I have $425 left over for basically whatever (my current aging car is paid off). I am wondering how much of a monthly payment I should make out of that on a car. I haven't really decided what I want, but I'm trying to figure out my budget before I take my info to the bank so I can get some quotes. Say you have $425 extra per month, how much would you spend on a car per month? I was looking at staying under $225 so I'd have a cushin of $200 each month.

 

[Zach]

I'd say you should try to stay under $225.

 

[fbrdphreak]

Is this with a nice chunk of change going into savings (not including a 401K or anything)? Then I'd save a nice chunk of change up with that extra money each money, make a nice downpayment on a reasonable car, and have low payments & hopefully low interest.

 

[thomsbrain]

you are putting more than that into savings already... right?

if that's all you have left over after your monthly expenses, you definetely do not need car payments hanging over your head. put it all in savings!

 

[Pastore]

lol guys guys... I don't need a lesson in finance. My investments are taken out already. This is purely extra money. I already have $4k for a down payment. So is $225 a smart number to stay under?

 

[chickadee]

im going to have to agree with most and say try and keep it around the $225-$250 mark. Sometime extra money each month is helpful because you never know what expenses might come up, or perhaps it'll give you a chance to splurge every so often and buy yourself something nice.

Ive never financed a car so I dont know if this is possible, but maybe if you have a bit left over each month, overpay each month what you owe on your car and get paying it off done sooner than you would've thought?

 

[Zach]

Chickadee finishes with a good point. if you can't pay cash you could look into if you could tolerate buying a car for $150 or $200 and put extra towards it when you don't exhaust the remaining spending cash. I guess your idea for $225 could have already factored that in though.

 

[nakedfrog]

If I were you, I'd spend $4k.

 

[Pastore]

Originally posted by: nakedfrog
If I were you, I'd spend $4k.

And if I had no down payment?

 

[Christobevii3]

Save up while using the car you have now. Drive it till it implodes. Then buy a car, it makes more sense economically.

 

[Pastore]

Guys. Why does everyone seem to think they know what is best for me? I'm asking how much with this budget is smart. My current car IS falling apart if you must know.

 

[Zach]

Originally posted by: Pastore
Why does everyone seem to think they know what is best for me?

You are asking for thier opinion of what it would be best to do given a vague idea of financial status and car needs.

 

[Gibson486]

you can live off $200 a month?

 

[mrchan]

Well, it's $425 extra so............... up to $425

If you want to only spend $225, then it's not $425 extra, heh.

I'd probably keep it at or under $300.

 

[Tiamat]

Do you have to subtract monthly costs of gasoline ~$125 and car insurance ~$100?

Or is that already part of your calculated expenses. It would suck to pay 300$ per month in car payments then struggle to get gas in the car...

 

[Pastore]

Oh for God sakes... The $425 is EXTRA... ALL OTHER EXPENSES ARE ACCOUNTED FOR... WHAT IS SO HARD TO UNDERSTAND ABOUT THIS

 

[Baked]

You're looking at a lease for $225 a month, excluding tax and insurance.

 

[Koing]

Originally posted by: Pastore
Oh for God sakes... The $425 is EXTRA... ALL OTHER EXPENSES ARE ACCOUNTED FOR... WHAT IS SO HARD TO UNDERSTAND ABOUT THIS

Chill dude.

The answer you want is to dump the whole $425 extra in to the car. It is EXTRA so you don't need it. Just dump it all in the car...

Koing

 

[b0mbrman]

How do your needs change when your budget changes?

The answer is to start with deciding which features you need (4 doors? Big trunk? 4wd?) then buy the lowest cost car your ego will allow

 

[randay]

buy a ferrari.

 

[supastar1568]

Originally posted by: b0mbrman
How do your needs change when your budget changes?

The answer is to start with deciding which features you need (4 doors? Big trunk? 4wd?) then buy the lowest cost car your ego will allow

Do you have a big trunk?, cause i wanna put my bike in it

 

[mattocs]

Get yourself a Hyundai Accent. Great on gas and very dependable.