Overhaulin'

How can you calculate how much you can afford to reasonably pay for a car?

Would like to gauge how much i should pay monthly on lease and insurance. It helps that i can deduct my car payments through work. But trying to ascertain whether it would be smart for me to buy the car i want vs. what i just need

Public Comments

1. Truth is, a lease is like renting a car. Buying is always better if you plan to have the car at least 5 years, depending on the model. Buying, at least you own it, with no mileage restrictions, and it still has value.So to pay for the car you want may not make good financial sense. First, make sure you pay yourself by investing some dollars each month for your future. From what's left, find something practical. Renting a car is money gone forever. If you start with a 330i, you'll never want to drive a Civic down the road. Start with the Civic. Even better would be to buy a two or three year-old Civic so you don't pay for the depreciation on it. And while you can deduct payments through work now, nothing is guaranteed forever. In summary, for now, purchase only what you need. You can always trade up later.
2. Well, my personal opinion (which is really all you ever get on Answers) is that if you don't have cash in the bank to buy a car outright, you can't afford it. I hate debt. That said, I'd also advise you to get only what you need. A car will go down in value as soon as you drive it off the lot. The less you pay for it, the less you'll lose overall. But if you're the type of person (like my cousin) who would rather have a nice car than a nice bank account... go for the Lexus, man!
3. there was a young man on answers this week who asked "i just signed a truck note for $599.00 a month for 72 months at 9.5 % did i get a good deal" my first thought was he will be back in six months saying he was 2 months behind on payments can they take the truck - or in 12 months saying they have taken the truck and he is in debt to his ears and how does he file bankruptcy!!! one of my favorite saying is you have to ask the price you can afford it --- with all that said i have to agree with the others two and say == just for now get trans portion -- something used cheap and will not eat you up on insurance -- take the money for the car payment you won't have to make and put it away and if you do this over a period of say 10 years you will always have a cash cow where by you can pay cash for all of your future cars!!! i have brought 5 new cars since 1972 and paid cash each time -- yes i still have the 1992 pickup and also own a 2002 ford suv -- but i also have the necessary cds when the need comes to procure a new set of wheels!!!