How Much Car Can You Afford In 2024? (3-Step Car Loan Affordability Guide)

How much car payment can you actually afford in today's economy?
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Car affordability is getting harder when car prices keep increasing (along with everything else). With car loans getting longer, it's easier to believe you can afford a car, but how much car can you actually afford? I Always stay on the conservative side, but I've got three updated guidelines to follow for basic car affordability with today's car prices and interest rates. The guidelines are more realistic with today's average income along with recent average car rates and prices.
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Chapters:
0:00 Introduction
0:36 Car Buying Stats
2:50 3-Step Car Affordability Guide
3:00 1 - 20% Down
3:20 2 - 60 Month Term (or less)
3:58 3 - Payment 10% Gross Monthly (or less)
4:44 Car Affordability Recap
#honestfinance #carbuying #caraffordability

[@HonestFinance]

Enjoy the video! Feel free to comment below if you've got any questions, thanks :)

[@jack8356]

Great video. My car got paid off. Still live at home right now. Had some money in savings so i put all of it towards it. And trying to get at least 3/4 of school done so i can try find a job in my field of study. Then ill would move out. Right now i dont even make enough to support myself. Especially with paying for classes and books

[@thomaspowers4952]

This was a great video. Put things in perspective. Thanks!

[@mrslaharris7128]

❤❤❤❤❤ TY

[@lejoeruiz6126]

Ok so I make 14.4K a yr with zero credit. What can I get?

[@manuelseda9197]

I make $75K a year what car can I afford?

[@jerrylundegaard2592]

Make a budget. No one can answer your question. Only you can answer it. List all your fixed expenses such as rent, health insurance, mortgage, student loans, etc. Include how much you want available to spend every month, such as $400 a week. Include how much you want to save each month. Subtract all your expensed from your take home pay. What is left is what you have available for a monthly car payment and expenses. Use an online car loan calculator to determine, at your credit profile/score interest rate, how much you can spend on a vehicle which will fit within your budget.