We know why a lease can be tempting - you get a brand new car for a lower monthly payment than a car loan. Now, let’s talk about buying versus leasing. Since we stayed within budget and put 20% down, we’re ~$80 below our maximum recommended payment - a good place to be. Punch in those numbers and scroll to the bottom, where you’ll see an all-important number: Maximum recommended monthly payment. You don’t have a trade-in, and you choose a 48-month loan at 4%. Your budget is 35% or $14,000, and you plan to make a 20% down payment of $2,800. How to use the Money Under 30 Car Affordability Calculator You can tinker with the Money Under 30 Car Affordability Calculator to get your exact numbers: “I love cars and driving, and want my whip to be as fun/luxurious as possible within budget.” “I’d like some creature comforts - maybe a good sound system and heated seats.” “I just need something reliable to get me to work. Folks who just want something to ferry them to work will be perfectly happy spending way less, while anyone who grew up watching Top Gear will likely want to spend closer to the limit. Not everyone should spend over a third of their income on a car. Make $60,000, and the car price should fall below $21,000. That means if you make $36,000 a year, the car price shouldn’t exceed $12,600. Whether you’re paying cash, leasing, or financing a car, your upper spending limit really shouldn’t be a penny more than 35% of your gross annual income. Here’s how much car you can afford Follow the 35% rule 5 tips for getting the best deal possible on a car.Here’s why your budget is lower than you were hoping.Applying for a Loan? Use our Loan Payoff Calculator to See How Much You Can Afford to Borrow.Auto Loan Interest Calculator: Monthly Payment & Total Cost.Free monthly budget spreadsheet for Excel & PDF.How To Pay Medical Bills You Can’t Afford.Best Car Insurance For College Students.Should You Get Home Contents Insurance?.How Much Should You Contribute To Your 401(K).How Much Do You Need To Have Saved For Retirement.The Beginner’s Guide To Saving For Retirement.How To File A FAFSA As An Independent Student.How to refinance your car loan in 7 steps.Best Personal Loans For Excellent Credit.Understanding Overdraft Protection and Fees.Best high-yield savings accounts compared.
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