How much vehicle can you afford? That’s the question you can’t ignore when shopping for a new car. Though all those options, colors and various sizes are nice, none of them will matter if you can’t make the payments. So, how much vehicle can you afford? Experts suggest your vehicle should account for no more than 20% of your take-home pay, and the down payment, interest rate and term of the loan will play a part in this calculation as well. To help you determine the right budget, use this helpful Vehicle Affordability Calculator.
Car Affordability Calculator Definitions
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This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc., an Experian company. © 2015 ConsumerInfo.com, Inc. All rights reserved.