Car Affordability Calculator
Calculate how much car you can afford based on your monthly budget, down payment, trade-in value, interest rate, and loan term.
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How Much Car Can You Afford?
Financial experts recommend spending no more than 10-15% of your monthly take-home pay on car payments. The 20/4/10 rule suggests: 20% down payment, 4-year (or shorter) loan term, and total transportation costs under 10% of gross income.
True Cost of Car Ownership
The purchase price is just the beginning. Factor in insurance ($100-300/month), fuel ($100-250/month), maintenance ($50-100/month), registration, and depreciation. A $30,000 car typically costs $700-1,000/month in total ownership costs.
New vs Used Cars
New cars depreciate 20-30% in the first year alone. A 2-3 year old certified pre-owned vehicle offers significant savings while still having warranty coverage and modern safety features. Interest rates on used cars are typically 1-2% higher than new.