QuestionHello,
I have a question about buying a car. My car is twelve years old and I am bit rusty on the car purchasing. I will try and explain my question as best as I can. Please and thank you for your time! :)
I have been reading a lot of information such as tips etc. and one of the things that was mentioned was that a person should avoid telling the car salesman what monthly payment they were looking for - and instead focus on the entire car purchasing price.
But, my dilemma is that – the car payment is my main focus. It is very important to me to not go over a certain amount of money on the monthly payment. So my question is this. How do I figure out a guesstimate of the monthly payment? Would I take the amount (example: $10,000) on a 60 month loan then just divide it up? So, even if I do this, I would still have to negotiate the price plus tax and licensing etc. I don’t want to negotiate a price and go through most of the motions only to end up more than what I can or want to pay.
But, don’t get me wrong, I won’t go over what I can pay. I was lucky enough to have recently get a raise of a certain amount and that is literally all I have for a car payment. So, I either get the rate I need or I go elsewhere. And next, I have a good job history, and car payment history but unfortunately I do have some old hospital debts on my credit and that will likely hurt my score too. And I realize that I cannot be overly choosy if my credit is not perfect but my car history and job are. Seven years at my job and my car finance history is still on my credit report but will come off soon since I have had my car paid off for almost six years now.
Any answers on how to go about figuring out what car payment would be? This will be a purchase in Phx, AZ
Any help would be greatly appreciated. Thank you and have a great day!
AnswerLet's start with you"re right about avoiding telling the salesperson about your budget for monthly payments for the simple reason that the whole transaction would be about payments and not value for your bucks.
Your dilemma payments being the main focus is understandable, here is how you can ballpark figure with an average credit rating,,, simply allow $20 for every $1000. the car cost " example " if the vehicle cost $12,000 with taxes in,,, your monthly payments should be very close to $240. If vehicle cost total $9000. your payments will be close to $180. However if you have a blemished credit rating the interest rate will go way beyond these numbers.
Your seven years with same employer, yes is excellent,,, your mention of old hospital depts ? do you know for a fact your credit score is blemished ? or are you assuming this will work against you.
Let's start with the details I have provided which hopefully have given you a few thoughts,,,
Please study my website how to buy a vehicle, and any Q you may have, feel free to get back to me,,, my aim is for you to have value for your money in your driveway.
Ray http://www.usedcartips.org/
