Can I Afford A 2008 Honda Accord?

[Ashley1980]

Hi All,

I'm wanting to purchase a 2008 Accord Coupe at the end of this year.  I would like to know if I can afford this car based on the knowledge of you credit-savvy gurus.  I gross approx. 48k a year and I am interested in a $30k car.  I plan to put down 3k and finance around 27k.  My current debt is a $727 mortgage, a personal loan of 4k, cc debt of 2500, 10k in deferred student loans (which will continue to be deferred until i graduate in 2011), and a current vehicle loan with a balance of 4k.  Before the purchase i will have paid off my vehicle loan and my cc debt of 2,500.  Remaining will be the personal loan which i will probably have paid off by March of next year and of course the mortgage and student loans.  I feel that I'm fine with this layout.  Do you all think I can afford the car that i want?

[Anonymous]

I am sorry to say that you can not afford this car......Your income is not high enough to support this much car....Not to mention you already have existing debt....

You shouldn't finance a car for more than 4 years.....So you are looking at a car payment of at least $600 per month........

Good Luck!

[Anonymous]

Can you afford it?

That's a loaded question so to speak. Technically, most people can afford it, with the numbers you provided...however, a greater question needs to be asked: Are there other areas that you could better spend your money (e.g. current student loans), if you really don't need a new car...but I won't get into that --- it is something we all struggle with.

First, I think if you negotiate you can get the car for far less than 30K, through my negotiations, I was able to achieve the following prices in the DC Metro area:

-$25K for fully loaded I4 Accord Sedan EX-L with NAV
-$26.3K for fully loaded v6 Accord Sedan EX-L with NAV
-$22K for LX (pretty loaded) I4 Sedan

All above prices are including everything but tax, title, and license.

In terms of affording it in terms of a "monthly payment", it also depends on your current car's trade in value, and what your out the door financing total is. Financing a pure $27K, with an average APR of 6% is about $522 a month for 60 months. Does that fit your monthly budget? If so, you can afford it; if not, reconsider...

Good luck with your decision and keep us posted with what you decide!

[Anonymous]

To figure out if you can afford the monthly payment pending your trade-in-value determination, go here and use this auto loan calculator:

Link
Again, consider my intro statement to my last message very seriously re: monetary priorities.

Good luck!

(I edited your post so the link wasn't so crazy long --peas)

Message Edited by WhirledPeasPlease on 08-05-2008 12:28 AM

[Anonymous]

Hi PJ

How did you negotiate your price of the cars? Did you go in to the dealership or did you call over the phone? I will be buying a car in the next 7 days and will have financing in hand a would like to negotiate the price to get the most for my money.

Thanks

[Anonymous]

---

@Anonymous wrote:

Hi PJ

How did you negotiate your price of the cars? Did you go in to the dealership or did you call over the phone? I will be buying a car in the next 7 days and will have financing in hand a would like to negotiate the price to get the most for my money.

Thanks

---

What kind-of car are you looking at? Depending on the brand and car I could provide some pointers. I would also recommend you print out the "TRUE MARKET VALUE" from Edmunds.com.

[Anonymous]

2008 Honda Accord. I went to a dealership about a month ago to look and I saw an EX that I like it was a little over 27000...the only thing that I really want is the leather seats, splash guards and sunroof/moonroof don't have to have the Navi system.  

[Anonymous]

Yuo can prob. bring an EX-L with no NAV down to $23.5 with some negotiation. Good luck.

Message Edited by Pj1369 on 08-05-2008 07:11 AM

[Schoolbuskid]

According to Suze Orman you wouldnt be able to afford especially havin the credit card debt, but like PJ said if you believe you can afford 522 a month then go for it!

[Ashley1980]

Thanks Mel for your input.  How much would you personally say I'd have to make to afford this vehicle?