Looking at a new or used car and wondering how much your monthly car payment would be? While a low-interest rate and attractive offer may seem like a no brainer, it’s important to make sure that the monthly payment is something that you can afford for the duration of the payment plan and that you’ll have enough left over for all of the extras that come with owning a car.
How Much Can You Realistically Afford?As a general rule, a car payment should never exceed 10% of your total income (after taxes). Your monthly payment will depend on how much you can put down at the time of purchase, along with the trade-in value of your old vehicle (if applicable). Don’t forget to add related auto expenses into your budgets, such as licensing, gas, repairs, and general maintenance.
Before signing up for an auto loan with TDECU, take a look at your overall financial situation. What is your income versus the current debts owed? Are you up to date on student loan payments and credit cards? Looking at your finances from a realistic point of view will help determine the monthly payment and total car cost that you can afford.
Other Auto Loan Payment Considerations:
- How much cash will you put down on a new or used car?
- Are you providing a trade-in at the time of the auto purchase?
- How much are the other related expenses (gas, insurance, repairs, etc.)?
Let’s calculate your monthly auto loan payment!
Calculate your monthly car payments with the TDECU Auto Loan Payment calculator.
Our financial calculators are provided as a free service to our members. The information supplied by these calculators is from various sources based on calculations we believe to be reliable (but are not guaranteed, explicit or implied) regarding their accuracy or applicability to your specific circumstances. All examples are hypothetical and are for illustrative purposes, and are not intended to provide investment advice. TDECU does not accept any liability for loss or damage whatsoever, which may be attributable to the reliance on and use of the calculators. Use of any calculator constitutes acceptance of the terms of this agreement. TDECU recommends you to find a qualified professional for advice with regard to your personal finance issues.