How much should I put down on a 50k car?

Asked by: Prof. Theresia Price Jr.  |  Last update: April 3, 2024
Score: 4.7/5 (19 votes)

As a general rule, you should pay 20 percent of the price of the vehicle as a down payment. That's because vehicles lose value, or depreciate, rapidly. If you make a small down payment or no down payment, you can end up owing more on your auto loan than your car or SUV is worth.

How much should I be making to afford a 50k car?

If you wanted to stick to this rule of thumb and buy a $50,000 car, you would need a monthly take-home income of at least $7,240 if you got a car loan at a below-average rate and stretched out your payoff time for a long time. Many people will find that purchasing such an expensive car really isn't affordable.

How much should I put down on a 55k car?

A down payment between 10 to 20 percent of the vehicle price is the general recommendation. But if you can afford a larger down payment, you can save even more money on interest payments over the life of the loan. By dropping the amount financed, you save some even before you start negotiating the car price.

What credit score do you need to buy a 50k car?

To buy a $50,000 car and get favorable auto loan options, it's best to have a credit score in the prime or super prime categories. Prime borrowers are those with a credit score within the 661-780 range, while super-prime borrowers fall within the 781-850 range.

How much money do you need to put down on a 60k car?

A rule of thumb for down payments on new car loans is 20% of the purchase price, which helps you avoid owing more on the loan than the car is worth.

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34 related questions found

What is a good down payment on a 40k car?

As a general rule, you should pay 20 percent of the price of the vehicle as a down payment. That's because vehicles lose value, or depreciate, rapidly. If you make a small down payment or no down payment, you can end up owing more on your auto loan than your car or SUV is worth.

How much a month is a 25k car?

Example: A six year fixed-rate loan for a $25,000 new car, with 20% down, requires a $20,000 loan. Based on a simple interest rate of 3.4% and a loan fee of $200, this loan would have 72 monthly payments of $310.54 each and an annual percentage rate (APR) of 3.74%.

Can I afford a 45k car?

It depends on how much income you have after your bills and expenses. But as a rule of thumb, your car payment should not exceed 15% of your post-tax monthly pay. For example, if after taxes, you make the U.S. median income of $37,773, you could shop for a car that costs up to $472 per month.

Can I get a 50k loan with a 700 credit score?

You will likely need a credit score of at least 580 for a $50,000 personal loan, along with enough income to afford the monthly payments. Other common loan requirements include being at least 18 years old, having a valid bank account, and being a U.S. citizen, permanent resident, or visa holder.

Do you need collateral for a 50k loan?

Collateral. A personal loan is usually “unsecured,” which means that it doesn't require collateral, such as your home, car, or savings account. If you have bad credit, however, the lender may ask you to provide collateral for a large loan.

Is it smart to put 50% down on a car?

Not only does this show lenders how dedicated and serious you are to pay back the loan, investing some of your own cash into this purchase motivates success. You'll really see changes for the financial better in your car loan when you make a really large down payment, about 50%.

What is the 20 3 8 rule?

What is the 20/3/8 rule for financing a car? — The 20/3/8 rule suggests putting 20% down, financing for no more than 3 years, and ensuring that monthly payments do not exceed 8% of monthly gross income.

What is the 20 4 10 rule?

To apply this rule of thumb, budget for the following: A 20% down payment. Repayment terms of four years or less. Spending less than 10% of your monthly income on transportation costs.

Who can afford a 60k car?

To afford this, you would need to have a gross income of at least $53,666.67 per year. Unless you use a different financing method like a Savings Club. You would get a lower rate for the same length of the term and be able to afford the vehicle more comfortably.

What car can I afford with 80k salary?

you comfortably afford under an 80 000 salary. a volkswagen golf gti audi a3 a toyota. avalon the kia stinger and the cadillac ct4.

How much to afford a $40 K car?

For net monthly income, you're gonna need to make four thousand. six hundred and sixty seven dollars per month. So before taxes and other deductions, at a minimum. you'll need to make 70 thousand dollars per year. to afford a 40 thousand dollar car.

How much would a $50 000 loan cost per month?

Calculating the monthly cost for a $50,000 loan at an interest rate of 8.75%, which is the average rate for a 10-year fixed home equity loan as of September 25, 2023, the monthly payment would be $626.63. And because the rate is fixed, this monthly payment would stay the same throughout the life of the loan.

How big of a loan can I get with a 720 credit score?

You can borrow $50,000 - $100,000+ with a 720 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

How much is a 40k car payment for 5 years?

If you are offered a 2% interest rate for three years (or 36 months), 3% for four years (48 months), 4% for five years (60 months), and 5% for six years (72 months), your monthly payments for a $40,000 loan will be as follows: Three years – $1,146. Four years – $885. Five years – $737.

What is a good car payment?

A good rule of thumb is to spend no more than 10% of your take-home pay on a car loan payment when possible.

What is the average payment on a 40k vehicle?

For $40,000 loans, monthly payments averagely range between $900 and $1,000, depending on the interest rate and loan term.

Is 600 dollars a month a lot for a car?

An affordable car payment would be one that doesn't exceed $600 a month, based on the rule of thumb that your car payment shouldn't be more than 15% of your take-home pay. If you take out a 60-month car loan at 8% APR, you should aim to take out a car loan of less than $30,000.

What is a good down payment on a 30k car?

Consider putting at least $6,000 down on a $30,000 car if you're buying it new or at least $3,000 if you're buying it used. This follows the guidelines of a 20% down payment for a new car or a 10% down payment for a used car.

Will car loan rates go down in 2024?

McBride shares that while the high-rate environment will persist, rates will ease for most borrowers in 2024. Increased competition between lenders may help drivers secure a good rate. However, he warns, “don't expect auto loan rates to fall enough to offset the increases we've seen over the past couple of years.”