Can I get a car loan for a $7,000 Lexus if I only work part-time?

"I want to buy a $7,000 Lexus. I'm going to sell my current car for $4,000, so I'll need to finance the remaining $3,000.

I'm 20 years old and I have a part-time job making $800 a month. Can I still get a loan for this amount?"

Answer provided by
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Eric Schad
Answered on May 21, 2021
“If you have a decent credit score, getting a loan for $3,000 shouldn’t be a problem.
The real question is whether you should take out a loan. Think about all of the costs that go into this loan. Here’s an example:
  • Car note = $90 per month ($3,000 at five percent for 36 months)
  • Taxes, fees, and registration = $700
  • Car insurance = $300 a month, as you’ll need full coverage
These are just rough estimates. Can you afford to pay for the car note and car insurance, as well as the one-time taxes and title and registration fees? At this rate, half of your pre-tax income will be gone.
This is a decision only you can make, but you might want to think about getting another job or choosing a more affordable vehicle than a Lexus.”
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