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
“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.”
avatar
Eric Schad
Answered on May 21, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free