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
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.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
How do I choose the right beater when car shopping?
"I obviously want to save money by buying a beater, but I don’t want to be stuck with a hunk of junk, either. How do I pick the right car? "
Apr 14, 2021
Do I need medical payments coverage on my car insurance in Ohio?
I live in Ohio and have healthcare coverage. Am I required to have medical payments coverage on my car insurance? What does it cover if I were to get it?
Apr 20, 2021