"Do you think I can comfortably afford to finance a $40,000 Charger? "

"I have been making over $80,000 annually for over a year now. I’ve almost eliminated my student loan debt and my monthly expenses are less than $1,000 per month.

I really have my heart set on a new Dodge Charger. The MSRP is about $40,000. Can I get a loan, and if so, how much should I expect to put down?

"

Answer
“On a $40,000 car, you should expect to put down at least $8,000. Depending on your interest rate and the length of the loan, your monthly payments should be $500 to $1,000 per month, and insurance is going to cost around $200 per month.
Lenders will want to see that the monthly insurance and car payments combined equal less than 20% of your monthly income. So whether or not you can afford the Charger depends on how much your monthly payments come out to be. “
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Johnny Puckett
Answered on May 11, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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