How much do I need to make a month to get a car loan?

I want to get a car loan, but I only make $2,000 a month. However, I don't have any other bills other than a $50 phone bill. Is this enough to get a car loan?

Answer
You’re smart to be looking at your expenses before applying for a loan. With no bills (including rent or other debt), many lenders will approve you for a car loan if you make as little as $1,500 a month before taxes, but it’s all dependent on your credit and how expensive the car is that you want.
With $2,000 in pre-tax earnings each month, you could realistically purchase a car worth about $25,000, depending on the interest rate, your credit score, and the length of the loan. Remember that you can always extend the loan to 84 months for lower monthly payments, but you’ll pay far more in interest in the process. Make a budget and stick to it so you don’t overextend yourself financially.
If you get a loan, the lender will also mandate full coverage car insurance. Not only should you budget for this, but you also should shop around on the Jerry app. With the Jerry app, you can compare rates from top insurers so you’re always getting the best rate for your car insurance needs. The average Jerry user saves $879 a year.
Eric Schad
Answered on Oct 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.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store