If I make $1,000 a month, will I get approved for a $30,000 car loan on a Mitsubishi Outlander?

I make $1,000 a month, and I have my eye on a new Mitsubishi Outlander. Will I get approved for the $30,000 balance if I put down $5,000 toward a loan?

Answer provided by
Eric Schad
Answered on May 05, 2021
“You probably won’t get approved, but even if you do, it might be quite a strain on your finances.
Even if you take out a loan at five percent for 72 months on the $30,000 (without factoring in sales tax and other fees), you’re looking at about $485 a month.
All financed cars also need full-coverage car insurance, so that might cost anywhere from $200 to $500 a month, depending on your age, zip code, and other factors.
Can you live off a few hundred dollars a month or less? Only you can answer that.
The best advice is to take that $5,000 and buy a car with cash. Then you have the set of wheels you need without the financial stress.”

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