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Should I buy a Mazda CX-5 with a loan that's more than my annual salary?
"I want to buy a Mazda CX-5 that costs $25,000, but I only make $24,000 a year.
Is it a good move to purchase/finance a car that's more than my annual salary?"
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“You could buy this car, but you might find it will become a financial burden every month when you factor in gas, maintenance, and full-coverage
car insurance
(that you’ll be required to have for your loan).For example, if you get a 60-month loan at 5%, you’ll pay $472 a month. Add in gas ($50) and car insurance ($200), and you’re looking at about $722 per month. Compare this to your $2,000 month salary. Can you really afford it? Maybe not.
Instead of taking out this loan, either pay cash for a car or find one that’s less expensive. You’ll thank yourself later for doing so.”
View full answer
- Gregory R.
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