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?"

Answer
“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.”
avatar
Eric Schad
Answered on Jun 07, 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.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free