What is the minimum amount of income you need to get a car loan?

I currently make $400 per week, but I have no other expenses because I live at home. I want to finance a car, but I have no idea what lenders require in terms of income. How much do I need to make to get a car loan?

Answer
Getting a new car is an exciting adventure! The good news is that $400 per week will probably be enough income to secure a car loan, provided you also have:
  • Good credit or a cosigner with good credit
  • A debt-to-income ratio below 43%, meaning that all of your bills are less than 43% of your total income each month
  • Proof of income
Every lender has different requirements for how much money you need to make, but a general rule is about $1,500 per month. Shop around with lenders to find one willing to approve you, as well as to discover the best interest rate possible.
Remember to purchase a car that’s also in your budget so you aren’t struggling to make payments. This should factor in car insurance payments, as lenders require full coverage on all car loans.
Just as you would with car loans, shop around for car insurance to get the best rate. The Jerry app makes this easier than ever—we’ll get you customized quotes from top providers in seconds so that all you need to do is pick the one that works best for you!
Best of luck with the loan, and enjoy your new ride!
Eric Schad
Answered on Oct 25, 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.
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