Question
What Size auto loan can I get with a $1600 monthly income?
Credit score is 700. I live at home with parents and total bills come to around $1000/month. This includes my current car i am financing which costs me $300/month and $220/month for insurance. Curious as to how much I can be approved for to buy a New car. I am 22 and have never missed payments.
1 month ago - 3 answers
Best Answer
Chosen by Asker
Auto finance is what I do for a living and at that income you will not qualify for anymore payment then you already have. Auto loans are based on 10 different things the most important being payment to income ratio which no lender will exceed 20% and they will factor in $300.00 for rent no matter where you live since you might move and another $100.00 for insurance.
Source(s)
Finance Manager for a car dealer for over 9-years.
by SPIFIMAN1
1 month ago
Asker's Rating: 
Other Answers
Don't buy a new car. Sell the one your driving now, save up and pay cash on a used car in a few months. This will give time for all the people that recently bought cars they couldn't afford during cash for clunkers to start defaulting on their loans and there should be a lot of used cars for good prices available then. Good luck.
by Don J- 1 month ago
I doubt anyone will loan you more $ for a car loan as you already have one outstanding, maybe if your parents co-sign.
by Lucy Lu- 1 month ago