NoSoup

Not a problem, that's what I'm here for

Alrighty, let's take a look...

Monthly income is approximately $1865.00

Current total expenses are approximately $680.00 per month. Because you didn't mention it, I'm going to assume that you are currently living at home and not paying rent.

That leaves you a net of $1185.00 per month, not including daily expenses like food, gas, clothing, etc.

I'm estimating here, but let's say you get a car financed at $24,000.00 for 48 months at 8%. That would put your payment at just about $586.00 per month.

So, let's look again -

Current monthly expenses are $680.00 per month
We'll subtract $160.00/month, with the assumption that you would sell your current vehicle, and then add $586.00. Additionally, we'll throw on an extra $100.00 per month for insurance, as you are presumably buying a newer car, are young, male, and single.

So, now you're looking at about doubling your fixed monthly expenses, up to about $1206.00 per month. That leaves you a net of $659.00 per month. Again, that doesn't include food, gas, preventative maintenence, movies, etc.

Here's the kicker, though. That would be fine, providing you want the car that badly. However - keep in mind that you're pretty much looking at this situation for the next four years or so. $659 won't get you too far once you move out on your own and have rent, electricity, water, groceries, parking, etc.

Here's what I propose...

Keep your current car for a minimum of another nine months. Take them payment that you would be looking at ($586.00) per month and apply that toward your current vehicle loan - make sure that you are comfortable with it.

Additionally, call around to some different apartments in the area that you would eventually consider moving in to, and find out what the average rent, gas and electric, and parking would cost. See if you can set that aside in your savings account in addition to making your would-be car payment. Providing you can do all of that comfortably, go ahead.

Here's the good news, though. In 9 months your current car will be paid off, allowing you to sell it outright if you would get more money for it that way rather than a trade.

Also, you should have a substantial amount stocked up in your savings account (I'm guessing at least another $5500.00) from "pretending" to pay rent.

Again, providing you were comfortable all through that process, go ahead and purchase your vehicle - except it should be much easier this time, as you'll have a much larger down payment and much lower payments if you finance.

However, if you struggle to make ends meet or lead a relatively miserable lifestyle for those nine months, be glad that you can stop it whenever you want, and you aren't stuck with it for four whole years.

In short, I agree with Cynthetiq - you're probably spending too much on a car for your income. Especially if you are considering moving out on your own before the loan is paid in full. However, the decision is obviously up to you (and the banks)

Perhaps that's too much information - I tend to get long winded at times. At any rate, I'll do my best to answer your questions just as you posed them.

The best bet to get financed is to have a lower loan to value ratio on the vehicle, so trading in your car/selling it outright and getting a smaller loan would likely be your best bet. Additionally, putting some of your savings down would also help. As the loan to value ratio decreases, typically the requirements to obtain a loan do as well, as the lender is less at risk. Another option would be to get a co-signer, just make sure that they know that they are fully responsible for the payments if you don't make them.

Keep in mind, though, that banks have a lot of experience lending money - if for whatever reason they won't give it to you, you'll probably be thanking them later.

Hope this helps, and let me know if you have any more questions!

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