Realistically, if you have decent credit, it’s not unheard of to make a $500 down payment. If you’re dealing with bad credit, however, you should expect to put down more. At the same time, only a lender can truly tell you how big or small of a down payment you’ll need.

Can I afford a $300 car payment?

NerdWallet recommends spending no more than 10% of your take-home pay on your monthly auto loan payment. So if your after-tax pay each month is $3,000, you could afford a $300 car payment. NerdWallet recommends maximum loan terms of 36 months for buying a used car and 60 months for new cars.

How much can I afford to pay for a car?

The above car affordability calculator uses a conservative but solid assumption about how much car you can afford. Whether you’re paying cash or financing, the purchase price of your car should be no more than 35% of your annual income. If you’re financing a car, the total monthly amount you spend on transportation—your car payment, gas.

How to find out how much car you can afford with NerdWallet?

NerdWallet’s car affordability calculator starts with the monthly payment you choose and shows you what loan amount you can afford, and how the APR and loan term change the total loan amount. To use NerdWallet’s car affordability calculator, input the monthly car payment you’ve decided you can afford and the length of loan you want.

Can you buy a car with a down payment?

The total loan amount you can afford isn’t necessarily the price of the car you can afford. If you’re making a down payment or trading in your old car, you’ll be able to buy a higher-priced car, or borrow less money. (Use our auto loan calculator to see how your down payment or trade-in credit affects your monthly payment and loan amount.)

Where can I find a car I can afford?

Finding a car you can afford Many automotive sites, such as Kelley Blue Book, Edmunds and AutoTrader, have car finder search tools to show you different models listed by price. But remember to set the bar low. When searching for cars, set your maximum price below the total loan amount you think you can afford.