My Affordable Car
By: Mitch Fisher
My salary: $40,000
Budget: Yearly Monthly
Housing $14,000 $1,166.67
Taxes $10,000 $833.33
Transportation(Car) $4,000 $333.33
Transportation(other) $2,000 $166.67
Food $6,000 $500
Savings $2,000 $166.67
Medical $1,200 $100
Miscellaneous $800 $66.67
What can I afford?
3 Year: PV=333.33(1-(1+.0357/12)^-(12*3)/(.0375/12)=$11,332.78
4 Year: PV=333.33(1-(1+.0357/12)^-(12*4)/(.0375/12)=$14,836.19
5 Year: PV=333.33(1-(1+.0357/12)^-(12*5)/(.0375/12)=$18,210.86
Carmax.com
3 Year: 17,998=R(1-(1+.0375/12)^-(12*3)/(.0375/12)
R=$529.37
529.37*36=$19,057.44
$17,998.00
4 Year: 17,998=R(1-(1+.0375/12)^-(12*4)/(.0375/12)
R=$404.37
404.37*48=$19,409.64
83,000 miles
5 Year: 17,998=R(1-(1+.0375/12)^-(12*5)/(.0375/12)
R=$329.43
329.43*60=$19,766.04
My Decision
I'm going to choose the 5 year plan. I only have $333.33 to spend per month on a car so it would be the most affordable for my salary. The total payment isn't really that much higher than the other options either.