2015 BMW 228i Coupe
I have been given a salary of $120,000. I have chosen to purchase a 2015 BMW 228i Coupe using a 5 year loan.
Based off of monthly spending percentages, I can afford to pay $1000 per month as a car payment. For my purchase of the BMW, I will make a monthly payment of $796.72, which is under my monthly budget. Over the course of 5 years, including interest on the loan, I will spend $47,803 on the car. My selection of a 5 year loan will allow me to have a bit more wiggle room in my monthly budgets.
I had the choice between a 3, 4, or 5 year loan. With the 3 year loan, I could afford to spend $33,998.68 on a car. With a 4 year loan, I could spend $44,509.02. With the 5 year loan, I could spend $54,633.11.
My salary is split up into many basic categories.
For my $120,000 salary, here is my budget on all living expenses, both yearly and monthly.
transportation (car, gas, maintenance): $18,000/$1500
Mrs. O'Connell would like to buy a car that costs $24,516. She has the option to pay a 5 year loan with 0% interest or to get a $4000 rebate but pay 3.75% interest for 5 years. The rebate option is the better deal and would save her almost $2,000!!