Can I Afford A New Car If I Make $700 Per Month

Posted in Student Car Insurance | Asked on Jun 29, 2010
  • I am a college student who lives at home.

    I work at the hospital part time making $700 per month.

    I plan to buy a 2010 honda civic. The monthly payments will be $300 per month

    Will my income be enough to cover this payment, gas, insurance etc?

    There are 17 Answers for "Can I Afford A New Car If I Make $700 Per Month"

    1. Kate says:

      Depends on how much your insurance is… you won’t have money for anything but gas, car payments and insurance…that is for sure.

    2. yes_its_me says:

      No, you will need a cosigner.

    3. sync says:

      depends on your credit history if i was you id get a 5000 loan and pay it back over 2 years there might be some interest but you will have more money and only have to pay about 150 a month back

    4. lil dothan says:

      i would say no because you have to factor in eating and other expenses that may come up. the budget is just too tight

    5. Streeta J says:

      I wouldn’t

      check out carmax or drive time for 2000-2004 model honda
      I feel like that is the best move to take until you graduate and get a career!

      you will have enough, but I would save as much as I could so that you will be in a good position when you are ready to move out!

    6. Chris says:

      This is basic math. Find out the insurance cost of the car. divide by 12 months. I do not know how far you drive. Do you want to put yourself in that much debt?

    7. bull says:

      i dont think so the insurance cost alot for a young person but it all depends on the car u purchase then u have rent and other bills like food and nessesitys figure car payment 200 insureace will be around 1000+ per year cause u need full coverage bank requiremnet then u need gas and oils in car and maintenance do your homewrok before u sign other wise the car will become reposessed and your credit will go in thye pooper

    8. Nick says:

      Rule #3: Never buy one item that requires more than a third of your income, unless that item is a home.

    9. ? says:

      Yea, you be ok, But watch how far you drive it.

    10. Jeff R says:

      NO. You should look for a vehicle that has only about a 70 dollar amonth payment and see what vehicles cost less by checking insurance quotes on Liberty Mutual or Progressive. Then shop around for the cheapest insurance, don’t just buy the first one. Make a list of 5 and pick the cheapest and try to find local agencies. You will have to get an older vehicle but I suggest something that gets around 25-30 miles per gallon or more if you can. 25-30 is good. It sounds like you have good credit so pay your bills and use it to your advantage by going to a respectable auto dealership and getting a good deal on an inexpensive vehicle. I mean you should be investing 10% of your income in investments and saving another ten percent. The you should be giving another ten percent to a church, charity, to politics, or other donations that affect you like you school or charities and PAC’s that advocate for health care workers and patients. Then you’ll still have to pay car payments, take a woman on a date, pay some sort of bills, buy music for your car, and upkeep it. Believe me, bills pile up on 700 a month.

    11. Carly says:

      You’re going to be making it really hard on yourself. First… if you don’t have any established credit, your interest rate may not be good, and your payment will be higher. Secondly, I bought a 2008 civic coupe last year, and I put $9,000 down on it. You should be putting a large chunk of the price down on the new car. My payments are $235/month (AFTER that large down payment and a low interest rate). Insurance for you might be close to $200/month, being a young male. Gas milage is great, so that’s not a big deal. To fill my tank it has been around $25, and I get close to 40 miles per gallon. Also consider maintenance and possible insurance deductibles ($500 or more).

      Don’t stretch yourself too thin. Your payment will be higher than $300. Get a car that is nice, but not brand new. If you get a 2005 civic with some miles on it, it will still be an awesome car, and you can still have some money to buy other things. You’ll regret that big car payment/insurance for sure.

    12. Think??? says:

      Yes, but you will use all your money on the car. So if you plan to sleep in the car and eat it to, your okay. Try a older, cheaper car.

    13. alfredb1979 says:

      A new Civic on $700 month income?

      Now, THAT is funny!

      You think those new sets of tires, oil changes, wiper blades, $150/month insurance, and assorted unexpected surprises are free or someting?

      My brother could not make a 2008 Civic at $425/month work on a $1200/month income.

      That, mi amigo, is your sign and it’s not good.

    14. PETER GRIFFIN says:

      Well, technically, you can afford it but don’t plan on eating out or going to the movies because your entire check will go towards the payment, insurance, maintenance & gas.

      But the thing is, banks usually require you have to have a minimum income of $1200/month, which should disqualify you. You can certainly try with a co-signer or wait until you get a full-time job.

    15. SundayLeftovers says:

      Not comfortably, but you may be able to save some money on insurance if your parents are willing to add you on to theirs. Brand new cars aren’t always the best investment, based on their instant depreciation. However, Civics have a great reputation for longevity and this car will likely last through your college career and beyond.

      The biggest challenge will be establishing a budget that allows you to pay a little more on your car payment monthly so that you can save money on interest (making it a better deal) and pay it off sooner.

    16. N says:

      Not A CHANCE.

    17. Copenhagen ring says:

      not sure depends on weather you can afford tuition along with the money to fix a new car that ain’t got a bumper to bumper extended warranty. they don’t build them like they used to. so it depends…that and insureance ain’t cheap now days either.