Certified financial planner Lauren Lyons Cole talks about how to know if you can afford that dream car or not. The following is a transcript of the video.
These days car loans last for six years, even seven years in some cases, and you really don't want to be paying for a car over that period of time.
You might need to buy a car and you might want to buy a car but a lot of people end up in a position where they're paying far too much for their car payment.
if you're going to take out a loan to pay for the car I would recommend limiting it to three, four years at most. And if you can't afford to pay off the car in that time frame then you can't afford the car unfortunately.
There are lots of good, solid, used cars that you can go you know read about online, understand all the reviews, make sure you're making a good purchase. Don't let a salesperson tell you what a good purchase is.
Do the research on your own but make sure that you set your budget ahead of time so that you can either pay cash up front or pay the loan off in 3 to 4 years.