We here at the Wobbles Institute of Data Extrapolated Without Research — or WIDER since no one pays attention to that second dubya — have created a 100% mostly accurate three step process that determines the answer to, “How much should my car payment be?” Rather than be snarky and hit you with an unsolicited life lesson from another Institute of DER, we at WIDER believe in answering the question you wanted answered. This sentence is only here for transition.
1. Take your net weekly pay. That’s the actual amount of money deposited into your bank account or cashed into your hands after taxes and deductions.
A. $300 net weekly
B. $600 net weekly
C. $1,200 net weekly
D. $2,400 net weekly
2. Multiply that number by 0.80. WIDER has determined that all people globally are most satisfied when placing 80% of their net weekly pay towards a car or some other stuff, but mostly car stuff.
A. $300 × 0.8 = $240 monthly (CPay + Ins.)
B. $600 × 0.8 = $480 monthly (CPay + Ins.)
C. $1,200 × 0.8 = $960 monthly (CPay + Ins.)
D. $2,400 × 0.8 = $1,920 monthly (CPay + Ins.)
3. Subtract your monthly insurance. If you pay your insurance in full then you can consider your monthly insurance payment to be $0 for as long as you continue to pay in full. We will vary the insurance payment in the next examples.
Examples: (CPay + Ins) - Ins = CPay
A. $240 - $120 = $120
B. $480 - $160 = $320
C. $960 - $220 = $740
D. $1,920 - $340 = $1,580
You will be left with just the monthly car payment at this point and the answer you wanted to the question you asked.
Oh, you’re still here?
I betcha wanna know how much car your payment gets ya, right? Lemme put my khakis back on since I wanna keep this all professional and stuff.
Here is the only foolproof (Wobbles Tested) reverse loan calculator I could find within the first 6 results on Google. Simply enter the monthly car payment that we found in Step 3, an interest rate, and finally how long you want the loan to be in terms of years. Those three points of information will collaborate into some type of math and yield the solution to your quandary.
Examples: PAYMENT | APR | TERM | = CAR
A. $120 month | 4 APR | 5 years | = $6,515.89
B. $320 month | 3.5 APR | 7 years | = $23,809.79
C. $740 month | 3.19 APR | 6 years | = $48,433.04
D. $1,580 month | 2.89 APR | 5 years = $88,170.38
Have fun playing with that and stay tuned for more WIDER topics including how much to spend on a project, modifications, multiple vehicles and so on because this money is always going somewhere.
Wobbles the Mind
Wobbles is in no way credible, accredited, or any other term with “cred” in it. He just likes his opinions to look snazzy. #Branding
The Wobbles Institute of Data Extrapolated Without Research (WIDER)