# \$11,000 Car Loan

What's the monthly payment on a \$11,000 car or truck?
Purchase Price
\$
Down Payment
\$
Interest Rate
%
Loan Term
After down payment, the auto loan will be \$8,800.
At 5.95% interest with a 48 month loan:
Monthly payment = \$206
Total yearly payments = \$2,478
Payments by Interest Rate
Interest Rate Monthly
2.0% \$191
3.0% \$195
4.0% \$199
5.0% \$203
6.0% \$207
7.0% \$211
8.0% \$215
9.0% \$219
10.0% \$223
Payments by Amount Down
Down Monthly
\$0 \$258
\$1,000 \$235
\$2,000 \$211
\$3,000 \$188
\$4,000 \$164
\$5,000 \$141
Payments by Loan Length
Length Monthly
24 months \$390
36 months \$268
48 months \$206
60 months \$170
72 months \$146
84 months \$128
Can I afford a \$11,000 car?
What's the salary needed for a \$11,000 vehicle? A general rule of thumb for buying a car or truck is the 20 / 4 / 10 rule.
20 / 4 / 10 Rule:
• Make a down payment of at least 20% cash. For a \$11,000 vehicle, this would mean saving up \$2,200.
• Pay back the loan in 4 years or less.
• Don't spend more than 10% of your income on payments and insurance. Rough estimate: your annual income should be at least 2.5 times the purchase price. So to afford a car that costs \$11,000, you would need to make at least \$27,500 per year.
Yearly Household Spending on Transportation
Source: U.S. Bureau of Labor Statistics, 2018–2019
Metro Area Spending
Washington, D.C.\$13,646
Anchorage\$13,313
Baltimore\$13,255
Phoenix\$12,525
Houston\$12,352
Denver\$12,331
Boston\$11,779
San Diego\$11,704
Seattle\$11,506
Detroit\$11,260