How much less home will I be able to buy if I purchase a new car?Regrettably, it’s a question that I rarely get asked. In fact, I’ve never been asked that question. The topic has only ever come up when I have to dash someone’s hope of buying their dream home because they impulsively saddled themselves to a $600 per month car note for six or more years and then a few months later thought they might want to buy a home. Buying a new car is an exciting opportunity, and if you can find yourself a cheap deal on car insurance without deposit, hopefully your chances of affording a home should not be harmed too much.
According to The Wall Street Journal the average price of a new car is now $31,000, up $3,000 in the past four years. But at the same time, the average monthly car payment edged down, to $460 from $465—the result of longer loan terms and lower interest rates.