How much should I earn as a minimum to buy a vehicle within a period of no more than 2 years?

Buying a car is a goal that many wish to achieve, but it requires careful financial planning. With the market for vehicles constantly changing, it is essential to know the best financing options and the requirements necessary to be able to acquire one. In this guide, we will provide you with all the necessary information so that you can buy your car within two years.

In Peru, acquiring a vehicle can seem like a challenge, especially when you consider the variety of financing options available. From vehicle loans From planning your own savings to planning your own savings, it’s crucial to understand what the best strategy is for your financial situation. Here we explain how you can calculate your necessary income and the steps to follow to make the dream of owning your own car a reality.

Vehicle Financing Options

In order to buy a car within a period of no more than two years, it is essential to know the different financing options available on the market. Among the most common are vehicle loans offered by banks and financial institutions, as well as specific savings plans for car purchases. Vehicle loans are usually the most popular option, as they allow you to access the vehicle immediately and pay for it in monthly installments. It is important to compare the interest rates and conditions of each entity to find the option that best suits your needs.

Savings planning

If you prefer to avoid going into debt, a viable option is savings planning. This involves establishing a monthly savings plan that allows you to gather the amount necessary to purchase the vehicle within the desired time frame. To do this, it is advisable to open a separate savings account and allocate a fixed percentage of your monthly income to this account. This strategy requires discipline and commitment, but it is an excellent way to avoid interest and keep your finances under control.

Calculation of the minimum income required

Determining how much you need to earn at least to be able to purchase a vehicle within two years depends on several factors, including the cost of the car, the financing term, and your monthly expenses. As a general rule, it is recommended that the monthly payment on the vehicle loan not exceed 30% of your monthly income. For example, if the car you want costs S/40,000 and you plan to finance it in two years (24 months), you would need monthly payments of approximately S/1,667, considering an average interest rate.

Expense and budget evaluation

It’s crucial to evaluate your monthly expenses and create a realistic budget that includes paying off your car loan or saving for a car. Consider your current and future income, as well as any additional expenses you may have. Cutting unnecessary expenses and prioritizing saving for your car will help you reach your goal more quickly. Tools like financial management apps can be very helpful in keeping you on track and monitoring your progress.

Tips to improve your savings capacity

Increasing your income and reducing your expenses are the two main strategies to improve your ability to save. You can look for additional income opportunities, such as freelance work or temporary projects, that provide you with extra income that you can put towards your goal of buying a car. It is also advisable to review your spending habits and make adjustments where possible, such as reducing expenses on entertainment or eating out. Every little saving adds up and brings you one step closer to your goal.

How much should I earn to buy a vehicle?

According to the economist Renzo Vidaldirector of the magazine Análisis Económico y Financiero and of the Professional School of Economics at the Universidad San Martín de Porres. It should be noted that the salary is consulted by financial institutions to evaluate the economic capacity of the person interested in applying for the loan. The normal monthly income is S/1,800, although some banks require a sum of S/2,000.

If you are looking for a vehicle loan for approximately S/28,000 to S/30,000 for 2 years with a rate of 15% – 16% you would be paying approximately S/1,400. There are obviously some financial institutions or savings banks that also lend you money, but at a very high cost that borders on 100%, which means you would be paying a fee close to S/2,300.

Now, if you are going to ask for a vehicle loan for US$14,000 or US$16,000, the rates also fluctuate from a bank that can lend you at 15% to a savings bank that can lend you up to 80%. If they lend you at 15%, you would be paying around US$500, which at the exchange rate is about S/1,800. Clearly the amount is higher and the time is also longer.

If you turn to a bank that may be charging you 80%, you would be paying approximately US$900. Those are the amounts you would be dealing with. For example, if the amount is S/80,000, because it is approximately US$20,000 at an annual rate of 15% with a term of four years, you would be paying approximately S/2,200, but if the rate were raised based on what we have discussed, for example to 95%, you would be paying approximately S/5,000 over 4 years for the S/80,000 financed.