Journal 5-1-1.docx - Jessica Mays Journal 5-1-1 According to the affordability formulas Joe-Bob can(but probably shouldn’t afford to buy a car The

Journal 5-1-1.docx - Jessica Mays Journal 5-1-1 According...

This preview shows page 1 out of 1 page.

Jessica Mays Journal 5-1-1 According to the affordability formulas, Joe-Bob can (but probably shouldn’t) afford to buy a car. The debt to income ratio is 36%. Once Joe-Bob adds a new car payment, as well as insurance, his debt to income ratio will be well over the 36% that is recommended to purchase a new car. I believe in this situation, he should follow the formulas. Of course, there are many other factors to consider if he is in desperate need of a car. Is he spending a lot of money on
Image of page 1

Unformatted text preview: public transportation to get to work? Does he have a working vehicle currently? I think I would need more information about Joe-Bob’s lifestyle and current situation to make a better judgment call. Taking out a car loan could impact Joe-Bob in a lot of ways. Factoring in the new payment, as well as insurance, gas, and maintenance, he could be setting himself up to not have a security cushion of money in the event of an emergency or even if he just wants to take a vacation....
View Full Document

  • Fall '17

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes