How much car can I afford with bad credit?
Subprime lenders do not ask what payment you want. They cap the payment at roughly 15% to 20% of your gross monthly income, and a deal above that cap gets restructured or declined. On $3,000 a month that is a payment near $450 to $600. This works the number from the lender’s side.
At a 15% to 20% payment-to-income cap, a lender is likely to allow a payment between $450 and $600 a month.
| Term | Payment at 15% PTI | Vehicle price it supports | Payment at 20% PTI | Vehicle price it supports |
|---|---|---|---|---|
| 48 months | $450 | $16,587 | $600 | $21,616 |
| 60 months | $450 | $18,899 | $600 | $24,699 |
| 72 months | $450 | $20,816 | $600 | $27,255 |
Vehicle price includes your down payment. These are estimates using published tier averages at 18.86% APR — not a quote, not an offer, and not a credit decision. Your actual terms depend on the lender, the vehicle, and your documentation. Tax, title, and registration are not included, and neither is insurance, which is frequently the line item that breaks a subprime budget.
Why this is calculated from income rather than from the payment you want
Most car affordability calculators start with a payment you choose and work backwards to a price. That is a budgeting exercise, not an approval test.
Subprime underwriting runs the other direction. The lender takes your gross monthly income, applies a payment-to-income cap, and that ceiling determines the largest payment they will approve — regardless of how confident you are that you could manage more. This tool shows that ceiling, because it is the constraint that actually decides the deal.
What this does not include
Insurance is the big one. Poor-credit drivers face materially higher premiums in most states, and for a subprime buyer the premium is frequently the line item that breaks the budget after signing rather than the payment. Get a quote on the specific vehicle before you commit to it.
Tax, title, and registration are also excluded, as are any dealer add-ons — and add-ons are financed at the loan’s APR, so they cost considerably more than their sticker price over the term.