A car is a variable expense having the following properties:
Car payment ( fixed Expense) Maintenance and usage costs (variable) So in total it is a variable expense. A car payment is considered a liability.
Rent food car payment electric bill
An expected expense in a budget that remains constant is called a fixed expense. This means the cost stays the same each month, such as rent or a car payment.
Debit full price of car to Vehicles (fixed asset account) Debit Other Taxes expense for the registration fees Credit Loan Payable (liability account) for the total amount borrowed (not the total of the loan payments, just the principal) Credit Cash for any down payment
Car insurance is typically not included in the debt-to-income ratio calculation because it is considered a variable expense rather than a fixed debt obligation.
The other parties liability should if it was their fault. Your liability should cover the vehicle you damaged.
You can purchase car liability insurance from the same company you get your regular car insurance from. If you are a new car insurance customer, ask your agent to add liability insurance to your plan.
Bodily injury liability and property damage liability.
Automobile Liability insurance, YES. Liability insurance, NO. There are many kinds of liability insurance.
what can you do when you cant make a car payment what can you do when you cant make a car payment
It sorta makes sense that you would own a car. If you do not own a car why would you want liability insurance?
2 payment
You can visit pnc.com for your help on calculate a car payment. I hope this helps you find the right car and the right car payment for you. They have the tools to help you.