How to Know How Much Car You Can Afford

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How to Know How Much Car You Can Afford

how much car can you afford

So, you’re ready to buy a new car. Great!

Buying a new car can be exciting, but it’s also a major decision. You want to make sure that you know exactly how much you can afford to pay for your new car before you head to the dealership. But how do you know how much car you can afford? Here are some tips for creating a budget for your new vehicle.

Consider Your Other Expenses

You probably already other financial obligations you have to take care of each month, so take those into consideration first. Once all of your bills are paid, what will be left to cover the monthly expense of your new vehicle? Having a firm budget in mind for your new car will ensure that you don’t accidentally end up with a car payment that takes up too much of your budget.

Create a Wish List

When shopping for a new car, it’s important to have a list of “needs” and a list of “wants”. Be sure to have some key features in mind for your vehicles so that, when you visit the dealership, your sales associate will be able to show you the perfect vehicles for your budget, but also has as many items on your wish list as possible.

Understand the Full Cost

Have you stopped to consider the real cost of buying a vehicle? Vehicle ownership typically means incurring multiple expenses each month surrounding your car. Make sure the following items will fit into your budget.

Monthly Payment: Whether you plan to play your car off in several months or several years, make sure that your monthly payment is one that you can afford comfortably.

Insurance: How will purchasing a new car affect your insurance premiums? In some cases, they may go up when you purchase a new vehicle. Be sure to talk to your insurance company about how your new car might affect your monthly insurance costs.

Gas: As the price of gas continues to go up and up, drivers are paying more than ever for their monthly fuel chargers. If you have a long daily commute, you might want to consider looking for a car with great fuel economy to help you save at the pump.

Maintenance: Over the course of a year, your car will require different maintenance services to keep in running smoothly. So, it’s important that you include things like oil changes, tires, and scheduled maintenance in your budget when you’re planning for your new car.

Get the Best Deal on Your Next Car

When you’re ready to purchase your next vehicle, come to the dealership with the widest selection of quality used vehicles at the most competitive prices in town. At Credit Country Auto Sales, we can help you find the perfect pre-owned car or truck that fits your budget. Plus, all of our vehicles are backed by our 1000 mile / 30-day guarantee. Visit us today and you could be driving away in your new car this afternoon!