How Much Car Can I Afford?

October 17th, 2018 by

man with calculator

Ready to buy a great new or used vehicle for those Arlington Heights drives? It’s important to properly understand how much you can afford. There are a lot of different factors to keep in mind when determining your monthly budget, on top of remembering your used car buying checklist. Before sitting down and signing for your next car at Muller Honda Pre-Owned, take some time to go over some tips on how to properly balance your budget and determine your available monthly budget more precisely.

Factors That Affect Your Available Budget

  • Adhere to the 20% Rule: A general rule of them to remember when determining your monthly car budget, between payments, maintenance, and upkeep, is to keep that total under 20% of your total monthly income. This is an easy way to remember how much wiggle room you have when shopping.
  • Keep Cost to Own In Mind: The initial purchase price isn’t all you need to worry about. Remember that cars continue to cost money off the lot in terms of maintenance, monthly payments, gas, and more. These costs should be factored in as well.
  • Factor in Additional Fees and Add-Ons: The sticker price is very rarely the true price you’re paying at your local Gurnee dealership. Go over the policy and agreement carefully, as well as the vehicle, so you aren’t paying for features and warranties you don’t want or need.
  • Calculate How Much You Spend: A great way to determine your available car budget is to figure out how much you typically spend in any given month. Determine how much you spend on other payments, personal items, and any other expenses, to see how much you can spare on auto payments.

Stay Within Your Budget at Muller Honda Pre-Owned

It’s easy to get frustrated when trying to determine how much car you can afford, but don’t overthink it. Keep these tips in mind and consider other options like trading-in your vehicle to decrease the initial cost. Even if your trade-in is financed, you still might be able to save money. When you’re ready to purchase, head down to our dealership near Chicago to get into your next vehicle!

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Posted in Finance, Tips