When you decide to buy a used car from Universal Used Car Superstore, it’s important to establish a car buying budget for your new set of wheels. This is especially true if you’re a first-time car buyer. Here’s how to effortlessly create an auto payment budget.
There are a lot of factors that play into knowing how much you can spend on a monthly car payment. These include the money you earn every month and all of your monthly expenses, including rent or mortgage, student loans and credit card debt, utilities, and food. Experts recommend not spending more than 15 percent of your pretax paycheck on your monthly car payment. So if you make $4,000 per month, you should be spending no more than $600 on your vehicle.
It’s important to understand that your vehicle’s budget should include much more than just the monthly auto loan. Expenses such as gas, insurance, repair and maintenance costs should also be factored into your budget.
It’s a good idea to pay 20 percent of the total cost of your car in a down payment. This will help lower your monthly car payment costs and save you money in the long run on interest rates. You can trade in your current model as part of this down payment. Check Kelley Blue Book to know the current value of your vehicle.
Once you get your budget in order, stop by our dealership to check out our affordable used car inventory!