You’ve done your research and got the perfect car picked out. Now, all you have to do is determine if you can afford the monthly payments on your dream car or not. Luckily, there are a host of online sources that can help you determine how much of a payment you might be able to afford.
Examining Your Ability to Pay
Online calculators are great for giving you an estimate on how much your dream car might cost a month. What they cannot do, however, is help you make a decision about how much you can realistically spend per month. You can determine your ability to pay by examining:
- Your current bills. This includes cell phone bills, rent, gas and utilities, existing car payments, and any other recurring bills you are responsible for.
- Your savings strategy. Some people are comfortable with putting $50 a paycheck away, some need to save more. Your savings strategy is a huge factor when determining whether or not your potential car is too expensive.
- Maintenance costs. If the car is used, and not covered under warranty, these costs might be much higher than a newer car. Be realistic about how much your paycheck can cover.
- Gas costs. Not every car is extremely fuel efficient. Even if it is, you’re still responsible for gas costs…and with high prices, filling up isn’t cheap.
- Your credit score. Those with lower credit scores, or those that do not have a credit history, might be paying more in interest every month. That level of interest can really affect the amount your bill will be every month.
These are just a few examples to think about when determining how much you are able to contribute to a car payment a month. Never opt for a higher payment than you are comfortable with, even if you think the car is perfect for you!
Found the Perfect Car?
If you’ve found a car that you couldn’t help but to purchase, get it registered and titled at MVD Express! We’ll get you processed in no time at all and have you back on the road as soon as possible. Come see us today!