Having a reliable vehicle is important for life around Heath, OH. Deciding to buy a used car can be a financially smart choice that gets you everything you need. It is important to have realistic expectations when it comes to what you can afford. At Huber Automotive, we have some tips for setting a good budget for your next used vehicle.
General Rule of Thumb
Experts agree you will want to limit how much you are spending on a vehicle to a certain percentage of your monthly income. Although some say you can go as high as 35%, sticking closer to 20% will be easier on your wallet. This means that if you make $3,000 a month after taxes, you can spend up to $600 a month on your vehicle. While that sounds like it will buy a lot of car, keep in mind that this number includes more than just your monthly loan payment. It also includes fuel, insurance, and repairs.
Tips to Keep in Mind
The general rule of thumb will not work for everyone. If you are already spending a higher percentage of your income on your rent or mortgage than average, for example, you will have less to spend on your car. The same is true if you have a large amount of credit card debt. Be sure that you know how much money you have coming in and going out every month when deciding what you can afford on your used car.
You should also have a clear view of what you want in a used car. If it is essential to have an all-wheel drive, for example, keep in mind that you will be paying more. The same is true for things like three-rows of seating. Successfully purchasing a used vehicle requires careful balancing of what you can afford and what you need. Our team can help drivers do just that.
