Posted: Friday, May 27th, 2016
Purchasing a new or used car is a lot more complicated than just walking into a dealership and paying the asking price for the car you want. There are other things to consider when you start to plan a vehicle purchase. The best way to make a smart choice, and actually understand how much you can afford, is to plan out a detailed car loan financing budget. Here at Green Light Auto Credit, we want to help you make a smart car purchase, so read on for some tips on how to budget!
Budget For Your Next Car
People often have poorly conceived notions of what owning a car actually costs. Here are some of the expenses you need to consider when budgeting for your car purchase:
- Purchase Price: Sure, the purchase price is technically the biggest expense in owning a car, but it isn’t the only expense. A lower price doesn’t always make a car less expensive.
- Interest and Financing Fees: When you take out a loan for a new or used car you will be paying both some financing fees and interest on your loan. Obviously, a lower interest rate will help reduce the overall cost of financing. A shorter loan term, and a bigger down payment, will almost always reduce the overall cost of your loan. You can use our convenient payment calculator to estimate the cost of an auto loan.
- Fuel Costs: A more efficient vehicle will almost always cost less to own in terms of fuel costs than a less efficient vehicle. You can easily find the EPA fuel economy ratings for used cars on fueleconomy.gov to help you compare your fuel costs long term.
- Maintenance and Repair Costs: How often will you need to have your new car in for maintenance? How much will it cost? A more reliable car will end up having a lower cost of ownership and well need less maintenance, saving you money. Older cars or cars with more miles on the odometer will also need more replacement parts and service than a newer car.
Add all of those expenses up to arrive at a total cost of ownership for a vehicle, and then you can see how much room is in your household budget for your car.
Find the Car Loan Financing Budget You Need at Green Light Auto Credit
Do you have questions about your car loan financing budget options or about how to budget for your next vehicle? Contact Green Light Auto Credit online now or give us a call at (800) 200-5551 with any questions – we’ll be happy to help you afford the car you want with a low interest auto loan.
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