Share this
by Marsh Finance on Aug 8, 2024 3:00:00 PM
Getting a car is exciting! But before you zoom off, there's an important question. How much can you afford?
We know that buying a car is a big deal, so you want to budget wisely. This guide helps you figure out how much car finance you can afford. To do this, think about how much money you have coming in and going out each month.
We also have a cool car finance calculator that makes this whole process way easier! Check it out by clicking here.
Understanding Total Car Ownership Costs
Car payments aren't the only thing to think about! There's other stuff that costs money too:
Remember all these costs when figuring out how much you can really afford. This way, you won't have any surprises later!
Assessing Monthly Income Vs. Car Finance Payments
The money you earn each month (your income) is key when figuring out how much car loan you can get.
We have a good rule of thumb to try. Keep your car payments under 15% to 20% of your take-home pay (that's the money you get after taxes). This way, you'll still have enough money left over for other things.
Using The Car Finance Affordability Calculator
Our car finance affordability calculator is a is a really good tool. By adding info like your monthly income, expenses, and desired loan term, the calculator provides an estimate of how much you can afford to borrow. This estimation considers both the loan principal and the interest. This gives you a realistic picture of how much you might pay a month. Click here to check it out.
Special Considerations For Car Finance With Poor Credit
Worried about your car loan options because of past money bumps? Don't sweat it!
Even if your credit history isn't perfect, you might still be able to get a car loan. At Marsh Finance, we help people with all sorts of credit histories. The thing to remember is that a loan with not-so-great credit might cost a bit more each month. That's why it's extra important to make sure you can really afford the car you want.
Key Factors Impacting Loan Affordability
Several factors influence how much you can afford in car finance:
- Interest Rates: The rate you’re offered impacts the overall cost of the loan.
- Loan Term: Longer terms mean lower monthly payments but higher total interest.
- Down Payment: A larger down payment reduces the loan amount. This makes repayments easier to manage.
Final Thoughts
There are lots of costs that come with a car. Our car finance calculator can help you figure this out.
Even if your credit history isn't perfect, we can help you find a car loan that works for you. The key is making sure you can comfortably afford the monthly payments.
Remember, a good plan is your best friend when buying a car! This way, you can turn your dream into a reality.
You might have a great credit score, or a not-so great one. This doesn't necessarily matter. With our tools and expertise, we can guide you towards your new car. Click here to start your journey today and drive away in your dream car. 🚗💻📈💳
Finance is subject to status