Is A Car Loan Right for Me Right Now?
Looking at your finances is an important part of figuring out the answer to the question, “How much car can I afford?” While looking at your income and monthly budget are two key steps, make sure to consider the following when figuring out what car you can afford:
Make and Model
When determining the make and model of your next vehicle, think about your lifestyle needs, wants and must-haves. Do you need room for hobbies like biking or kayaking? Are you planning on driving around a lot of family or friends? This will help you figure out the type of car that will best fit your lifestyle.
Decide on Your Budget
Make room in your budget so that you can feel comfortable with your monthly payment and the other expenses that accompany owning a car. It’s important to keep in mind some of the costs you may not have factored into your car-buying experience, too. You may be so focused on the actual price of the vehicle that you forget about sales tax, which varies from state to state; vehicle registration, which will take place after purchasing the car; or a potential dealer rebate that can save you money! If you have to stretch out your loan term to make your payment amount fit your monthly budget, you may want to consider a less expensive vehicle.
New or Used
If you're in the market for your first or your next vehicle, deciding between new and used can be a tricky choice. There's something reassuring about a brand-new vehicle that has never been driven by anyone else. However, new vehicles can be pricey. Used vehicles are much more affordable, but you're also purchasing a vehicle that has been driven by somebody else—and possibly driven harshly, with future pricey repairs lying in wait. If you choose a used vehicle, be sure to get it from a reputable source and find out as much about the vehicle’s history as possible. Make sure to consider your budget in this case—what can you afford now, and what are your essential needs when it comes to driving and feeling comfortable on the road.
Trade-in Value and Down Payments
If you are trading in your current car, you can factor your trade-in value towards the purchase price of your new vehicle. You will also need some money put aside for a down payment on the vehicle, and generally, the more money you can pay upfront, the better!
Tax, Title and Registration Fees
Make sure to factor these into your budget! These fees depend on where you live, the type of car, year and model. Generally, this is about 10% of the purchase price.
Be sure to contact your insurance company to get a quote for the vehicle you want to purchase. Proof of insurance is required to fund the loan! Monthly insurance payments are another part of your budget you need to factor in.
Ready to Take the Next Step in Vehicle Ownership?
With a Robins Financial Credit Union Auto Loan, your low rate and flexible terms will help you feel comfortable with your monthly payment. Robins Financial offers a number of car loan calculators. Find out how much car you can afford, what your payments will be, or if it is better to buy or lease.
Once you have chosen how you would like to finance your new vehicle, it's time to find it! Contact any one of our preferred dealerships to schedule an appointment, or visit our For Sale by Robins Financial page to find your perfect vehicle.