What To Consider When Deciding on a Car-Buying Budget?

October 22nd, 2020 by

The planning stages of any financial investment and decision are often the most critical. Planning stages when buying a used car from Auto Now on 79th & Wornall in Kansas City are no different. With every financial investment, part of the planning stage is creating a budget. Regardless of whether you are buying a new car or visiting an Auto Now used car dealership lot in Kansas City, creating a budget for what you can afford including miscellaneous car costs is an important first step. Buying a car is a big deal and a financial commitment that should not be taken lightly. Our team at Auto Now is experienced and has been working to put our customers into reliable and affordable vehicles for over 20 years.

Maybe you haven’t quite decided on purchasing a vehicle but you are entertaining the idea, creating a car-buying budget is a good first step in discovering what you can afford. But where do you start and what should you consider?

What do you make and what are your expenses?

When buying a car and figuring out your budget, the first place to start is to figure out what you can afford. To do this, we encourage our customers to figure out what their take home pay is each month and what their expenses are each month. By figuring the monthly expenses to take-home pay, we’re able to figure out how much you have to work with and how much financing you will need. While most dealerships start with the car and then talk about financing, our team at Auto Now and our used car lot on 79th & Wornall start with what you can afford and help you find a reliable vehicle that suits your needs.

How will you finance your new vehicle?

Once you’ve calculated what you can afford within your budget, another piece of the car-buying puzzle is to figure out how you will be paying for the vehicle. While most dealerships finance through third-party lenders, such as banks and credit unions, Auto Now and our buy here pay here program means we are a one-stop-shop. At our used car lots, the process stays under one roof and you work with the same team, not only putting you in a vehicle the most efficient way possible, but also building a relationship with a team you can trust who works for you.Some suggestions when coming up with a budget and accepting financing:

  • What are your initial costs?
  • Will there be a downpayment and what can you afford to put down?
  • What are the taxes?
  • State fees for licensing, registrations and title.
  • Are there dealership fees?
  • What will your monthly car payment be?
  • What about maintenance, insurance, gas, and registration renewal?

In our buy here pay here program, we make the buying process as easy as 1-2-3. Regardless of credit score or past financial history, we’ve been working to help provide our customers with auto financing and a reliable vehicle for over 20 years. Come to our used car dealership on 79th & Wornall in Kansas City and see why we have six locations throughout Missouri and Kansas with an inventory of over 500 vehicles to choose from. You can expect fast and simple process with no-hassle financing. Of our huge selection of vehicles, all come with the peace of mind of a 24 month 24,000 mile warranty and have all been professionally inspected by a third party mechanic. Financing has never been easier with our online pre-approval application and making payments on time has never been more efficient with our online payment portal.

Some other tips to consider

There is countless information on creating a car budget online and even calculators which help figure out exactly what you can afford. While some of the information varies from site to site, dealership to dealership, or person to person, much of the advice holds true.

  • One good rule of thumb is that your monthly car payment should not exceed 15-20% of your disposable income.
  • If you’re looking to make a downpayment, try to aim for about 20% of the cost.
  • Don’t purchase a car you can not afford. This can lead to missed payments, repossession of the car or damage to your credit score.
  • Trade in your old vehicle to help lower your overall payment, thus lowering your monthly payments.
  • Figure out your total debt. You should not spend more than 36% of your gross monthly income on debt.
  • Use one of a dozen affordability or budget calculators online.
  • Don’t forget about maintenance and the cost of fuel. If you commute to work each day, calculate the mileage round trip and learn what that will cost in gas per month.

Auto Now is a family-owned business with locations throughout Kansas and Missouri including in Kansas City, Independence, Belton, Olathe, Topeka, Wichita, and the greater Kansas City Metro area. Our 6 locations hold an inventory of over 500 vehicles to choose from, continually rotating as these used cars find homes throughout Missouri and Kansas. Your next used or pre-owned vehicle is as easy as 1-2-3 with our buy here pay here in-house financing program. Pick up the phone or swing in for a visit to talk with an experienced member of our staff.

Visit Auto Now at any of our locations and check out our extensive inventory online as well as in person. See a car you like? Fill out our online loan application so we can help you get into the vehicle you love.