Here at Van Horn Budget Auto, the word “budget” is right in our dealership name, so we know a fair bit about how to properly budget for a new vehicle. As a dealership that exclusively sells used cars near Manitowoc, WI, we understand that visitors to our lot are looking for a good deal on a good vehicle. Instead of paying an arm and a leg on a new car that will depreciate the moment you drive it off the lot, you’ve already made an excellent financial decision by purchasing pre-owned. Here are a few additional budgeting tips from our used car finance pros.
Down Payments and Monthly Payments: While some buyers can afford to pay the entire cost of a used car at upfront, most people need to take out a financing plan. When doing so, you need to first put forth a down payment. This is defined as a lump of the total cost of the car, and the remainder of the cost will be paid off in monthly payments, plus interest. The more that you can devote to your down payment, the lower your monthly payment will typically be. Other factors that affect the amount of your monthly payment include the loan term and interest rate.
Total Cost of a Car: When calculating the total cost of a used car for sale, remember that it is more than just the sticker price. You’ll also need to factor in the sales tax, title and registration fees, and optional items like extended warranties. Finally, don’t forget non-negotiables like regular maintenance, gasoline, auto insurance, and registration.
For more budgeting tips, talk to a dealer here at Van Horn Budget Auto today. We look forward to helping you take home the vehicle of your choice!