Automobile Affordability
Good credit can put driving a new or used car or truck within your reach.
How can I determine what vehicle fits my budget?
How can I reduce my monthly vehicle payments?
Should I finance or lease my new vehicle?
How can I determine what vehicle fits my budget?
To determine automobile affordability, take your monthly income after taxes and deduct your monthly expenses for fixed items like rent or mortgage payments, utilities and insurance. Then subtract your flexible items such as food, clothing, credit card payments and recreation. You can use the amount that is left over to help determine what vehicle you can afford.
How can I reduce my monthly vehicle payments?
One option is to save as much money as you can for the down payment before you finance your vehicle. After all, the more you put down on a new vehicle, the lower your monthly payment will be. Another option is to trade in your current vehicle. In some cases, your old vehicle will take care of your new vehicle's down payment. Leasing is another alternative you should consider. Consult the leasing section of this site for more information.
Should I finance or lease my new vehicle?
If you like to drive a new vehicle every few years, need low monthly payments and prefer to avoid the inconvenience of reselling a vehicle, leasing could be for you. If you prefer to keep a vehicle for a longer period of time, buying your vehicle may be the right decision for you.
