What Car Can I Afford
If you’re ready to buy a new vehicle, you might be wondering “What car can I afford?” That’s a great place to start the cay buying process. If you’re still trying to figure out what you can afford, we’re here to help! Just determining what car you can afford can be a complicated process. You’ll want to think about the price you can afford, how much loan you can afford, and what monthly payment you can afford. We can walk you through it all at Smith Chevy Hammond!
Know What You Can Afford Ahead of Time
It’s important to be prepared with some key information so that you can go into the car buying process with the ability to focus on your new car search. It’s relatively easy to calculate out what you can roughly afford. You’ll want to first subtract your fixed expenses—like rent/mortgage, food, healthcare—from your total income. Whatever is left over is money that can be used for extra expenses, like buying a new car.
Determining What Car Can You Can Afford
You’ll want to use the 20 percent rule to figure out how much you can afford to spend on a new vehicle. Financial experts use this rule to mean that your vehicle-related expenses shouldn’t exceed 20 percent of your monthly take-home pay. For example, if you take home $2,500 each month, then you shouldn’t spend more than about $500 on a car (including loan payment, gas, insurance, etc.). You can apply this rule to your own income.
What Car Payment Can I Afford?
With the 20 percent rule in hand, you can now determine how much you can afford for a monthly car payment. Your monthly payment will depend on how much you can save for a down payment. The more you put down on a car, the less you’ll have to borrow, the less interest you’ll pay over the loan’s term, and the lower your monthly payment.
If you don’t need a new vehicle immediately, it would be a good idea to start saving according to the 20 percent rule first. Once you have a good portion saved up, you can learn about financing options at your preferred dealer to see what will be at or less than 20 percent of your monthly take-home pay.
All of Your Finance Options
Smith Chevrolet Hammond Indiana has got you covered with great financing options. We work closely with some of the top lenders in the area to get you the best rates and terms we can. This ensures you will have a low monthly payment as you pay off your new or used Chevy vehicle. It’s easy to get started. Bad credit is no problem. We also help many first-time buyers get financing. We’ll look at your situation and come up with the best financing plan we can.
Financing is available with no money for up to 60 days. Ask us about our zero-down options. Once approved you’ll visit us to sign the loan. Just bring your driver’s license and insurance card. You’ll also need to bring recent pay stubs and proof of residence such as phone or utility. If you’re trading in a vehicle, we’ll need the title or registration of that vehicle as well.
Visit Smith Hammond!
Looking for Chevy dealers in Northwest Indiana? Visit Smith Chevrolet today for all your needs, whether you’re looking for a new or used car, need to schedule service with our Smith Chevy Parts department, or want to trade-in your vehicle today! At Smith Motors, our unmatched service and diverse Chevrolet inventory have set us apart as the preferred dealer of Hammond residents. Visit us to learn more about figuring out which cars you can afford or what financing options are available today!
