How to Make a Car Financing Budget

Here at Indy Car Financing, we believe that driving your dream vehicle should be a reality that you can afford. However, it’s important to remember that owning a vehicle means more than just paying off an auto loan. This is why our experts have provided the following helpful tips to design a car financing budget that won’t break the bank!

Track Your Current Monthly Expenses

In order to make sure that your auto loan payments are an easily manageable portion of your total income every month, write down all of the other monthly expenses that you usually make. This might include rent, food, utilities, entertainment costs, etc. If you have your sights set on a specific vehicle, try running it through an online loan calculator to see how its cost compares to the rest of your expenses. Better to know if you can afford a certain vehicle beforehand instead of making compromises to pay for a vehicle that’s actually out of your price range.

Know the Cost of Vehicle Ownership

Aside from making your monthly car financing payments, it’s good to set aside anywhere from 10 to 15 percent of your total income for vehicle expenses. While your warranty will cover most large repairs, it generally won’t take care of routine services like oil changes, tire rotations, etc. After a few years, your warranty may run out, so having that extra money set aside will be extremely helpful for those large car repairs that are no longer covered.

Consider Automatic Payments

To avoid late payment fees and to stay on top of your auto loan, it would be in your best interest to set up an automatic payment plan. A set amount will be withdrawn from your account at the same time every month, and some institutions even reward this payment method by charging less!

Choose Indy Car Financing Today

If you’re planning on making an automotive investment in the Indianapolis area, let Indy Car Financing help! Our financial experts will work with you to make sure that you receive the loan you need to take home your ideal vehicle, no matter what your credit score or financial history may be. If you have any questions, feel free to call our associates at 866-468-6215.