How much should I pay for a used car?
If you're looking for a used car for sale, odds are that you're on a budget. To save money, it's essential to find the right price point before you start visiting used car lots near you. Ewald Auto has some wisdom to share from our experience as a used car dealership in Waukesha. Let's learn how to set the ideal budget for your next used car!
Income | How much should I pay for a used car?
Your used car budget will mostly depend on your income and financial situation. General financial wisdom holds that your total auto budget shouldn't exceed 35% of your income. Keep in mind that your auto budget isn't only the purchase price of your used car for sale. Your auto budget includes insurance, maintenance, repair, parking fees, fuel, etc. When you decide on a budget for your used car for sale near Waukesha, you'll need to factor in all automotive expenses.
Some customers might need to spend more of their budget on their vehicle than others. If you're shopping for a used truck for sale to use as a work vehicle, it may be prudent to invest more money. If you're looking for a used SUV for sale to use as a beater, you might want to spend less cash. It all depends on your personal needs. Don't worry, the finance team at our used car lot near you can help you pin down the ideal budget for your income and lifestyle!
Debt | How much should I pay for a used car?
Americans owe over $807 billion, between nearly 506 million card accounts. Per CNBC, the average American has $90,460 in consumer debt. Planning to finance that used car for sale? Your existing debt will play a part in determining your budget. Our used car lot near you makes it easy to secure the most favorable loan for your situation. But if your debt to income ratio is too high, the likelihood of loan approval is lower. You might not secure the car loan amount that you want. Lenders may not extend the favorable rates reserved for qualified applications. Bottom line, your debt will affect your used car budget.
If you have a great deal of existing debt, it's smart to pay it down as much as possible before buying a used car in Waukesha.
Financing | How much should I pay for a used car?
If you're paying cash for that used truck near you, you'll have a general idea of how much you can afford. But if you're planning to get an auto loan at our Waukesha used car dealership, it's not as clear. Even when you secure approval, you still need to do the math. You don't want to overextend your budget by taking out a larger loan than you can comfortably pay off. That's why it's smart to line up your financing before you start browsing used cars for sale. You can keep your emotions in check once you understand your budget.
Conclusion | How much should I pay for a used car?
After you factor in all monthly expenses and secure financing, your auto budget might surprise you! When you're ready to discover how much to spend on a used car, stop by Ewald Auto.
