How to Budget for a Used Car

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Budgeting for Affordable Vehicles

When you’re budgeting for a used vehicle, there are many aspects to consider. Put yourself in the best financial situation possible when purchasing and driving your next used vehicle. How do you budget for a used car? Follow a few tips from your automotive professionals at Autohouse Kingston when you’re looking to budget for your next used vehicle in Kingston, ON.


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How to Budget for a Used Car in Kingston, ON

  1. Consider Your Income: Assessing your take-home income into your budget is essential. Automotive expenses, including vehicle payments, gas and maintenance shouldn’t exceed more than 20% of your take-home pay. 


  1. Down Payment: Consider the down payment on your vehicle, as much as possible is a good thing, but between 15-20% of the vehicle cost is ideal.


  1. Loan Approval: Getting pre-approved for a loan will help you understand what interest rates you qualify for, and how it will affect your total monthly payments. You’ll also want to factor in how much more you’ll end up paying in the long run if you’re opting for a loan.


  1. Taking Care of Your Vehicle: Factor in fuel and routine maintenance costs when budgeting. Also having extra cash put away as a safety net for older vehicles that are no longer under a manufacturer warranty is wise. 


  1. Total Cost of Ownership Estimate: Consider the factors we have listed in addition to any other financial factors faced by owning the vehicle in question. This number gives you a clear idea of how much you should budget overall.


Consider these tips from Autohouse Kingston when budgeting for your next used vehicle. Explore our vast inventory of used vehicles of all makes and models, and if you need further assistance, contact our professionals to help you out. Find your next dream vehicle by booking a test drive with us. Start your automotive journey with Autohouse Kingston

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