How Much Car Can I Afford?

Posted on July 6, 2018

The decision to buy a vehicle isn’t always easy. It’s a big decision – for most people, it’s the second largest purchase you make, aside from buying a home. And often, it isn’t obvious if you can make the financial aspect of car ownership work. You might ask yourself, “How much car can I afford?” Luckily, in today’s automotive market, owning an Acura is easier than you might think. Salespeople, managers, and financing managers are all trying to help you achieve what you want: owning an Acura. It does come down to finances, though, when you’re wondering how much car can I afford. Let’s take a look at a few simple criteria to help you decide if car ownership is for you, and how much you can afford.

How Much Car Can I Afford?

Your Down Payment

It’s always a good idea to put money down on the car you want to buy. It does a few great things for you. It lowers your monthly payments, makes your vehicle purchase more secure for the lender, and can help you step up to a higher trim level. The more money you can use as a down payment, the better. For every $1000 you can put towards your Acura purchase, you lower your bi-weekly payments by about $15.

Your Wiggle Room

How much extra money do you have at the end of the month that isn’t committed to something? It’s calculated by subtracting your expenses from your net income. You don’t want to spend it all on a car payment, though. You need to have enough set aside for fuel, insurance, and wiggle room for unexpected expenses. Attempt to keep 20 percent of your income free of commitments.

Your Car Payment

Decide which Acura model you like. Take it for a test drive. Then, if it’s the right car for you, look at the payments you’ll need to make. Does it seem like you have the wiggle room to make it work? Does your income support it? The easiest way to decide if you can afford the car payment is to get pre-approved for Acura financing. Your product advisor can help you decide which car payment works best for your situation, answering the question, “How much car can I afford”.   Want to know how much car you can afford? Visit Jay Wolfe Acura online or in person to complete your credit pre-approval. We’ll help you drive away in the Acura you’ll love.