The first step to buying your next used car is figuring out how you’re going to finance it. In this guide, we at Stateline Off Lease Auto will show you step by step how you can finance your next used car by creating a budget, weighing your options, and more. Used car shoppers in the Warwick are should read ahead to learn more!
1. Nail Down a Solid Budget.
Before you do anything else, you need to make a budget. Figure out exactly what your monthly take-home pay is and what existing expenses you have. Then, determine how much you think you can afford to pay per month for your vehicle.
Generally, you shouldn’t spend more than 15 to 20% of your total monthly take-home pay on vehicle payments. This may seem low to some shoppers but having some wiggle room is integral to being able to keep up with your payments, even if you find yourself with unexpected expenses down the line.
2. Don’t Forget About Additional Costs.
On top of the monthly payments you’ll need to make on your used car, you’ll also have a few other costs you’ll need to make. The first additional payment you’ll need to make is a down payment. You’ll want to put at least 10% down but the more, the better. You’ll also need to factor your auto insurance payments and upkeep costs, such as maintenance and unexpected repairs, into your budget.
3. Consider Your Payment Options.
After taking a look at your budget and existing expenses, you’ll be able to properly weigh your payment options. Shop around for different rates at dealerships within driving distance from you. You should also explore your financing options online to get a comprehensive understanding of what’s available to you.
Typically, with a used car, you’ll need to buy it. However, depending on the vehicle you’re looking at, you may be able to lease it, which will give you a little more wiggle room in your budget.
4. Sit Down with a Finance Professional.
Once you have all your ducks in a row, it’s time to take the final step: sitting down with a finance professional to hammer out the details of your finance plan. When you choose used car financing through a dealership, a finance expert will be able to walk you through the process and help you find a payment plan that truly fits your needs.
Find Your Next Used Vehicle Today!
We at Stateline Off Lease Auto are thrilled that you stopped by to learn more about how to finance your next used car with us. At our used car dealership, we proudly provide an expansive selection of used vehicles as well as a variety of payment options.
Now that you have a better idea of how to finance a used car, we hope you’re ready to dive in and get the ball rolling. Shoppers in the Warwick area should give us a call today to schedule a time to come in and meet with our finance team!