Time is Short! Be sure to sure to check out Easter Car Sales

Financing the Right Amount Realistic Car Loans

Before you start shopping for cars, you need to find the realistic amount that you can get financed. It will keep your budget afloat and get you a new ride.

Used Car Search

New Car Search

Get Pre-Approved
Apply for fast auto financing online, even with bad credit. Pre-Qualify Now
Auto Sales > Car Advice > Financing And Credit > How Much Should You Finance for Your Next Car

How Much Should You Finance for Your Next Car

Harry Lloyd

How Much Should You Finance

Staying realistic

It is one of the most commonly asked questions before people set out to find the best car financing they can. Strangely enough, nobody really wants to hear the answer, since they are always hoping it will be higher than what it ends up being.

There are a lot of things to do and not to do with auto loans, but the most important thing is to be realistic. You normally drive alone and you drive across town for work, so do you really need an SUV? You almost live paycheck to paycheck, so do you really need a luxury brand? The same goes for additional features and options.

Few things can put a stranglehold on your life faster than an out of control car payment. Down sizing is not a bad thing, and with the quality of cheap new cars these days, it can hardly be considered as settling.

Crunching numbers

Experts agree, getting the largest down payment you possibly can goes a long way in getting an affordable car loan. A higher initial payment means you are borrowing less.

You should ideally try to get the down payment and trade in value to a total of 20% of the price of the vehicle. This means you will be financing 80% of the total cost.

Before you know how much you can spend on your monthly car payments, you need to get a firm understanding of your budget. It is very easy for car buyers to get wooed into buying a car that they really could never realistically afford to begin with.

Getting a handle on your finances also means getting a full credit report. Your credit matters for financing a great deal. It will be one of the biggest factors in determining what kind of loan you get, and it is critical to be fully aware of your credit situation before hand.



Previous Financing New Cars Under $10000

Next Optional Credit Insurance Coverage for Your Car Loans


New Vehicles

 
 
2024 Jeep Grand Cherokee
19 City / 26 Hwy
MSRP: $38,035
Clearance Price
 
2024 Mercedes-Benz Sprinter Crew Van
0 City / 0 Hwy
MSRP: $52,120
Clearance Price
 
2024 Jeep Wagoneer
17 City / 24 Hwy
MSRP: $62,945
Clearance Price

Car Advice Topics

Further Reading

Optional Credit Insurance Coverage for Your Car Loans

February 22, 2013

There are some options available to you when you're going to finance an auto loan. Two of these optional insurances are called credit disability, and life insurance. While these do share the same names of the normal insurances available, they are a bit different. These are just a quick glance at some of the optional insurance available when buying a new car or used car.

Warning Signs from Companies Promising to Rebuild Credit

February 02, 2013

Credit repair is a really long and rather involved process. There is also a few things you should look out for when trying to rebuild your credit. No matter how desperate you are or are becoming, there are some warning things you should be aware of if you decide to look online for rebuilding your credit.

Big Time Rebates on the Least Expensive New Cars

September 20, 2012

As if you needed any more reason to choose the least expensive new cars for sale, there are some really great cash back rebates and incentives available.

Why People Buy Cars They Can Not Afford

September 03, 2012

Buying a car is one of the most important financial decisions in life. It's a real head scratcher why people buy cars they can not afford.

Find Liquidation Deals in