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How Much to Spend on a Car?

Having a car is often essential in today's world. And it can be extremely stressful if an unexpected event comes along that puts you in a position where you need a new vehicle fast.

Of course, for some, this might result in a reorganization of finances. You want to be sure that you can still afford your next car without cutting too heavily into any emergency fund or savings you may have. So, what can you do to ensure that you don't break the bank?

Buying a Car When Your Credit Is Less Than Perfect

How Much to Spend on a Car

Being stuck in a less than favourable financial situation is frustrating, especially when you need a car. Canada Auto Loan understands that time is of the essence, but we also know that it is important to not get tied to an auto loan that will result in further damage to your income. Financial experts say that you shouldn't spend more that 15 to 18 percent of your gross monthly income on a vehicle, a figure that includes insurance and maintenance costs. Here are some suggestions for you:

If you need something new, don't go overboard on the extras. Buyers can easily overextend their finances by purchasing cars with additional luxury items that they really don't need.

Consider a used vehicle. Not all used cars are junkers. You can find some great pre-owned options that are only a few years behind the current model year. When you make a purchase of a quality used car, truck or SUV, you are not only getting more for your money, but also reducing the amount of depreciation in value that you will encounter compared with that of a new car.

Make the Best Choice for You

Our team here at Canada Auto Loan has helped millions throughout Canada find the car dealers near them that had the car with affordable financing they needed. Get started now by completing the fast, secure and obligation-free online application. From there, we will connect you with the dealer that can work with your income and credit situation. Get back on the road today!