The best way to get the most enjoyment out of your used car is to set a reasonable budget. One of the mistakes that can occur when buying a used car is getting too caught up in the excitement of the deal. Don't let that happen to you. Instead, plan accordingly with a budget that you already know works and stick to it!

Down Payment

Typically, lenders prefer that borrowers put a minimum of 10 percent down. Remember, the lender is taking more of the risk. Establish a base amount of money for how much you can afford to put down on a used car before entering the dealership. Committing to more than you can afford, especially when you're excited, could be the wrong decision that becomes a problem later.

Monthly Payment

Deciding on a monthly payment is fairly easy when you use the standard lending calculation. Your monthly payment should not exceed 15 percent of your gross income or 20 percent of your take-home pay. Although there are always exceptions to this general rule, use it as a guide for establishing a monthly payment. And just because you may have money remaining, that doesn't mean you should extend your monthly payment to the maximum.

Maintenance Budget

Unexpected repairs may be needed as well as other costs of ownership. Be sure that you include a budget for any out-of-pocket expenses. Because you already know what is expected ahead of time, use that information to calculate the amount needed for your maintenance budget and then estimate any other costs, such as brake repairs, new tires, or a new battery.

Visit J & S Autohaus III Today!

If you would like to learn more about this topic, please reach out to J & S Autohaus III. And of course, if you're ready to take a test drive of one of our used cars, please stop by our dealership! Contact us to learn more about our new and used inventories.