How to Calculate Your Car Payment Budget

Your next vehicle should be good-looking, reliable, fun, and let's not forget, affordable. Luckily, Go Auto Outlet has Edmonton, Red Deer, and Leduc car lots overflowing with affordable vehicles. To help decide which price range is best for you, read about budgeting, Credsii, and vehicle financing calculators in this post.

Determine Income and Expenses

First things first, how much money do you have coming in on an ongoing basis? Cars are expensive to use and maintain, especially on Alberta roads, so you'll want to figure out what portion of your monthly income you're willing to spend. Pull out last month's bank statement and pay stubs. Do you finish the month a bigger account balance than when you started? If not, perhaps hold off on your purchase until your income goes up or cost come down. If you do have some expendable income at the end of the month, how much do you want to sacrifice for a new car? Remember to base your income off of your take-home amount, not gross pay.

Wooden Saw-Saw

Consider Costs

A vehicle will be among the most expensive things you'll ever purchase, and many of the expenses are hidden. The larger your down payment is, the less your true cost of purchase will be. A large down payment can often unlock better financing rates and lower monthly payments, but not everyone has access to that amount of money.

The upfront costs are important to consider, but maintenance costs may double the price of your vehicle over your ownership term. So think long and hard about what king of vehicle you want to drive. Do you prefer luxurious German engineering with long lines and soft but firm leather. Or will a high-mileage japanese compact do the job for your Leduc to Edmonton commute? Whatever you decide, consider the varying reliability and maintenance costs of each brand.

Why Credsii?

Credsii Credit Report

If you plan on borrowing to pay for the vehicle, you'll need to calculate your financing. Credsii is a great tool that is free to use, and provides a credit score without damaging your rating.

Your credit rating is a numerical value that reflects your credibility as a lender. The higher your score is, the more lenders will trust you to pay back the borrowed amount, on time, with interest. Credsii is very easy to use, just enter your details, and you'll receive an instant result.

Auto Loan Calculator

Your financing rate will be heavily determined by your credit score. The more trusted you are by lenders, the lower your financing rate will be. With your credit score in hand, you may now assess your cost of borrowing with a financing calculator.

Credsii offers a built-in auto loan calculator that compares your credit rating with current financing rates to help estimate your monthly payments. You can also use the Go Auto Outlet financing calculator here to input custom rates.

A woman embracing her brand new car

Now that you've determined your budget, vehicle selection, Credsii credit rating, and used a financing calculator to determine your monthly payments, it's time to buy! You can view our inventory to find a great used Go Auto Outlet vehicle, or see one in person at any of our Edmonton, Red Deer, or Leduc locations.

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