Can You Afford a Top-of-the-Line Model?

When it comes to financing a car, many shoppers just "wing it." They have a general sense of their socioeconomic status, and what car that means they can get.

If you're a 20-something just out of college, paying off student debt with a part-time job, you might just assume you're looking for the cheapest used car you can find. If you're on a promising career track in the tech industry, you might figure you can buy an expensive new Fusion Sport with all the trimmings.

But are your assumptions right?

There's only one way to know what car you truly can afford, and that's to make a budget.

When making a budget, you'll want to add up your monthly expenses, grouping together "must pay" items, like rent, utilities, and loans, and "optional" expenses, like movie tickets and mall sprees. Subtract those from your income to figure out what you have left to pay for car insurance, gasoline, maintenance, inspections, and the auto loan payments.

Talk to our finance specialists at Summit Ford for more help!

Categories: Finance

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