Finding the Right Vehicle for You
Now it's time to choose the car or truck that works best for you. The first thing to consider is your budget. What can you afford?First, sit down and seriously consider your income and your monthly expenses. Look at your net income, which is your take-home pay after taxes. Also consider additional sources of income. Then take a look at your expenses.
Groceries, medical bills, credit card payments, gas/electric, cell phone, home phone, internet access, garbage ... those are some of the payments you need to consider. What many people forget about are the expenses that pop up once or twice a year, but those can add up. Do you wear glasses or contacts? Take what you pay for that each year and divide by 12 to find out what you should set aside each month for glasses or contacts. Are you planning a vacation? Make sure you account for travel, entertainment, and special events as well. Then you'll have a good idea of what you can afford each month on a car payment.