Buying a used car is an exciting decision, and there is a lot that goes into it—including budgeting for a car. If you aren’t sure how to budget for a vehicle, don’t worry! Watermark Toyota of Madisonville is here to help.
We’ve put this page together to help drivers near Madisonville, Owensboro, and Henderson, KY, learn how to budget for a used car.
A good first step when determining a budget is to calculate all your monthly expenses. Some monthly expenses might include rent or mortgage, utilities such as internet/cable, phone bill, and other monthly costs, like student loans.
After calculating your existing payments, you can better determine how much you can put towards a vehicle. Make sure to save room for the unexpected or a fun excursion here and there!
While putting your budget together, it is also important to determine if you’re planning to pay everything at once or make monthly payments on your new-to-you car. This will help you determine a good time to start the car-buying process.
A tip: In addition to your budget spreadsheet, if you’re looking for a more concrete way to set aside your vehicle fund, you could open a savings account and transfer money into it each month.
Vehicles come with additional expenses aside from monthly payments. The actual cost of a car each month will include things like monthly payments, insurance, gas fees, and potential maintenance needs. Some of these are hard to predict—gas prices change, and you may not need monthly maintenance.
When you buy a vehicle, you’ll also need to pay for registration and title fees, as well as a potential warranty. Keep these things in mind when saving for your car. Set aside some money from your vehicle savings for these expenses. You can even keep this up monthly for gas and insurance after you’ve purchased your car.
Our finance department is here to help you figure out your monthly expenses, apply for financing, and more. You can use the online tools we have or come talk with a finance team member in person.
Do you have a vehicle in mind but aren’t sure what the monthly payments might come to? Use our payment calculator tool.
If you have a vehicle you’re thinking of trading in, this can help with your vehicle’s cost. To find out what your car is worth, use our Value Your Trade-In tool. We will give you an estimate of what your vehicle is worth. You can then trade it in to us and use that money toward your down payment.
You can also apply for financing online. When you apply for financing, a finance team member can review your application before you come in. This will save you time at the dealership, as they can have the information about your financial options at the ready.
When you’re ready to begin shopping for a used car, swing by Watermark Toyota of Madisonville. We are excited to work with drivers near Madisonville, Owensboro, and Henderson, KY.
If you have questions about the financial process, our finance team is here to help out. Get started looking for your next vehicle with us today!