The first question you should be asking yourself is..
“How much should you spend??”
Here are a few factors that you should account for when purchasing a used vehicle:
- Looking up the vehicle’s value on Kelly Blue Book, a trustworthy source of information for used car values
- How much you would need for a down payment if you are taking a loan out on the vehicle
- Consumers should aim to put down about 10% of the vehicle’s purchasing price
- To calculate the monthly payments for an auto loan, this website provided by NerdWallet gives insightful information towards how much you should be paying per month
- Consumers should aim to put down about 10% of the vehicle’s purchasing price
- Total cost of ownership
- This should NOT be more than 20% of your monthly take-home pay
- Insurance
- Future repairs
- Gas
- This should NOT be more than 20% of your monthly take-home pay