Car Buying Budget

Maximizing Your Success When Buying Your Next Vehicle: Budgeting for the Expense

Are you from the Cuyahoga Falls, OH area and looking to purchase your next vehicle, but are unsure what you can afford? Do you have concerns as to what to do when it comes to factoring how much money you should use as a down payment towards your next automobile? Ron Marhofer Credit Solutions, located at 1601 Home Avenue in Akron, OH, wants customers to be successful in finding, not only the right vehicle for their driving needs, but the right one for their budgetary needs. By being successful in finding the right automobile for your budget, you will be able to meet your other financial goals and put yourself in the driver's seat of your own financial future.

Step One: Know Your Budget

The first thing our Hudson, OH customers will want to do when they start thinking about their next vehicle is determine how much they can afford. The issues of people falling behind with their monthly payment is often the result of someone purchasing a vehicle that they can’t afford. There is an easy guideline to use when trying to determine how much you can afford. The 20/4/10 guideline is used by many financial experts to give consumers an idea on which vehicles they should be considering by giving them an idea of a price range.

Our New Franklin, OH customers should expect to put down 20 percent of the vehicle’s purchase price in trade equity or cash. If possible, they should not finance any longer than four years and their vehicle payment, which includes interest, principal, and insurance, should not be more than 10 percent of your gross income. This 20/4/10 guideline is not a steadfast rule, but one that can help ensure the success of paying back your automotive loan.

Step Two: Don’t Forget the Additional Costs of Vehicle Ownership

One thing many customers forget when they budget the cost of their next vehicle is the additional expenses that come with owning a vehicle. Customers can save themselves a lot of money by shopping for insurance and getting quotes on the vehicle they are considering before they make the purchase. There are several factors that go into determining the cost of your insurance, but one of them is the type of vehicle you choose. If the insurance company’s data shows that the vehicle you are purchasing gets into more accidents, there is a strong probability that your insurance cost may increase over what you are currently paying and that could seriously impact your budget.

Another additional costs that some customers forget are fuel expenses. If you have been driving a fuel-efficient sedan for the past five years and now you are considering a truck, your fuel expenses will increase. This will impact your budget as will the cost of any routine maintenance and repair. If you are thinking about going with a luxury vehicle, some of the routine maintenance may be more expensive than if you went with a comparable vehicle in the non-luxury segment.

Contact

Ron Marhofer Credit Solutions

1601 Home Ave
Directions Akron, OH 44310

  • Sales: (234) 260-4246

Hours

  • Monday 9:00am-7:00pm
  • Tuesday 9:00am-6:00pm
  • Wednesday 9:00am-6:00pm
  • Thursday 9:00am-7:00pm
  • Friday 9:00am-6:00pm
  • Saturday 9:00am-5:00pm
  • Sunday Closed

We Are Here to Help

The vehicle purchasing process can be a confusing one, filled with stress and anxiety. The finance center at Ron Marhofer Credit Solutions, in Akron, OH, is here to answer any questions and to guide you through the process. We have helped many different people in a variety of financial situations obtain financing and would love the opportunity to assist you.

Complete our credit application today and a member of our staff will examine your credit report and contact you about your goals and options.

Contact Us!