Buying a Vehicle

Buying a Vehicle

Ready to hit the road? Not so fast. A vehicle can be more than just your personal transportation. Your set of wheels can improve your quality of life with more ease and convenience, but it's also a major purchase that requires regular maintenance. Because of this, you'll want to choose a vehicle that won't send your budget into overdrive. There are many routes you can take along the way to buying a vehicle. Before you begin shopping, it's helpful to look at your budget and determine how much you can afford to spend.

Remember to complete extensive research before you make your purchase. As you plan how much you'll spend on your future vehicle, there are a few expenses that you can expect beyond the vehicle itself: fuel, maintenance, and other possible costs that may include insurance, registration, and emission fees. 

Auto Insurance
Understand whether you are legally required to purchase auto insurance. If you are, research your options before purchasing coverage to secure the best deal possible. Even if you are not required to purchase auto insurance, consider doing so in order to protect yourself and your vehicle in case of an accident or theft.

Paperwork
Once you purchase a vehicle, make sure you understand what certificates, registrations, or forms you need to file to drive legally in your jurisdiction. If you’re unsure, contact your local transportation or motor vehicle authority. If applicable, be sure to plan for registration fees and other administrative costs associated with purchasing a vehicle. 

Maintenance
The best way to avoid high costs of major repairs is with general vehicle maintenance. Catching a problem early on is better than waiting to fix it, as vehicle issues can become more expensive to repair the longer they're ignored. Overall, meticulous care helps your car retain more of its value over time. You can follow these guidelines for basic vehicle maintenance: 

  • Keep a record of all your vehicle’s maintenance and repairs, including date, odometer reading, and amount paid. Having a history of consistent maintenance will be beneficial later if you decide to sell the car.
  • Avoid over-maintaining your car with extra or frequent repairs that you don't need by following the maintenance guide in your car owner's manual.
  • Find an auto repair shop that you trust. On every repair job, get a second or even third opinion. Price and repair suggestions may vary.

The following are some fairly common tenant rights that may or may not be applicable in your jurisdiction.

Fuel
Vehicles vary widely in the amount of fuel they require and what grade of fuel you need to purchase — regular, mid-grade or supreme. The amount of fuel you need to go a specific distance is called a vehicle’s "fuel economy." Fuel economy is an important factor to consider, as vehicles with poor fuel economy that require more frequent fueling can prove costlier in the long run than vehicles that can be refueled less often. Depending on where you live, you may be responsible for emissions fees and testing.  Hybrid and electric vehicles are becoming more widespread and can be a greener alternative. 

Before you begin shopping around for a car, it's helpful to narrow down your search according to how much you can afford to spend. You can use the calculator below to figure out a price range that is within your budget.

How Much Car Can You Afford?

Before shopping for a car, it's important to know your price range. Committing to a car payment that you can't afford can have a negative effect on your finances.

Select your currency*

How much do you have saved for a down payment?

$

Trade-in value of your current vehicle

$

Vehicle rebates

$

How quickly do you want to pay off your car?

How much can you afford to pay per month for a car?

$

What interest rate do you think you can qualify for on a loan?

%

Sales tax in the county in which you live

%

Results

Paying %RESULT_PAYMENT% a month for %RESULT_MONTHS% months, you should be able to afford a car that costs %RESULT_COST%.

Total cost of the car

Down payment + trade-in + rebates

Tax

Total loan amount

Disclaimer Embed this calculatorembed

Share