• Home
  • 4 Budgeting Tips for First-Time Used Car Buyers

4 Budgeting Tips for First-Time Used Car Buyers

Buying a used car will cost you almost half than that of a new car but that can certainly be no excuse for you to take some time and sit down with your budget. The initial cost may be low, however, used cars bring along a different set of expenses that new vehicles do not and all these demands a few financial foresight. And even with all these expenses, you can still manage to save a considerable amount, given that you choose the top buy here pay here near me dealership and plan your budget thoroughly.

Here are 4 invaluable budgeting tips for you.

1.Keep a 30% buffer on the overall car’s price

Let’s state it simply. Say you can swing a total of $15,000 for a used car that you intend to buy, interest on your credit amount included. Reduce this figure by 30% and look for a car in that range. So, you are basically shopping with $10,500 when you can actually afford $15,000 and this rule of thumb will always help you to stay in your budget. The buffer is where you know that you can go a bit higher without having to empty your bank balance.

2. Set some amount aside for the car’s history check

Many dealerships will tell you that they do not possess the car’s maintenance history prior to the time when the car came in their lot and this can really keep you in the dark. Here, you may have to run the VIN number of your selected car against a paid service to find out more about the car’s history. Or else, select a reputed buy here pay here Greer SC dealership. Quality vehicles are assured here and you will not face any such hassle.

3. Keep some for repairs and maintenance

It is inevitable that used cars will soon require minor repair or maintenance work a few months after you bring them home. Top dealers like the Family Auto Greer SC delay that inevitability by selling your cars in good condition, and all their cars (unless specified otherwise) come with 2 years or 36,000 miles but soon enough, your car will have to visit the shop. Set a fixed amount aside for this purpose. Avoid paying this from your monthly income as the expenses can be variable every time.

4. Save 1-2 months of credit payment somewhere

If you are to pay $2,000 monthly for the used car you are about to buy, set aside that amount or 2 months’ worth of payment so that you do not default on any date. Top buy here pay here near me dealerships report your credit payments. A default will show up in your report, as do your timely payments. So, budget right from the start and plan this parameter beforehand.