Guidelines for Calculating an Affordable Car Payment

Affordable Car Payment pic
Affordable Car Payment
Image: bankrate.com

At D&M Auto Leasing, experienced professionals connect shoppers in Dallas, Houston, Fort Worth, Grand Prairie, and other Texas communities with cars to suit their needs. The team at D&M Leasing provides quotes that customers can use to determine what type of car they are able to afford.

As a basic rule of thumb, car shoppers should plan to spend no more than 10 to 20 percent of their take-home pay each month, depending on the individual. Experts note that this is a rough guideline that buyers can bypass with some savvy budgeting in other areas, though it can be a good rule when calculating a lease or loan payment.

To determine more specifically how much a shopper can afford, he or she must also consider insurance costs. For both the lessee and the buyer using financing, there may be specific coverage requirements that can affect monthly insurance payments. Calculating insurance may also inspire the shopper to determine such factors as excise tax and gas costs based on the new car’s mileage rating, both of which can differ from one car to another.

Finally, the shopper needs to determine what features are needs and which are wants. Those who have particular cars in mind may choose to turn down options that are less important so that they can afford those makes or models.

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