It’s important to know just how much you can afford so you won’t be saddled with an expensive loan.

When determining how much car you can afford, the following are some of the factors to keep in mind:

1.Costs of running the vehicle

Bigger cars are typically more expensive to run as they guzzle up more fuel. Unless you have a need for a bigger car, it might be cheaper to go with a smaller, more efficient car model. A hatchback or a sedan might be a less expensive choice for everyday traveling.

2.Maintenance

A bigger car may be costlier to maintain. It uses up more resources to clean and wash. Getting it professionally detailed may also cost more. Annual maintenance and replacement of parts may also be more expensive.

3.Down payment

Consider how much down payment is required. Bigger cars are more expensive and will require a bigger down payment.

4.Insurance

Bigger and more expensive cars may also come with higher insurance premiums. Consider what cars may require insurance rates that are within your budget.

When deciding how much car you can afford with your budget, consider the 20/4/10 rule recommended by experts. A 20% downpayment and a 4-year loan term should not be more than 10% of the monthly pay of the buyer.

Alternatively, buyers can opt for used cars in Kamloops. There are many benefits to choosing used cars in Kamloops, aside from the lower upfront and long-term costs.

Used cars broaden your options on car brands and models. When buying a new car on a limited budget, you might only have a few options. Buying used will give you more buying power and might help you afford car models with the features and size you want.

The value of used cars depreciates fast. The moment you drive away from the dealership, it will depreciate in value significantly. That will not be a problem when buying used cars.

However, many people might shy away from purchasing used cars in Kamloops because they are thinking about repairs and maintenance. By doing your due diligence and checking the car thoroughly, you can find a reliable used car. Research on the reliability of the car brand and model before purchasing.

Buy from reputable car dealers such as Bannister Hyundai Kamloops to find the right used car that works for your needs.