How to make a budget

Nov 20, 2020

Creating a budget before buying a car

Purchasing a car is one of the biggest financial decisions that many people face. There are some who may go back and forth on whether they should buy a new or used vehicle, but for many buying a used vehicle is what makes the most financial sense. When you’re trying to decide between buying a new or used vehicle, it is important to know what you are able to spend on it, and the best way to do that is by making a budget.

Budgeting can be useful in many aspects of your life, not just when you’re trying to buy a car. However, if you’ve been putting off making a budget, taking time to assess your finances before making a big purchase, like a vehicle, can be an excellent step to keeping you out of financial distress.

What should be included in a budget?

When you’re putting together a budget, you should determine what reoccurring expenses you have, like loan payments, utility bills, and rent or mortgage payments. Other aspects to consider are grocery purchases and if you want to put some money aside for fun or other incidentals.

From there, you can decide how much of your income you would be comfortable spending on a car every month. You’ll also need to consider other expenses that the vehicle you are purchasing will have, like registration fees, paying for parking, car insurance, gasoline, and still having enough for any maintenance costs that may arise.

It is important to know how much you can pay every month for a vehicle before starting your search. Once you’ve determined what your budget is, visit one of the five OkCarz locations in Florida to find information on how to finance a vehicle. OkCarz makes it easy to apply for financing online, and find the used vehicle that is the right fit for you.