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Best Auto Loans

  1. Carchex
  2. Lendingtree
  3. Lendingclub
  4. My Auto Loan
  5. Cars Direct
  6. Road Loans
  7. Automotive
  8. Auto Credit Express
  9. Onemain Financial
  10. Iloan
  11. Usaa
  12. Instant Car Loan
  13. Web 2 Carz

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How Much Car Can You Afford in 2019?

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How Much Car Can You Afford?

It finally happened. Your old car - the one you had decided you would keep until it literally fell apart - has finally bit the dust. Or maybe you've decided the time is right to upgrade to an SUV to help get you through those rough winters.

No matter what your reasons, if you've found yourself in the market for a new or used vehicle, then one of the first steps in the process is to decide how much vehicle you can afford.

There are financial rules about how to know if you can afford many things. Rent on a place to live should be no more than one week's paycheck. A monthly mortgage payment should be no more than 20 percent of your salary after taxes.

A similar rule applies to knowing just how much you can afford when it comes to purchasing a new or used vehicle. Financial experts have suggested that no more than 20 percent of your monthly income after taxes be spent on an auto payment. That includes factoring in the purchase price, any down payment you are able to make, and the interest rate and term of the loan.

Estimating your monthly payments, based on the purchase price, down payment and financing options, also is important. If interest rates are low, it allows for buyers to get more for their money. However, if you have less than stellar credit, it will affect the kind of interest rate you receive on any loan. If you are subject to a higher interest rate, it would be wise to seek out a less-expensive vehicle to offset the larger interest amount you'll be paying.

One of the best ways to lower your monthly payment and get a lower interest rate is to put a significant chunk of money down on the vehicle you wish to purchase. If it is in your budget, try to put down at least 10 percent of the vehicle's purchase price in the form of a down payment. The higher the down payment is, the lower the monthly payment will be, which can increase your ability to pay off the loan sooner.

Another very important factor to consider is the maintenance costs for the vehicle you will be purchasing. Most brand new vehicles come equipped with three year or 36,000 mile warranties at a minimum. A few car dealers will offer warranties on the power train that can extend to 60,000 miles or more. These warranties only cover the cost of repair work, and not the annual maintenance that is a part of owning a vehicle. Annual maintenance items include oil changes, tire rotations, replacing tires and flushing/filling various fluids in your vehicle. The average vehicle owner spends 1.5 percent of their annual income on vehicle maintenance each year. Be sure to factor that in when determining if a particular model is affordable for you.

Last but not least are the costs to fuel and insure your vehicle. With gas prices currently at $4 or more a gallon in the U.S., many consumers are purchasing smaller, more fuel-efficient vehicles. According to information collected by AAA, the average cost of fueling a small sedan annually is $6,735. SUVs and large sedans were the least fuel efficient, costing between $8,000 and $11,000 annually to fuel.

Vehicle insurance also is an important factor in the affordability of any vehicle. Newer models always cost more to insure than used vehicles. Insurance rates also will depend on the number of miles you anticipate driving annually, and whether you drive in a high-risk area for automobile accidents.

Once you have factored in all of these items, you will have a decent idea of just how much car you can afford.

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Auditor General Edward Ouko when he appeared before the Senate County Public and Investment Committee at County Hall, Nairobi on Wednesday 24/04/19. [Boniface Okendo,Standard] A host of county ...

Published:  Sun, 19 May 2019 14:00:00 GMT

Jury convicts Chesapeake man of auto loan fraud scheme

NORFOLK, Va. - A federal jury convicted a Chesapeake man on May 16 for charges of credit union fraudand aggravated identity theft. Court records and evidence presented at trial stated that ...

Published:  Sun, 19 May 2019 16:49:00 GMT

"They Were Conned': How Reckless Loans Devastated a Generation of Taxi Drivers

A Pakistani immigrant who thought he was just buying a car ended up with a $780,000 medallion loan that left him unable to pay rent. A Bangladeshi immigrant said he was told to lie about his income on ...

Published:  Sun, 19 May 2019 19:58:00 GMT

US delaying car tariffs a 'wise decision,' EU finance chiefs say

Amazon is leading a $575 million funding round for Deliveroo, taking the total the food delivery firm has raised to date up to $1.53 billion. Huawei says that it has been preparing for the "insane" ...

Published:  Fri, 17 May 2019 05:01:00 GMT

U.S. News Announces 2019's Best Memorial Day Car Deals

truck or SUV - especially if you negotiate hard on the price of the new car and then apply these deals." 2019 Kia Sorento 0% financing for 66 months plus $2,000 bonus cash 2019 Chrysler Pacifica 0% ...

Published:  Sun, 19 May 2019 21:04:00 GMT

First Community Credit Union president talks growth, car loans and why Walmart matters

The largest credit union in St. Louis often finds itself having to explain to people what it is. First Community Credit Union had $2.2 billion in deposits and more than 300,000 members at the end of ...

Published:  Fri, 17 May 2019 03:00:00 GMT

Coalition launches initiative to cap auto title loan costs

PHOENIX (AP) - A newly formed coalition that includes faith, consumer and civil rights groups has filed an initiative that would cap the interest charged on auto title loans. The group known as ...

Published:  Thu, 16 May 2019 15:37:00 GMT

Chesapeake man convicted of auto loan fraud

NORFOLK, Va. - A federal jury on Thursday convicted a Chesapeake man on charges of credit union fraud and aggravated identity theft. Prosecutors said 25-year-old Adante Leshaun Dupree took part in a ...

Published:  Thu, 16 May 2019 17:44:00 GMT

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