Try-Before-You-Buy Car Payment
You already know that car loans cost less when you can pay a portion of a vehicle’s purchase price upfront in cash. Makes sense—you borrow less when you have a down payment.
But coming up with that down payment can be a challenge. And then, once you have a car loan, that monthly payment could be a tight fit in your budget if you haven’t planned for it.
How to Get Started
Below is a tactic that will help you save for your down payment and it gives you a chance to “try on” your car payment on a trial basis, no strings attached.
Save what you expect to pay
Just save what you expect your car payment will be for several months in your down payment fund.
Build Your Down Payment
Find a Comfortable Payment
You get to audition your car payment, with the luxury of stopping that “payment” if it really is too much for your budget. If you find the payment is too high, then you can adjust the payment to something that fits your budget more comfortably.
There’s no down side. You can stop payments at any time, without penalty, because you’re making the payments to yourself.
This tryout can serve as a reality check for your plans to buy a car. You might have the pleasant experience of realizing that you can handle a car loan without too much pressure—or you might learn that you need to wait a bit longer, save a bit more, or plan to buy a less expensive car.
And don’t forget a Kellogg Community Credit Union member service representative can help you determine how much car you can afford and can even get you preapproved you for your car loan. Call 269-968-9251 or stop in today to talk about your plans.
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