Capital Auto Loan - Car Buying and Your Credit - 5 Step Budget Process

1. Review your budget
2. Get the Auto Loan Pre-Approved
3. Decide which car you want
4. Do your homework
5. Go to the car dealership

1. Review Your Budget
This is the most important step. Determine how much you can afford for a monthly payment. 
 
To determine your monthly budget, make a list and add up your fixed monthly expenses like rent, mortgage, utilities, phone bill, etc. and then subtract the total from your monthly take home or net income pay. Then estimate other expenses such as food, gas, and entertainment.  This is the amount that you have available to make a monthly auto payment.  An average net income to payment ratio is about 20 percent that can be used for a car payment.

Remember, car buying involves more than a down payment and monthly payments. Don’t forget that you will also need to budget for vehicle licensing, registration, insurance, gas and maintenance. Click here for our auto loan calculator.
 
2. Get the Auto Loan Pre-Approval
CapitalAutoLoan.com has two easy ways to apply. You can apply online with our secure application or you can call toll free to our 24/7 application center.  We have live operators standing by to assist you with your auto loan application. Then we will process the application to determine an approval amount and we set an appointment with an authorized dealer that will assist you in finding the right vehicle.  This process will save money and valuable time. Our clients have told us that this was the easiest vehicle purchase that they have ever experienced.  Apply Now!

3. Decide What Your Vehicle Needs Are
Now that you determined your comfort zone for a monthly payment, you have to find the right car, truck or SUV that meets your financial and driving needs. 
 
Our nationwide network of auto dealers will assist you in finding the right vehicle for your needs.  Determine your vehicle needs? Do you have a family? Choose an affordable, safe and reliable minivan or sedan. Do you drive a lot or use for work? Compact sedans are affordable and have great fuel economy. Do you haul or deliver items? Choose a light or heavy-duty pickup truck.  How about something sporty? Choose a sport coupe or convertible.
 
Determine your wants. Compact sedans get good gas mileage and may help your budget.  Planning on taking family road trips? Consider vans, SUV’s mid size sedans that have good gas mileage, plenty of cup holders and room you need. 
 
Narrow down your choices to a couple that will work for you and then do some car research.

4. Car Research
New car incentives include rebates, interest rate specials and extended warranties.  The used car market also offers late model, low mileage vehicles that have been depreciated.  Certified pre-owned vehicles are also a great choice, they have received a vehicle inspection and the warranty has been extended.  Researching cars online, newspapers and various magazines will give you a great idea of the availability and current pricing in your area.

5. Now Visit the Car Dealership
This is where your research and loan pre-approval will pay off.  Remember car dealers are professional negotiators and they do it everyday.  Following these five steps will help you to find the right car, truck or SUV at a price and payment that fits your budget.  Don't be intimidated by the car buying process, relax, get comfortable and remember you hold the cards. You have the right and ability to determine if this is the best deal for you.