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The Car
Welcome!
So you’re looking to pick out the right car for you?
The number one thing you must ask yourself when searching for your
next ride is “is it in my price range?”
Once you know your budget, we can start looking for your car.
Click to continue
There are plenty of cars out there – new and used, with all different kinds of features – but which of them is actually in your reach and has all the options
you need?
Once you know your budget –how much you can afford to spend on a vehicle, including loan payment, gas, and insurance –you can determine which cars and
what trim level and options are in your reach and which ones aren’t.
If you need help setting up your budget, contact your base’s Personal Finance Management Specialists.
What I spent a month
Cell: $50Food/drink at home: $300Restaurants/Bars: $200Clothing: $100Necessities/miscellaneous:$100
$750
$1308.99- $750 = $557.99
Let’s use an example budget for now.
Let’s imagine that your Net Pay –how much money you take
home after taxes—is this much.
And these are your monthly spending habits.
Car payment: Gas: Maintenance/Repairs:Insurance:
Total must be less than $1,308.99
This gives you a total of $557.99 to spend on the following items for your
car. But these will vary depending on what
car you get.
Your biggest concern is that your total spending must be
under your Net Pay.
Now that you know how much you can spend , you can determine your basic needs for a car.
Like, how many passengers do you need it to carry?
How much will it cost to insure? How much does
maintenance and repairs cost?
And how much can you afford to pay at the pump?
Over budget
Limit$557.99
Within budget
Let’s see if these used cars fit your needs and your monthly budget to pay it off in 5 years.Click on a car to put it on the scale.
Over budget
Limit$557.99
Within budget
Honda Insight
$440.41
This car is within your budget!
Though it’s a little expensive to insure,
it’s fairly fuel efficient!
Over budget
Within budget
Limit$557.99
Chevrolet Camaro
$555.19
This car is just within budget! You
got it for a great deal, but it’s
expensive to fill up with gas and repair.
Over budget
Within budget
Limit$557.99
Toyota Tacoma
$712.43
This car is not within your budget! It costs a great deal
to maintain and repair.
After reviewing the monthly costs – which car is the best bang for your buck?
Click on the car you would purchase.
Pros: seats 5Good fuel economy
Cons: somewhat high insuranceMonthly total: $440.41
Pros: cool looking car Great deal - $7000
Cons: high insuranceFuel can be expensiveMonthly total: $555.19
Pros: Great for hauling thingsCons: high insurance
And gas guzzlerMonthly total: $712.43
Great choice! The Honda Insight gives you great fuel economy and still remain under your limit, so you can spend that money on
other things!
Pros: seats 5Good fuel economy
Cons: somewhat high insurance
Monthly total: $440.41
Good choice – this car is a great deal and you come out just under budget!
Pros: cool looking car Great deal - $7000
Cons: high insuranceFuel can be expensiveMonthly total: $555.19
This car is way over you’re budget but might be giving you the features you need. In order to be able to buy this car, you’ll have to rearrange your budget, put money
you would use on other things to your car payments .
Pros: Great for hauling things
Cons: high insuranceAnd gas guzzler
Monthly total: $712.43
To find out more about any of the topics discussed in this module - contact your base’s Personal Financial
Management Specialists.
Thank you for learning with us!You may now exit.
There are plenty of cars out there – new and used, with all different kinds of features – but which of them is actually in your reach and has all the options you
need?
Once you know your budget –how much you can afford to spend on a vehicle, including loan payment, gas, and insurance –you can determine which cars and
what trim level and options are in your reach and which ones aren’t.
If you need help setting up your budget, contact your base’s Personal Finance Management Specialists.
Trim level is a package of different features for a
make and model of a car. For example, a Honda Civic EX-L is a higher trim level
than the Honda Civic LX, and therefore comes with more
features.