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Housing expenses such as mortgages or rent and insurance are some of the biggest monthly payments that we experience. Besides all the living costs, we also have to count on transportation expenses and even more when you’re purchasing, financing, or owning a car. 

 

If you plan to get an auto loan, the real question is, how much can you afford per month? Find out how much you can afford before going to the dealership and being manipulated into making the purchase.

 

How much of my monthly income should go towards my car? 

The answer will vary depending on your income. The Government of Canada recommends that all your monthly expenses should not be more than 40% of your monthly income. 

 

Read Related Post: How Much Of My Monthly Income Should Go Towards My Mortgage Or Rent?

 

Tips when buying a car

When buying a car, you want to have a good downpayment saved up for it, preferably 20% or over. You’re borrowing less and you’re paying less also. 

When buying a car try to limit the amount of time that is going to take you to pay it off to four years or less. Take into consideration how long you want to have that car. Some dealerships have five or even six and seven-year terms. 

Pay your monthly fee plus some extra cash in order to speed up the paying off process.

 

Things to keep in mind when having a car: 

 

  • Gas
  • Maintenance  
  • Repairs 
  • Parking 
  • Highway Toll Routes

 

When owning a car, unexpected costs for repairs or parking tickets will also come your way. It is a good idea to have emergency savings account if anything breaks down and you require those funds right away. Keep in mind that without a car you may not be able to get to your job and therefore it is important that the maintenance or repair costs are covered right away.

 

Unsure if you can afford a car? 

There are a few factors that affect a car purchase: 

Your Credit Score: The dealership you choose to purchase your car from will take a look at your credit. That is the deciding factor for them to approve your loan or not. The better the credit score, the less time you have to wait to get approved, and the better your interest rate will be.

Debt: Buying a car means taking more debt on your shoulders unless fully purchased all at once. If you already have a heavy amount of debt and are behind on bills, it is not a good idea to take on more debt. 

 

Willing to get help and get your dream car? 

A Financial Advisor can help you get back on the right track, help pay off your debt, rebuild your credit score as well as help you invest your money into the right savings account for you. We can help make that dream car a reality. 

 

If interested in learning more,
Don’t hesitate to reach out to us today.
CFS wealth 1-888-451-6133
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Confidently invest in your future with CFS Wealth Management. We bring together a team of experts professionals, who each provide a unique and proven approach. At CFS Wealth Management Inc. we proudly offer proven financial strategies to create, build, protect and transfer your wealth.

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Head Office
114 Rumsey Rd.,
Maple Ontario
L6A0W7
Monday-Friday: 9AM-5PM
Tel: 1.888.451.6133
Email: [email protected]
Questions?
Contact us today and begin the process of unlocking your former employer pension plan today!
About Us

Confidently invest in your future with CFS Wealth Management. We bring together a team of experts professionals, who each provide a unique and proven approach. At CFS Wealth Management Inc. we proudly offer proven financial strategies to create, build, protect and transfer your wealth.

Head Office
114 Rumsey Rd.,
Maple Ontario
L6A0W7

Secondary
9980 Dufferin Ave
Box 20011
Maple ON
L6A4M4

Tel: 1.888.451.6133
Fax: 1.866.410.2675
Email: [email protected]

Mon-Fri: 8AM - 6PM

Questions?
Contact us today and begin the process of unlocking your former employer pension plan today!
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