ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Used Car Financing Advice

Updated on August 8, 2011

Having an Auto Finance Strategy

Do you need to finance a used car? Don't be one of these buyers who fails to take some time to calculate the precise amount of money they should invest in a used car. Ask anyone who has taken on a car loan before - if you neglect to set up a budget, it's all too easy to find yourself in too deep. Problem is, too many people are clueless as to the rules they should be following. That's the reason for this hub - to review solid auto financing strategies, principles, and advice. This stuff is basic - but far too many people neglect to keep it mind.

Income Versus Loan Amount

There is - or at least there should be - a very strong correlation between how much money you make each money and the size of your auto loan.

Let's look at an example state: Wisconsin. Wisconsin ranks 31st as far as income. Consumers in the state bring in $38,050 a year on average. Here's the important part: you'll want to spend only 20% of this amount (your annual income) on a vehicle yearly.

But don't forget, it's important to add to the equation such things as insurance coverage and the cost of gas. To illustrate, a car insurance policy costs Wisconsin residents about $819 each and every year, or $68 per month. After subtracting an additional $100 for filling up at the pump and performing routine service, you have just $403-$466 each month for paying off your auto loan (if you were a typical Wisconsin resident).

How Much Car Can You Get?

Curious about what kind of car will fit your budget with a monthly payment of $466?

This is how much you could afford if you finance for...

  • 36 months: $16,782
  • 48 months: $22,37
  • 60 months: $27,970
  • 72 months: $33,564

But lest we forget, you will need to take into account your interest rate. Of course, you could possibly devote $33,564 during a 6 year period, but the amount you pay to the car loan company could quite possibly make up thousands of dollars of that amount. As an example, for a $28,500 car financed for 60 months at 6% interest rate, you would be required to pay over $4,500 in interest ($33,000 total). If you financed that same car for only 36 months at the same 6% interest rate, you would save about $1300 in interest over the life of the loan.

Down Payment Amounts

How Much Did You Put Down on Your Last Car?

See results


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)