Transcript Once you know your budget

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.
Let’s use an example budget for now.
What I spent a month
And these are your
monthly spending
habits.
Cell: $50
Food/drink at home: $300
Restaurants/Bars: $200
Clothing: $100
Necessities/miscellaneous:$100
$750
$1308.99- $750 = $557.99
Let’s imagine that your Net
Pay –how much money you
take home after taxes—is
this much.
Car payment:
Gas:
Maintenance/Repairs:
Insurance:
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.
Total must be less than $1,308.99
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.
And how much can you afford
to pay at the pump?
Like, how many passengers
do you need it to carry?
How much will it cost to
insure? How much does
maintenance and repairs cost?
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
This car is within
your budget!
Though it’s a little
expensive to
insure, it’s fairly
fuel efficient!
Over budget
Honda Insight
Limit
$557.99
Within budget
This car is just
within budget! You
got it for a great
deal, but it’s
expensive to fill up
with gas and
repair.
Chevrolet
Camaro
Over budget
Limit
$557.99
Within budget
This car is not
within your
budget! It costs a
great deal to
maintain and
repair.
Toyota Tacoma
Over budget
Limit
$557.99
Within budget
After reviewing the monthly costs – which car is the best bang for
your buck?
Click on the car you would purchase.
Pros: Great for hauling things
Cons: high insurance
And gas guzzler
Monthly total: $712.43
Pros: cool looking car
Great deal - $7000
Cons: high insurance
Fuel can be expensive
Monthly total: $555.19
Pros: seats 5
Good fuel economy
Cons: somewhat high insurance
Monthly total: $440.41
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 5
Good 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 insurance
Fuel can be expensive
Monthly 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 insurance
And gas guzzler
Monthly total: $712.43
Thank you for learning with us!
You may now exit.
To find out more about any of the topics discussed in
this module - contact your base’s Personal Financial
Management Specialists.
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?
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.
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.