​​Understanding How Much Car You Can Afford​ 

For many people, buying a car is the most money they’ll ever spend on anything, and our modern culture in most states is built around car ownership. And given how expensive other items are, it is important to understand how much you can spend on your next Honda.  

Don’t Go in Without Any Information 

While you can certainly talk to the qualified professionals at Michael Hohl Honda and go through the process of buying a new or used car without knowing this information up front, it is easier for you, the salesperson, and the finance department if you have a decent understanding of how much vehicle you can afford. If you want a $56,000 Honda Pilot Black Edition but can only afford a $35,000 Accord SE, you’re getting your hopes up and wasting your time.  

Know What You Make 

To understand what you can afford, you first need to know what you make. What is your average annual salary or pay? According to U.S. News and World Report, the median household income in Carson City, Nevada, is $74,805. So, let’s round up to $75,000 and go from there.  

A Roundabout Figure 

Making $75,000 per year equals $6,250 each month before your federal taxes are taken out. These figures can only be an estimate, though, as each individual’s living circumstances will be different, which will change how much money you should spend on a vehicle.  

Knowing Your Credit Score 

Next, you will want to know your credit score. To do this, you can use free websites (be careful about putting your Social Security number into just any site), or you can go straight to the sources. There are three credit bureaus: Equifax, Experian, and TransUnion. All three have free ways to get your credit scores on their sites. Most dealers will use your FICO score, which is a mix of your payment history, credit history, debt, and a few other factors. While there are ways to get a car loan with credit in the 550-669 range, it’s best if your credit is 670 and above.  

Calculate Your Monthly Automotive Expenses 

Now that you know your credit score, it’s time to put all that together to figure out what you can reliably pay for a car. Experts say that a buyer shouldn’t spend more than 15% of their monthly take-home pay -what you have after taxes- on your vehicle. This includes your monthly payment, insurance, gas, and maintenance. If you are making $6,250 per month, let’s say after taxes, healthcare, etc., you’re taking home $5,000. Fifteen percent of that is $750.  

Know Your Service Schedule and Cost 

Newer Honda vehicles have a service interval of 7,500 miles, which means an oil change roughly every 6-7 months. During that service, you should be getting an oil change, tire rotation, and an inspection of brakes, belts, and fluids. To know the costs for that service, you can contact the service department at Michael Hohl Honda.  

Find A Car Affordability Calculator 

To find out how much car you can afford, go online and search for “car affordability calculator,” which will produce multiple websites, including banks, with calculators to help you gather all the relevant information to get an accurate figure.  

Michael Hohl Honda Will Take Care of You 

The knowledgeable sales team at Michael Hohl Honda will never make you feel pressured to buy. Instead, they will help answer your questions and work with you to get the best possible price.  

Why Choose Michael Hohl Honda   

Once you understand how much vehicle you can afford, at Michael Hohl Honda, we will offer you the absolute best experience possible. Whether you are looking for a new or used car, our sales team and finance department will work with you to secure the best possible price. When it comes to servicing your vehicle, our service center will treat your car as if it were one of their own. And our parts center will take care of all your Subaru accessory needs.    

We look forward to working with you.