"Car shopping without a plan is like grocery shopping hungry—you’ll overspend, make bad choices, and forget the milk." - Chase Jordan

How to Set a Realistic Car Buying Budget (Without Regret Later)

💰 Start With Your Monthly Reality

Most people ask, “How much car can I afford?”

But the real question is, “How much car payment can I live with without stressing out every month?”

Here’s how to do the math in a way that protects your wallet and your future self.

📊 Step-by-Step: Building Your Smart Budget

Step 1: Know Your Monthly Net Income

What’s left after taxes, insurance, and retirement contributions? That’s your take-home pay.

📌 Let’s say it’s $4,500/month.

Step 2: Use the 15% Rule

Experts say your total car costs (payment, gas, insurance, maintenance) should be no more than 15% of your monthly income.

💡 So if you take home $4,500:

• 15% = $675 max for everything, not just the loan.

• That means your payment ideally stays under $400–$500 depending on other car expenses.

Step 3: Don’t Forget These Extra Costs

• 📄 Taxes & fees (often $1,000–$2,500)

• 🚗 Insurance (call for quotes before buying)

• 🧰 Maintenance (used cars need more!)

• ⛽️ Gas or charging costs

• 🅿️ Registration and plate renewal

Step 4: Check Your Credit

The better your credit, the lower your interest rate—and the more car you can afford.

• Excellent (720+): low APR, big savings

• Fair (600–700): decent rate

• Poor (<600): high APR, larger down payment required

Use apps like Credit Karma or Experian to estimate where you stand.

Step 5: Decide On Loan vs Lease

• Leasing = lower payment but no ownership

• Financing = more upfront, but you build equity

Either way, set a number you’re truly comfortable with. Don’t stretch it “just because the car is cool.”

⚡️ Common Budget Mistakes to Avoid

• 💳 Only thinking about the monthly payment

• Forgetting sales tax, title, and registration

• Skipping the insurance quote (especially for teens or sports cars!)

• Financing for 84+ months just to get the payment down

• Ignoring future repair costs on high-mileage cars

🧠 Pro Tips from Deal Guard

At Deal Guard, North America’s most trusted car buying concierge, we:

• Help you set a realistic target before we search

• Include all expenses in your forecast

• Avoid showing you cars you can’t comfortably afford

• Show you how loan structure, rate, and term affect total cost

You’ll get clarity, not confusion—and you’ll stick to your budget with confidence.

👉 Let’s build your budget together

👋 From Chase:

🧮 Numbers don’t have to be scary.

When you’ve got someone in your corner (like us), budgeting for a car becomes easy, clear, and empowering.

We’ll help you shop smart, stick to your goals, and avoid buyer’s remorse.

Check out GETDEALGUARD.COM or head to FUNNEWCAR.COM to learn how we do car buying differently.

Catch you soon,
Chase Jordan