To lower the impact of a car payment on your budget, consider one simple rule. Make your new car get 10 miles per gallon more than your old one. It's like getting 10 to 20 percent of your car payment for free, just in gas savings.
The average driver, at 12,000 miles a year, will buy 600 gallons of gasoline at 20 mpg, but will buy only 400 gallons at 30 mpg. With gas averaging about $2.70 a gallon, that's a $540 savings, or about $45 per month.
US car payments average about $380 a month, so that extra $45 would wind up covering 12 percent of your total payment right now. The percentage goes up if your payment is lower, and the extra help really goes up if gas goes back to $4 a gallon.
Now obviously this won't apply to everybody -- especially folks who need a trucks for work. But it shows the power of how just a little bit better mileage can help. If your monthly price goes up $25 in the F&I office, gas savings can cover it.
We not only want you to get a good car loan, we want you to get a great car, too.
