What Car Can I Afford?

4/21/2025

 

When it’s time to buy a new car, one of the first questions to answer is, How much vehicle can I afford? At LincOne Federal Credit Union, we’re here to help you navigate the complexities of car buying while offering competitive car loan rates right here in Lincoln, NE.

What Car Can I Afford? Car Loan Rates in Lincoln, NE

Determining Your Budget

Before heading to the dealership, it’s essential to establish a car budget that aligns with your financial situation. A well-planned budget ensures you can comfortably afford your vehicle without overextending your finances. We understand how difficult it can be to make decisions in the moment and are here to help you plan ahead so you can confidently spend your money. 

How Much Should You Spend?

Experts recommend spending no more than 15% of your monthly take-home pay on your car payment. For example, if you bring home $3,000 monthly, a safe car budget would allow for a car payment of around $450. However you should also keep in mind that your car budget should factor in other costs, such as insurance, maintenance, and fuel, which can significantly impact your monthly expenses. Use our Car Affordability Calculator today to help calculate your expenses. 


Calculate how much you should spend on a vehicle and check your credit score

Check Your Credit Score

Your credit score plays a vital role in determining the loan amount you qualify for and the interest rate you’ll receive. A higher credit score typically translates to a lower annual percentage rate (APR), reducing the total cost of your car loan. Before applying, review your credit score and consider taking steps to improve it if necessary. 

Down Payment and Loan Terms

A good rule of thumb is to put down at least 20% of the vehicle’s price as a down payment. This reduces your loan amount and can lead to lower monthly payments. Choosing a shorter loan term, such as 4 years, may also help you save money by reducing the interest paid over time.

Total Monthly Vehicle Costs

Your car budget should account for all expenses, not just the monthly car payment. Be sure to include:Car dealership

  • Insurance premiums: Rates can vary based on the car’s value and your driving history.

  • Fuel costs: Consider the fuel efficiency of the vehicle you’re buying.

  • Maintenance and repairs: Budget for routine upkeep and unexpected repairs.

By carefully planning your car budget, assessing your credit score, and understanding the loan amount you can afford, you’ll be ready to make a confident car-buying decision.

Using the 20/4/10 Rule

A popular budgeting method is the 20/4/10 rule:

  • Put 20% down on your car.

  • Choose a loan term no longer than 4 years.

  • Ensure total vehicle expenses don’t exceed 10% of your gross pay..

Exploring Car Loan Rates in Lincoln, NE

LincOne Federal Credit Union offers competitive car loan rates that help make your dream car a reality. Here’s why our members love our auto loans:

  • Flexible terms tailored to your budget

  • Competitive annual percentage rates (APRs)

  • Fast and easy approval process

View our current auto loan rates here.

Tools to Help You Decide

Use our Car Affordability Calculator to determine what car fits your budget. Simply enter your income, expenses, and desired loan terms to see a personalized breakdown.

Why Choose LincOne Federal Credit Union?

As a trusted credit union in Lincoln, NE, we’re committed to helping you make smart financial decisions. Whether you’re buying a new or used car, our auto loans are designed to give you peace of mind and we want you to be financially empowered while making your choice. 

Start Your Car Buying Journey Today

Ready to take the next step? Visit us at LincOne Federal Credit Union, or apply for a car loan online to see how we can help you afford the car you’ve always wanted.

Visit LincOne Federal Credit Union today to learn more about our car loan rates and start your car-buying journey with confidence.



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