It's hot, it's fast, but can you really afford it?

So you're ready to buy that dream car, but not sure how to begin? The first step is to figure out your budget before you even start looking. It's easy to want that hot speedster or luxury SUV, but if you don't have any food on the table after making the monthly payment, then maybe you will need to downscale a little. Knowing how much you can afford before you make that purchase will save you some head-aches down the road, along with giving you good checks and balances before walking into the deal.

One easy tool that works well in budgeting for a vehicle are the free, on-line payment calculators. Most banks and credit union sites will have these. Just plug in your interest rate and desired monthly payment, and it will tell you how much car you can afford. Or, you can input the vehicle's estimated purchase price (be sure to include sales tax), and it will give you your monthly payment. Knowing what you can afford before you sign on the line will help you breath a little easier once that monthly payment coupon comes.