Now because I'm contemplating getting this car (taxi), I found myself thinking “What car can I really afford for this venture?” More specifically what car fits my budget? I made a 5 point checklist to help with this decision.

1. Figure out your monthly income and expenses
First things first, let’s crunch those numbers. Calculate your take-home pay after taxes and deductions. Then, tally up all your regular monthly bills – rent or mortgage, utilities, groceries, and any existing debts like credit card payments or student loans oh and those subscriptions, don’t forget those.

2. Apply the 35% Rule and 20/5/15 Rule. Now, let’s get nerdy with budgeting. I’m all about rules because it makes things flow. First the 35% rule. This one is simple and its telling you not to spend more than 35% of your gross annual income on your car. Lets say you make $3,200,000 per year then you should spend $1,120,000 on a car. This is kind of unrealistic especially with these car prices now a days so this rule is just for finding the ball park range for ideal car prices. The second and original rule is the 20/4/10 rule where you save up a solid 20% for a down payment of the car then cap your loan at four years tops, and make sure your total car costs don’t consume more than 10% of your monthly income. However I thought this rule was a little restrictive especially in Jamaica, so I came up with my 20/5/20 numbers instead.

3. Your Credit Score is your savior.
Focus on building your credit score because this will in turn show your credit worthiness and allow you to negotiate better interest rates which will save you more money in the long run.

4. Choosing the Right Lender
Research is your trusty sidekick in finding the perfect lender for your needs. Start by making a list of potential lenders, this could include banks, credit unions, online lenders, and even dealerships. But because I know @jmmbgroup has the Drive Easy solution, I don’t have to look any further.

Drive Easy offers:

Up to 100% financing.
Flexible loan tenure on used cars up to 9 years, and new cars up to 10 years.
Great interest rates plus they offer in house insurance brokering.

Let’s hit the road!

Disclaimer: This video is for educational purposes and should not be considered financial advice. Please seek the services of a licensed financial advisor at JMMB.

#JMMB #JMMBDriveEasy