How to Budget Your New Car – It’s Easier Than You Think!
When you’re ready for a new vehicle, Shaver Chrysler Dodge Jeep® RAM & FIAT knows that the whole shopping and purchasing process can be daunting. Figuring out a budget may be a bit intimidating too, but we’re here with advice on how you can make sure that the vehicle you’re interested in is well within budget.
When figuring out the budget for a new car, you need to remember that the sticker price is not the final price. Those prices do not factor in expenses like title and registration fees, sales tax, or any extended warranties. You also need to be aware of the costs that come after buying the car, like car insurance, fuel costs, unforeseen repairs, and scheduled maintenance. This should all be taken into consideration both when researching and when figuring out a budget. When you’ve got a potential monthly payment set, go back to your personal income to see how you can handle the payments this new car will come with. Many people will say that it’s wise to keep your transportation costs to under 20 percent of your monthly income.
Once you determine a set price and what you deem capable of paying on a monthly basis, you need to decide how much you’re going to put as your down payment. Typically, the bigger the down payment will be, the smaller the monthly payments will be, and the less interest you’ll pay in the long run. If you want to drop your down payment even further, trading in your current vehicle is a great move. It’s a way to add to the value of your down payment. Experts say the down payment should be at least 20 percent of the vehicle price.
In our car finance department, we’re dedicated to pairing our customers with the best-suited vehicle and payment plan within their means. Stop in today and discover what we can do for you at our Dodge dealership serving Los Angeles, CA.