How to Budget for a New Car

Are you in the market for a new car? If so, one of the most important things to keep in mind is your budget. You’ll want to determine what you want to spend in total and what you can spend on a month-by-month basis.

When calculating your new car budget, Champion Chrysler Jeep® Dodge RAM FIAT wants to provide you with information about how to do so successfully.

• Total Price

The total cost of your new vehicle is more than just the sticker price. You also have to take into account upfront costs like sales tax, titles fees, and insurance. Down the road, you also have to budget for fuel and maintenance as well as annual taxes and registration costs.

• Monthly Payments

Your monthly payment includes both the principal and interest. The amount depends on the total figure borrowed and your interest rate. Make sure it’s a number you can afford.

• Down Payment

The down payment is the amount paid upfront. Typically, the higher the payment, the lower the total amount borrowed and monthly payment.

• Your Trade-in Value

As either the full down payment or a portion, consider trading in your vehicle. To get an idea of its worth, you can value your trade right here on our website. An official value will be provided with an in-person appraisal.

• Stick with the 10% to 20% rule

Most people spend about 20% of their income on transportation. If you can get that lower, the less pressure you’ll have on your finances.

• Your Total Debt

If you currently have debt, you need to be careful about adding more to your plate. Experts state you should only spend about 36% of your income on debt. Keep this in mind when making your budget.

Have questions about budgeting? Talk to the experts at our Dodge dealership. We look forward to helping you find your new vehicle!