Budgeting for a new car takes a lot of consideration and involves a lot more than just dividing up the sticker price you see on the car. There are plenty of factors to consider when deciding what kind of car you can afford. That’s why Gesswein Motors has put together a few tips to help you piece together your new-car budget.
The first thing to know is that the total price will amount to more than simply what the window sticker says. You’ll need to take into account taxes, registration and title fees, and warranties or other add-ons you may want. You should also consider indirect factors such as insurance, gas, maintenance, and more.
If you plan to finance your new Dodge car, the best way to judge what kind of budget you can work with is to calculate your monthly payments. These are all affected by your interest rate, your loan term, and your down payment. A higher down payment and lower interest rate will mean lower monthly payments overall. Another thing you can do to decrease your monthly payments is to trade in your old car if you have one; this will help defer the total cost.
A general rule of thumb for purchasing a new car is to devote about 10-20% of your income to your transportation situation. Remember to compare this against what your monthly payments would be, as well as the additional factors mentioned above like gas and insurance. You want to make sure every car-associated expense will fit this amount.
No matter what kind of car you plan to take home, a thorough and well-thought-out new-car budget makes all the difference. Once you’ve completed your budget and have a price range you’d like to shop in, visit our local car dealership to learn more about what we have to offer that fits your needs.