Buying a new car entails so much more than I previously thought. From figuring out how much “car” you can afford, to determining what type of car will work best for you, the list of proactive steps to take before you sign on the dotted line seems endless. While yes, many steps come into play when buying your new car, the biggest step I want to help you with today is setting a budget for your new car purchase. If you’re heading to the local dealership and want some tips for how much you can spend on that new car purchase, then continue reading for some tips to help you set a new car budget with ease. This post is brought to you by Butlerchryslerdodgejeep.com.
Easy Ways to Calculate Your New Car Budget
Consider Total Price
The total price of your new car goes beyond what the selling price is for your new car. You’ll want to take into consideration the total price that includes the sticker price, the title, insurance, and other fees involved with buying a new car. You can easily estimate some of those costs beforehand to get a general idea of what a new car may end up costing to use to calculate your new car budget.
Take a moment to review your income and expenses in the house. This is an important step in calculating your new car budget because you can’t spend money on a new car if you don’t have any money. Take a moment to figure out what you can remove from your current household expense list to make room for a new car payment and what amount is left over after all other household expenses have been deducted from your household income.
Calculate Monthly Payment
Remember that your new car is probably going to carry a hefty monthly payment, so be sure you know how much the monthly payment will be on a new car. You can easily estimate a monthly car payment by talking to your local dealership about their current rates and pricing options. Consider getting a list of approximate monthly payment options to help you calculate your new car budget.
Down Payment or Trade-In
When you work to calculate your new car budget, you’ll want to take into consideration whether or not you’re putting a down payment on the new car or trading in an older vehicle. Each of these things will be taken off the total price of your new car purchase. Have a discussion with the sales rep at your local dealership to see what types of down payment options or trade-in options they have to help get your new car budget calculated.
At the end of the day, buying a new car can be stressful. This is a new expense that you’ll be adding into your already packed full household expense list. That’s why I highly recommend you follow the simple steps I shared today to calculate your new car budget. This will ensure you can get a new car without breaking the bank or added more stress into your life.