Here at Lester Glenn Chrysler Dodge Jeep® RAM, we love helping our customers shop for new cars. We also love helping our customers with other parts of the car-buying process, and that includes budgeting and payments. Properly budgeting for anything, let alone such a big purchase like a new 2019 Jeep Cherokee or 2019 RAM 1500 can seem like a daunting task, so we are here to help with these budgeting tips.
When budgeting for a new car, we like to listen to the experts and allow for no more than 15 percent of our income to go towards a new car and car payments like insurance, gas, and maintenance. This means that if you take home $4,000 per month, then you should spend no more than $600 per month on vehicle costs.
By breaking down what you can afford into easily understandable segments, you’ll get a great idea of what you can realistically afford. Once you have that number, it’s time to figure out how much a new vehicle is going to cost you by calculating the total cost. Remember, a new car’s total price covers more than the sticker price; you also need to factor in tax, registration fees, and optional upgrade costs.
You’ll likely want to finance your vehicle, which means you’ll need to apply for a loan. Your monthly payment on the loan covers both the principal and interest, and that amount is affected by the vehicle’s price, the length of your loan term, and your interest rate. Normally, the more you put down on a vehicle up front, the more you’ll save in the long run by avoiding interest. If you don’t have a chunk of money available to put a downpayment on a car right now, you can look into trading in your vehicle and putting its value toward your new model.
When it comes to car budgeting, we recommend taking everything one step at a time. When it’s time to shop and test drive models you’re interested in, visit our Toms River, NJ dealership. We’ll help you find the right model for you in the price range that fits your budget.
