Calculating Your Car Budget

 

Here at Hall Mazda Virginia Beach, we’ve got an amazing selection of new 2019 Mazda models for sale as well as many certified pre-owned models. While shopping for a new car can be fun; picking out the right model for you and taking a test drive, figuring out how you’re going to pay for it isn’t quite as fun.

 

Budgeting for a new car is similar to budgeting for anything else, but we also know that not everyone is an expert on the topic. That’s where we come in. We’re breaking down the process to help you get inside your next car.

 

When budgeting for anything, it’s smart to know where all your money is currently going. Experts agree that you should spend about 10 percent of your monthly income on your car. So, if you make $3,000 a month, your monthly car allowance is $300.

 

Once you know how much you can afford, it’s time to factor in the total price of the car. Keep in mind that the total cost of your vehicle includes the sticker price, sales tax, title and registration fees, and the cost of optional upgrades. You’ll also need to keep in mind the associated costs of car ownership like gas and repairs.

 

Next, you’ll need to shop around for loan terms that fit your budget, keeping in mind that your monthly dues include both principal and interest. You’ll want to find a loan that you can pay off as quickly as possible as longer loans mean more interest. However, a larger down payment can increase your loan terms, as can trading in your current vehicle.

 

As your Virginia Beach Mazda dealership, we’re here to help you get the model that’s best for you. Visit us today to shop new models, take a test drive, and talk to us about your budget. We’ll help you find options that work for you.

Categories: Finance, News