How to Budget for a New Car

May 13th, 2019 by

At Glenbrook Dodge Chrysler Jeep®, we’re dedicated to making sure our Indianapolis-area customers are informed and educated for whatever comes their way. Eventually, you’re going to need a new vehicle. And if you’re planning on financing, figuring out a monthly payment and how to create a new car budget is vital to making sure you can afford your vehicle.

When starting a budget, you need to be aware that the final price on whatever vehicle you have in mind is not what’s on the sticker. Fees like registration and title, combined with sales tax and the highly recommended extended warranty can add more to the bottom line. You also need to factor in the costs to insure the vehicle, as well as what you’re going to be paying in fuel costs, maintenance fees like oil changes and tire rotations, any repairs that come down the pipe, even yearly registration fees – they all add up and weigh down your bottom line.

One thing that helps that bottom line is the car you’re replacing. No matter if you’re buying new or used, you can trade in what you’re driving now to add more value to your end of the deal, helping beef up your down payment and reduce your monthly payment overall.

And speaking of your monthly payment, you need to make sure that whatever it comes down to doesn’t put too much of a dent in your income. Experts suggest a payment for your vehicle to go no higher than 20 percent of your monthly take-home pay. It’s a good guide to keeping costs from ballooning beyond your control.

When you’re ready to find your next vehicle, come to our Fort Wayne, IN finance center for the best deals on new and used Dodge vehicles and so much more. Our experts will find the best deal for you and your wallet, and provide you with a car you’ll be relying on for years to come.

Posted in Uncategorized