Are you ready to buy a new vehicle? A car is certainly a major investment, and one that you shouldn’t take lightly. The Honda finance experts at Heritage Honda Westminster have a few tips to help you budget for a new Honda car, truck, or SUV.
Determine What You Can Afford
Before you start shopping for a car (or saving for one), it’s important to determine what you can afford. You don’t want to spread yourself too thin. Experts recommend that you keep your auto payments under 10-percent of your monthly income.
However, don’t forget the ideal debt-to-income ratio is under 36-percent. If you have a lot of existing debt, you may need to adjust your goals.
Use an Auto Payment Calculator
After you determine what the ideal monthly payment is for you, you need to see if the car you’re eyeing fits with your budget. An auto payment calculator uses a few varying factors to give you an estimate of your monthly payment. Simply answer a few questions on our online form to see what your new auto payment could be:
- Price
- Down payment
- P.R.
- Term
Get Estimates on Additional Expenses
Don’t forget, your car payment is just a part of your new expenses. We recommend getting an estimate on the additional costs associated with owning a car. You’ll need to consider auto registration costs, as well as factor in the costs for driving and maintaining your vehicle including fuel costs, service costs, and even car washes. Don’t forget about auto insurance. You’ll want to start shopping now and get a few different quotes.
Reach out to our Honda dealership in Westminster, MD if you have any questions, we’re happy to help!
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