When you plan on purchasing a new car, you have a lot to figure out, including your budget. Follow these money-saving tips to help you budget for the new vehicle you want.
Decide on a down payment
The higher the down payment you make, the lower your monthly payments and interest rates can be. That’s why you should prepare to make a down payment worth 20 percent of your new vehicle’s price. Knowing this, you can also discover which cars are more affordable options for you.
Plan for monthly car payments
In general, it’s a good idea to put 20 percent of your income towards debt repayment or your savings. Meanwhile, 30 percent of your income should go towards wants, and 50 percent should be for needs. Before heading into a dealership, decide if your car is a need or a want, and then budget accordingly.
Trade-in your car
You can trade-in your old car to reduce the cost of your new one. In doing so, the dealer would assign a value to your trade-in, and then that amount would be taken off of your new car’s price, saving you money.
We at Sunrise Buick GMC at Covington Pike have an extensive collection of Buick and GMC vehicles, and we would be happy to walk you through the financing process for these new vehicles. Hope you enjoyed these saving tips.