How to Budget for a New Car

February 20th, 2022 by

new cars for sale

Purchasing a new or pre-owned Chrysler, Jeep®, Dodge, or RAM vehicle is a thrilling prospect. Whether you’re in the market for a work-ready pickup truck, an adventure-ready SUV, a family-friendly minivan, or a commute-friendly sedan, we have a variety of new cars for sale here at Best Chrysler Dodge Jeep RAM.

Our friendly car finance experts would like to share their tips on how to budget for a new car.

Budgeting Guidelines

If you don’t want to worry about buying more car than you can afford, there are three different budget guidelines that most finance professionals recommend.

  • Monthly car payment should be no more than 15 percent of your gross pay or 20 percent of your take-home pay
  • Down payment should be at least 20 percent of purchase price
  • Maximum term of a car loan should be 48 months

For instance, if your gross monthly income is $6,000, then your maximum monthly car payment should be no higher than $900.

When planning out your budget, do not forget to include extra car expenses, such as:

  • Gasoline
  • Car insurance
  • Service and maintenance

Our RAM Finance Center

Whether this is your first time buying a new car or you’re a seasoned veteran, we understand that it can be a complex process. The friendly professionals here at our car finance center are available to make things as stress-free as possible. We work with everybody, regardless of your credit history and credit score, to ensure that you get a car loan that works for you.

You can also utilize our handy car payment calculator to help plan your monthly car budget.

For more information about financing or budgeting, speak to a finance representative here at Best Chrysler Dodge Jeep RAM.

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