We love it when drivers tell us they want to buy or lease a new vehicle like the 2019 Volkswagen Jetta. We like it even more when we see the look on a motorist’s face when the person slides into the driver’s seat of a VW automobile for the very first time. “Wow,” is a word we hear often when that happens.
Just like we enjoy introducing area drivers to the VW vehicles in our showroom, we relish sharing advice about automotive topics. In a recent post, we provided some insights into the financing process. Now, we’re going to share some tips that can help you create a budget to buy or lease an automobile.
Whether you’re going to get a new or pre-owned vehicle, the budgeting process is the same. The first thing you should do is review your finances to determine how much you can afford to put down on your next car. If you don’t want to put down cash, consider trading in your current vehicle. You can get a solid idea of your car’s value by using the KBB Value Your Trade tool on our website.
Your next task will be to identify how much you can afford to put toward your combined automotive expenses every month. In general, it’s advisable to limit the amount you dedicate to cover your automotive costs to 10-20% of your monthly income. If you earn $5,000 per month, the most you should allocate to cover your car expenses, which include you loan or lease payment, fuel costs, insurance premiums, and more, would be $500-$1,000.
To learn more about putting together a car budget, contact the experts in our Baltimore, MD Volkswagen finance center or visit Heritage Volkswagen Catonsville on Baltimore National Pike now.