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Some tips for planning your car budget

Some tips for planning your car budget

Buying a vehicle is always an exciting experience, but you still have to be sure to plan your budget because the significant investment. After our home or house, the car takes up most of our monthly budget, and the costs of ownership can be just as significant and important as the costs of buying it. Here are some tips that will help you buy your next vehicle while making sure you stay in financial health.

Expenses to consider

There are many expenses to consider that go beyond the monthly payment related to the vehicle and this is where many consumers go wrong when planning their budget for the next car. The monthly payment related to financing the vehicle is certainly one of the most notable expenses of the purchase, but it is far from the only one.

For example, you have to plan monthly expenses for gasoline, insurance, and items that come up on a regular basis such as parking fees if applicable. Then there are the expenses which are not monthly but come back on an annual basis such as maintenance, driver's license and registration fees. Add to that expenses that you will have to make at least once while you are the owner such as summer and winter tires and the replacement of certain components such as the battery and the brakes that are not covered by the warranty, and you have an amount that accumulates quickly.

To avoid taking any chances, it's wise to add at least 75% of the monthly car payment to our total monthly budget. For example, if the car costs you $ 300 dollars per month, you should plan between 200 and 225 $ more for the expenses related to the car. Even if you don't spend the full extra amount each month, set it aside for future maintenance, repair costs if ever there is one, and tire-related costs.

Come meet us today to learn more about automotive budgets and let us help you find an affordable vehicle for you!