Have you set your sights on a new Alfa Romeo car or SUV? In planning to purchase a new vehicle, you’ll need to consider your budget and the monthly payment you can afford.
When calculating your new car budget, Alfa Romeo of Glenbrook wants to provide you with some information about how to determine your budget.
The total cost of your new Alfa Romeo Guilia car is more than the sticker price. You also have to take into account up-front costs like sales tax, titles fees, and registration. There are, of course, additional costs that go along with car ownership like maintenance, annual taxes, registration costs, insurance, and gas.
Your monthly payment includes both principal and interest. The amount depends on the total figure borrowed and your interest rate. Make sure it’s a number you can afford.
If possible, it’s a good idea to make a down payment. This will lower the total amount borrowed and your monthly payment.
Your Trade Value
If you don’t have a down payment, you may be able to put something toward your new car with a trade-in. See what your trade is worth with our Value Your Trade process.
Stick with the 10% to 20% Rule
Most people spend about 20% of their income on transportation. If you can get that lower, the less pressure you’ll have on your finances.
Your Total Debt
If you currently have debt, then you need to be careful about adding more to your plate. Experts state you should only spend about 36% of your income on debt. Keep this in mind when making your budget.
Have questions about budgeting? Talk to the experts at Alfa Romeo of Glenbrook. We look forward to helping you find your new vehicle!