Remember, Your Car Budget is More Than Just Loan Payments!

Making a budget for your new car is easy: just add up your income, and subtract your expenses, and the remainder is how much you can spend each month on a vehicle. However, one common pitfall is thinking, "I have $300 left over each month, therefore I can take out a loan with a $300 monthly payment."

Budgeting like that is bound to get you in trouble, resulting in missed payments and damaged credit (or mooching off your friends).

First of all, it's best to leave yourself a bit of wiggle room. Budgeting right up to the limits of what you theoretically could pay, leaving zero dollars after subtracting expenses from income, is dangerous if anything in your life changes. Always leave a margin of error, and for deposits into a savings account.

Second, your automotive cost of ownership is so much more than monthly payments. Only accounting for your loan will leave you high-and-dry on gas, insurance, maintenance, taxes, and fees!

Talk to our experienced financing associates at Keller Ford Lincoln to figure out what payment options are sensible for you.

Categories: Finance
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