Budgeting Tips from Heritage Honda Parkville

 

We all love shopping for a new car like the 2019 Honda Passport. However, figuring out how to pay for it is another thing. For many of us, when setting out to find a new car, we have to figure out our budget.

 

While we’ve got many great deals on new cars here in the Parkville, MD area, budgeting for a new car is still something that we have to do. If you’re unsure of how to go about budgeting for your next car, worry not. We’re here to help.

 

We recommend starting by figuring out your entire budget. We like to follow the 50-30-20 rule. This rule breaks down your take-home pay into three categories: needs, wants, and savings. Your car falls into the need category. Therefore, start by subtracting half of your take-home pay. Experts recommend spending no more than 20% of your monthly income on your car. However, you’ll need to factor in other costs like gas, insurance, and maintenance.

 

Now that you know how much you can afford, it’s time to figure out the total cost of your new car. Keep in mind that the total cost includes everything from the sticker price to the tax and registration fees.

 

For most of us, financing a new vehicle is the way to go. So, knowing what you can afford, it’s time to shop for auto loans. Lower monthly payments may seem enticing but keep in mind that you’ll pay more in interest. Making a larger down payment and trading in your current car are two great ways to lower monthly and total costs.

 

Finally, there are many online tools to help you calculate your budget, loan amount, and affordability. However, please feel free to stop by our Parkville Honda dealership to shop new models and get help budgeting for your new car.

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