New Car Budgeting Tips

During the excitement many folks feel when shopping for a new set of wheels, they may forget about a very critical thing – budgeting for a new car. But, it’s not as intimidating as it may seem when you work with us at Bob Smith Toyota. Here’s how to effortlessly budget for a new Toyota car, truck, or SUV at our Toyota dealership.

If you don’t wish to fret about spending more than you can afford on a new car, you need to know the optimal budget guidelines. Experts recommend that monthly car payments should be no more than 15 percent of your gross pay or 20 percent of your take-home pay. Your down payment should be at least 20 percent of the purchase price, and the maximum term of your car loan should be 48 months. For instance, if you earn $5,000 every month, your auto payment shouldn’t exceed $750.

After you figure out the optimal budget for your new or pre-owned Toyota, review the rest of your monthly bills to determine how your new auto payment will fit into your budget. Your new car payment should not hamper your bank account and intrude on other essential costs such as rent or mortgage, food, and utility bills.

Once you figure out how much you can spend, visit our Toyota dealership today to check out our huge inventory of affordable new Toyota models. We also carry a large stock of pre-owned vehicles for those who may be on a stricter budget. Get in touch with us today to learn more about how you can prepare for a new vehicle purchase.