Are you ready to purchase a new Mazda vehicle? Before you make your purchase, you’ll need to consider your budget. With a new monthly payment due each month, it’s important to think about how this will impact your current budget.

When calculating your new car budget, Fields Mazda of Asheville wants to provide you with some information about how to determine it.

Total Price

The total cost of your new car is more than the sticker price. That’s the starting point, but there are also up-front costs like sales tax, title fees, and registration expenses. Further, owning a car has many other costs during its life such as regular maintenance, annual taxes and registration costs, insurance, and gas.

Monthly Payments

Your monthly payment includes both principal and interest. The amount depends on the total figure borrowed and your interest rate. Be sure this payment won’t put a strain on your finances.

Down Payment

If possible, it’s a good idea to make a down payment. This will lower the total amount borrowed and your monthly payment.

Trade-In Value

If you don’t have a down payment, you may be able to put something toward your new car with a trade-in. We have a quick Value Your Trade exercise that can help you get an idea of what it’s worth.

10% to 20% Rule

Most people spend about 20% of their income on transportation. If you can get that lower, then you’ll feel less of a pinch each month.

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. Be sure to balance your debt concerns with your new car purchase.

Have questions about budgeting? Talk to the experts at Fields Mazda of Asheville. We look forward to helping you find your new Mazda vehicle!

Categories: Finance, New Inventory

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