When searching for a new car, it can be easy to fall in love with a model and immediately picture yourself driving around in it. But way before that can happen, you need to think about your finances. Here the Volvo finance experts at Fields Volvo Cars Waukesha have some tips to help you create a great budget.
Start with the Down Payment
The first thing to do is to determine how much money you can put down at the time of purchase. This should be as much as you can comfortably spend, but try to aim for 20 percent of the sale price. If you’re replacing an older vehicle, be sure to find out its trade-in value so you’ll know how this can help contribute to your down payment.
Consider the Monthly Payment
Next, think about your monthly expenses to figure out what you can pay each month for your vehicle. A good rule to follow is that you shouldn’t exceed 10 percent of your income for car expenses. In addition to the payment, this also includes things like insurance, fuel, and maintenance.
Choose a Smart Loan Term
Finally, you need to consider how long you want your loan to be. This will have a big impact on your budget, as the shorter the loan term, the higher your monthly payments will be. While a longer term will lower these payments, you have to keep in mind that this will mean you will end up paying more in interest.
Learn More About Volvo Finance in Waukesha, WI
Need some assistance budgeting for your new Volvo car? Get in touch with Fields Volvo Cars Waukesha to speak to a financing professional. You can also start the financing process now by filling out our online application. Contact us today to get started!