Pennsylvania Kia Helps Drivers Determine How Much To Pay For A Car
Pennsylvania Kia Helps Drivers Determine How Much To Pay For A Car
Is a new car in your future? If you are in the market for a new or even used car, it is important to know exactly how much car you can afford. When you take the time to learn how much money is available for car payments and other expenses associated with car ownership, you avoid the unfortunate situation where too much of your income is tied up in car expenses. Here at Pennsylvania Kia, we want you to drive away in a car that works for both you and your budget. The following tips will help you determine a price you can afford.
Percentage of income- Your total debt payments should account for no more than 36% of your gross income, according to financial experts. If you follow this suggestion, you can look at your current gross monthly income and determine what 36% of that figure is. Take this figure and deduct your total monthly payments for which you are currently responsible. The remaining figure is how much you can afford for monthly car expenses.
Consider long term affect on budget- It is also important to consider how your budget will be affected in the long term. For example, if you have a figure in mind which meets your current budgetary needs, yet you anticipate a major life event in the near future- adjustments have to be made to fall within the budget. Kia dealers in Springfield can help you compare payment options for different loan periods.
Consider loan terms- By having a figure in mind before you start shopping, you can better communicate your financial needs to your Kia dealer. This is a great time of year to buy a car with many year end sales and incentives. A great interest rate or other favorable terms may help you get in the car of your dreams at a price you can afford.