subject: Greenville SC Honda Asks: How Much Car Can You Afford? [print this page] Greenville SC Honda Asks: How Much Car Can You Afford?
Before you jump behind the drivers seat of your next vehicle, it is important to determine exactly how much car you can afford. Regardless of the type of vehicle you purchase, new, used or certified pre-owned- how much you pay for your next car should reflect how much your budget can comfortably expand. Greenville SC Honda understands that for each person the purchase of a vehicle is a major investment and encourages all drivers to carefully consider how much they can afford to spend. Consider the following tips from Honda dealers to ensure your "new" car purchase fits your budgetary needs.
Consider interest rate- Honda dealers are offering great end-of-year sales and incentives which may include low interest rates. When you are looking at the purchase price of a vehicle, you must remember to calculate how the interest rate will affect your monthly payments. With low interest rates, you can afford more car than you would if the interest rates were higher.
Percentage of monthly income- Experts recommend car payments should not exceed 20% of your take-home pay each month. This gives buyers a good guideline when shopping for their next vehicle. Your South Carolina Honda dealer can help calculate how much your monthly payments will be and whether or not that figure fits within your budget.
Down payment- Buyers who have a down payment or even a trade-in will instantly reduce the purchase price of their next vehicle. Depending on how much you have to put down, you can save a significant amount of cash. This will either result in a much lower car payment or the ability to finance a better vehicle.
Length of loan- Honda dealers of Greenville have loan terms to help every buyer get in the car of their dreams. Whether you decide to buy or lease, understand that the length of your loan term will affect the overall affordability of a vehicle. While longer loan terms reduce monthly payments, buyers should carefully consider how long they want to extend their financial obligation. This will impact how much car you can afford to buy.
Keeping your budget in mind while shopping for your next car or truck will help you save money when meeting your transportation needs.
