Buying a new car is always an extra expense that some families aren’t equipped to handle. When it comes to learning that your current vehicle needs an upgrade you may be feeling overwhelmed with the idea of whether or not you can afford it and what car dealerships will have the best deals on a new family vehicle for you. That’s why I’ve decided to develop a list of tips to help you calculate your budget for a new family car.
Easy Ways to Calculate Your Budget For a New Family Car
Think of All Costs
There is more to think about when you’re calculating your budget for a new family car than just the sticker price. You’ll have to take into consideration sales tax, car insurance pricing, registration costs and inspection costs just to name a few extra costs involved with a new family car budget.
Review Expenses
The first step is to figure out what your current household expenses are that are a must to keep up with. Evaluate your income versus expenses ratio as you should always stick with a 10% rule. This means that your budget for a new family vehicle shouldn’t be any more than 10% of your current household income. Try to get your budget down to this level so that you can afford a new family car with ease.
Discuss Trading
If you have a current family car that can be used as a trade-in, you may want to contact your local car dealership to find out what they’re offering for trade-ins. Some dealerships offer a huge deal for trade-in vehicles during various times of the year. Discuss trading your current car to save on the costs associated with a new family car purchase.
Lease or Buy
There are some pretty awesome lease deals when it comes to buying a new family car at a discounted monthly price. You may be more open to leasing than buying as a means to try out a new family vehicle for a while to see if it fits your needs. Leasing can also reduce the upfront costs associated with buying a new family car as well as work to keep the monthly payments lower.
No matter what you determine is a decent budget to buy a new family vehicle the key is to use these tips to calculate the best budget for your new family vehicle and to work in a trade if possible to lower the cost of your initial investment in a new family vehicle. Talking to your local car dealership will honestly help the most when it comes to calculating an appropriate budget for your new family vehicle.
