A vehicle is usually the biggest investment next to a house. Since you’ll be forking over more than a pretty penny, you’ll want to budget wisely and make sure you don’t end up paying more than your budget allots. Here are some tips for smart budgeting and ensuring your next car purchase doesn’t put you in financial purgatory.
We recommend the 15% strategy proposed by Edmunds. This means your monthly payment should not exceed 15% of your monthly earnings. If you’re leasing, it shouldn’t be more than 10%. Keep in mind these percentages do not factor in other car-related expenses, such as insurance and fuel. These will consume about another 7% of your monthly income. That means a total of 22%, or a little more than a fifth, of your total take-home pay. This leaves enough buffer to pay off other monthly bills without having to nickel and dime yourself.
We also suggest a maximum loan term of no more than 48 months. In addition, the down payment should ideally be at least 20% of the total car price after all cost factors are accounted for. None of these rules are ironclad, but they provide a good starting point if budgeting is a major concern, which we know it is for most people. If you have a stable job and have no trouble making payments on time, sticking to these figures should ensure you make your car payments with minimal problems.
To help with your Kia financing near Staten Island, NY, use our payment calculator to start. To further cut down on costs, please check back often for limited-time offers on models like the 2019 Kia Optima and more. Likewise, you can save even more by trading in a current vehicle.
Connect with us
Recent Blog Entries
Categories
Warranties include 10-year/100,000-mile powertrain and 5-year/60,000-mile basic. All warranties and roadside assistance are limited. See retailer for warranty details.
DISCLAIMER: Dealer shall in no way be held liable for any errors or omissions to be found on this website. Price(s) include(s) all costs to be paid by a consumer, except for licensing costs, registration fees, and taxes. Prices are subject to change without notice. Any purchaser or prospective purchaser should independently verify with a salesperson the accuracy of all information listed on this website. Actual equipment of this vehicle may differ. Contact store for more details.