Whether you want a new Acura car or you’re thinking, “I wish there were used cars near me that were equal parts reliable, stylish, and feature-rich,” you’ll find what you’re looking for at our Acura dealership near Manchester, CT. When you’re shopping for a new or pre-owned vehicle, it’s often helpful to have a budget. Having a car budget on hand can help you avoid putting a strain on your finances.
In general, it’s advisable to spend no more than 36 percent of your total monthly income on your debt. If you have a mortgage, credit cards, and outstanding loans, add up what you already pay to cover them each month. Multiply your monthly income by .36 and then subtract the total of your current monthly debt payments from 36 percent of your income.
The result is what you can reasonably afford to devote to your monthly transportation expenses, including your loan or lease payment. Keep in mind that your transportation expenses include more than your loan or lease payment. They also include costs related to maintenance, insurance, and fuel.
Whether you have debt or not, it’s wise to devote just 10 to 20 percent of your income to covering your transportation expenses. If you make $8,000 per month, you should be able to devote between $800 and $1,600 to your monthly transportation expenses, which include your loan or lease payment.
To fine tune your budget further, you can use the Payment Calculator on our website. Our Payment Calculator will show you what your car payment will be depending on various factors such as the length of your loan, your down payment and your loan’s interest rate.
If you need help creating a budget, the experts in our Berlin, CT Acura finance center can help. Visit Acura of Berlin to get help with your car budget today.