You might be tempted to apply for Volvo financing right away, but you need to ensure you have a proper budget first. Knowing how much you can afford to pay for a new vehicle each month will help you know which financing offers fit your bill. As part of our Volvo Financing Tips series, the Fields Volvo Cars Northfield team offers some great tips on budgeting for a new car.
Why Should I Budget?
Budgeting out your new vehicle expenses might seem like a hassle, but it’s a crucial step in avoiding debt and financial ruin. Without a clear budget in your head, you might go overboard on a financing offer, not realizing that you can’t make each payment without stretching your wallet. It’s a critical part that should not be ignored.
How to Budget for a New Car
In general, you shouldn’t put more than 10% of your take-home income towards your new vehicle. This includes monthly payments and interest as well as operational and maintenance expenses like gas, oil, etc. The exact amount you should budget for will depend on your income, but you don’t want to put too much towards your car at one time.
Other Budgeting Tips
It’s wise to reserve a little bit of money for emergencies or repairs, as they can put a dent in your finances if you’re not prepared. Also be sure to consider the additional costs of luxury features and packages, as this will increase the purchase price of your desired vehicle.
Discuss Volvo Financing and Budgeting in Northfield, IL
Once you’ve budgeted out your new car expenses, it’s time to secure a Volvo financing offer. Contact the Fields Volvo Cars Northfield financing experts to get pre-approved for a loan. Don’t wait — test drive a new Volvo vehicle today!