If there is a potential new car in your future, it’s understandable that you want to review all your options for buying and/or leasing. In doing so, you should formulate a budget so that the vehicle you’re interested in is within your means. Budgeting is a good way to make sure you don’t bite off more than you can chew, and it offers a way to streamline the vehicle selection process. At Van Horn Ford of Oconomowoc, we came up with some helpful tips as you go about putting together your Ford budget.
Whether you are interested in a used Ford car or a new model, everyone goes straight to the sticker price. However, there’s more involved than just this blanket value. When you are budgeting, know that there is a variety of fees involved, which includes your sales tax, title and registration fees, and anything additional that you want like extended warranties or optional packages. Once you have this total number, it will be easy to give yourself some breathing room as you shop for a new vehicle.
New or pre-owned, a vehicle is an investment, and one that shouldn’t be taken lightly. Budgeting is a way that helps you determine if you’re able to afford such a purchase. We recommend our customers track their spending on a monthly basis for a few months prior to purchasing or leasing. As a general rule of thumb, a monthly car payment shouldn’t be more than 15% of your gross pay, or 20% of your take-home pay. The down payment, as well, should be at least 20% of the purchase price. Of course, the higher the down payment, the less the monthly payments will typically be.
Van Horn Ford of Oconomowoc is located at 1000 E Summit Avenue. If you have questions on planning a budget or determining the price of a new Ford F-150 or Ford EcoSport, call us at (888) 823-8191. We look forward to helping you soon!