Buying a new Kia car is an exciting time for any driver. After months of research, you’ve finally committed to your dream vehicle. Now comes the less than fun part: paying for it. While some drivers might be overwhelmed at this part, you don’t have to worry because Kearny Pearson Kia is here to help.
As your local California Kia dealer, we want our community to be as informed as possible. Since our aim is to help make the car buying process easier, the staff at our car finance center near San Diego, CA, designed a simple guide to helping you budget for your new car.
The 10%-20% Rule
When you first start the process of budgeting, it’s a good idea to have your absolute maximum set out. Though everyone’s individual financial situation varies significantly, there are a few general rules to abide by. One is to account for about 10%-20% of your annual income to go towards payment of your automobile. Any more than that might make it difficult to fulfill other financial obligations.
Another way to figure out your new car budget is to look at your finances on a monthly basis. That means you should look at your monthly budget and see how much you can afford to spend on your car. Be sure that when you account for the cost of your car, you also include the cost of car insurance, regular maintenance, and gas. This is a good starting point since it will also give you insight into the terms of your loan or lease.
The experts at our finance department in San Diego, CA, can help you learn more about budgeting for a new car. Visit Kearny Pearson Kia!