There are so many decisions when it comes to choosing a new vehicle. However, before you start narrowing down all of the possibilities, you have one major decision to make. How much of a vehicle can you afford?
Financial experts recommend spending no more than fifteen percent of your gross monthly income on a car payment. Once you’ve determined what that amount is, then you can simply plug it into an affordability calculator. The calculator will use that information to help you determine the total price you should spend on your new vehicle.
Keep in mind, there are lots of factors that contribute to the monthly cost for new cars in Danbury, CT. Any little changes in these factors can drastically change your monthly payment and even your total investment.
- Down Payment – the cash payment you make the day of purchase that goes towards the total cost of your car. You can pay cash or you can trade in your current vehicle. We can help you determine your trade-in value so you know how much its worth.
- Interest Rate – the hard cost that goes directly to the financial institution responsible for your loan. Your interest rate depends on your credit score and loan.
- Terms of Your Loan – the details of your loan can alter your monthly payment. For instance, you can get a lower payment by leasing, rather than buying a new vehicle. Or, you may opt for a longer term of the total loan.
Have more questions? We’re happy to help! Visit our auto finance center at Pamby Motors Chrysler Dodge Jeep® RAM and our financial experts can help you determine the best way to get into a new vehicle. Let’s get started today!