Auto 101: Budgeting for a New Car

Want to buy a new Honda car at Keyes Honda? You’ve certainly come to the right place then, because we have a great selection of new Honda cars for sale at our dealership. Not to mention, we have a great staff who excels at customer service. In fact, our car finance center near Los Angeles, CA, is so committed to our customers that they have compiled a guide to budgeting for a new car.

Step 1: Calculate the Total Price

Start by calculating the total price of the vehicle you want to purchase. Be sure to account for more than just the sticker price, so calculate registration fees, sales tax, warranties, etc. Also start to think about the monthly costs associated with buying a new Honda car, like gas, auto insurance, and regular vehicle maintenance.

Step 2: Trade-Ins and Down Payments

One way to mitigate the total cost of your vehicle is to consider placing a significant down payment on your vehicle. This will significantly reduce your cost, which means that the more sizable your down payment can possibly be, the better. Additionally, you can trade in your old vehicle when buying your new car. This will also impact the total cost and could help you in negotiating the terms of your loan. These are just a couple of ways to offset your monthly payments.

Step 3: General Tips and Rules

Generally, you don’t want to spend more than 10%-20% of your annual income on your new car. This will allow you to comfortably pay off your loan or your lease without affecting other aspects of your financial situation. 

Here at Keyes Honda, our finance department can help you find the right new Honda car for your specific budget. We can’t wait to help you out!