2021 has finally arrived, and with the beginning of a new year comes new opportunities. To embrace these opportunities and achieve goals that we did not capture in the previous year, many of us will set New Year’s resolutions. One resolution for many individuals is to finally buy or lease a new vehicle. We understand that purchasing a new vehicle is a major decision, which is why we are here to offer some tips on navigating the process, so that you get the best deal and conquer that New Year’s resolution!
Budgeting
The most frightening part of taking on a new vehicle is knowing how much to put down, how much you can afford per month, and what the proper duration of your loan should be. Getting the best value for your money will help you enjoy your vehicle rather than it being a burden every month. Budgeting is the best planning strategy you can have when purchasing or leasing a new vehicle. It will help you know how much you can afford in terms of loans, monthly payments, and down payment.
Loans and Money Down
Generally, it is a good rule to aim for 20% down on a new car and at least 10% down on a used car. This will ensure that your payments will be small enough to meet your budgeting goals. One way to make your payment more affordable is to increase the length of your loan. Many people will take out a 72 or 84 month loan, but most experts advise a 4 to 5 year loan so that when you’re ready to get into a new vehicle, your current one will be paid off.
Monthly Payment
Now that you know what to put down on a vehicle and how long your loan should be, let’s discuss how to calculate what you can afford each month. Edmunds recommends capping your monthly payment at 20% of your monthly income, but you can easily use Greenwood Chevrolet’s payment calculator to help calculate what your ideal monthly payment should be. If you are ready to start the car buying process, you can get pre-approved on our website.
The new year is the perfect time to fulfill your goal of owning or leasing a brand new Chevrolet vehicle. Let us go the Extra Mile to get your year off on the right foot.
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