For many of us, shopping for a new car like the 2019 Volkswagen Jetta means we have to figure out how to budget and pay for it. While the idea of determining your budget can seem like a daunting process, breaking it down into a few steps removes the mist around the topic. Here at Fields Volkswagen, we compiled a few tips on how to best budget for a new or pre-owned VW.
We recommend starting with the 50-30-20 rule. Break down your take-home pay into three general categories: 50% for needs, 30% for wants, and 20% for savings. Your car falls into the needs category. It’s smart to devote about 10% of the needs category for your monthly car payment.
Now that you know how much you can afford, you’ll want to factor in the total price of your new car. The total value includes everything from the sticker price of the vehicle to the sales tax to the title and registration fees.
Knowing the total cost of the car will help you figure out your potential loan term and monthly payments. Keep in mind that monthly payments also include the principal and interest. Another area that affects your budget is your down payment. A larger down payment will often lower monthly costs.
There are additional ways in which you can save money. One of the best ways to cut costs is to trade in your current vehicle, and put that value toward your new purchase. Of course, we also consistently offer new and pre-owned car deals, helping offset the total price even further.
To learn more, please visit our Daytona Beach Volkswagen dealership as soon as today! We look forward to working with you soon.