Chevrolet Financing Tips: How to Budget for Your Car Purchase

When you’re planning for a vehicle purchase, whether it be a new or pre-owned model, it is important to create a realistic budget. Exploring your Chevrolet financing options will help you understand the ins and outs of car buying and give you an idea of what you can afford. Visit Mauer Main Chevrolet to learn more.

Monthly Payments

Start by compiling a list of all of your monthly bills. This will give you an idea of the total net income plus the monthly bills other than vehicle expenses. Lenders recommend spending no more than 10 percent of your monthly income for a vehicle payment. Additionally, you should take into consideration the other costs of maintaining your vehicle such as insurance, gasoline, registration fees, and service. Combining these costs with your monthly payment should be within 15 percent of your monthly income at most.

Down Payment

The amount you put down at the time of purchase should generally be about 20 percent of the total vehicle cost. Once the down payment is applied, it lowers the amount you need to borrow, meaning you’ll pay less monthly and less in interest over time.

Loan Terms and Credit Score

Your credit score affects the terms of your loan. If your credit score is not the greatest, you will pay more in interest over the life of the loan. A shorter-term loan will also save you interest since it will take less time to pay it off, but don’t bite off more than you can chew. Be sure you can afford the monthly installments.

Explore Chevrolet Financing in Anoka, MN

To learn more about Chevrolet financing visit our Anoka, MN, Chevrolet dealership. Arming yourself with the aforementioned information will provide a pleasant car-buying experience. Speak with our expert financial team today!