Calculating A Budget For Your New Car in Boerne, TX

How Much Car Can You Afford?

Purchasing a new vehicle can be daunting, which is why our team at Genesis of NW San Antonio is here to help you every step of the way. We’re dedicated to finding you the ideal vehicle that suits both your needs and budget. We will guide you throughout the purchasing process to ensure a successful and stress-free shopping experience. To make the most out of your visit, we recommend that you have a clear understanding of your budget beforehand, which is why we've compiled a list of helpful tips to help you determine your budget for your next vehicle purchase. You can depend on us to assist you in making a smart decision when choosing your next car.

5 Factors That Determine the Total Cost of Owning a Vehicle?

Before you decide to buy a car, it's crucial to remember that the sticker price does not encompass all the expenses associated with owning it. To get a clear picture of the total cost of ownership, there are five crucial aspects that you need to take into account:

1. Depreciation –It's essential to consider the amount of depreciation when making a purchase to ensure you're getting the most out of your investment.
2. Interest on Financing – Make sure to factor in the amount you accumulate over the length of the loan term.
3. Taxes and Fees – Don't forget to take into consideration additional expenses like insurance, sales tax, and registration fees.
4. Fuel – Don’t forget to factor in the fuel consumption of your vehicle. The amount of fuel your car uses is directly influenced by the make and model you choose.
5. Maintenance and Repairs – One crucial aspect you must take into account when calculating the total cost of owning a car is the upkeep expenses. Neglecting maintenance can lead to costly repairs in the future, so make sure to factor in regular maintenance costs when budgeting for your new car.

Determining Your Monthly Transportation Budget

Managing your transportation expenses is crucial for financial stability. According to financial experts, limiting your monthly transportation expenses, including car fuel, payments, maintenance, and insurance, to only 10% to 15% of your income is recommended. To stay on top of your finances, setting a budget and determining your price range beforehand is essential. By doing so, you can maintain reasonable transportation costs and avoid overspending, helping you achieve your financial goals.

Calculating How Much You Can Afford for A Car

When looking to buy a car, the first step is to make a list of the vehicles that you like. Once you have your list, calculate your monthly insurance, gas, and maintenance expenses and subtract them from your monthly income. This will give you a clear idea of how much money you can allocate towards paying for your car each month. Remember, buying a car is a big investment, so it's essential to take the time to plan it out properly.

According to the American Automobile Association, budgeting around $50 per month or $600 to $700 annually for maintenance can help ensure your vehicle stays in tip-top shape. Plus, setting aside an extra $75 each month for unexpected repairs can provide added peace of mind. By investing in regular maintenance and being prepared for unexpected costs, you can keep your car running smoothly and avoid costly repairs in the long run.

How To Calculate the Cost of Fuel

• Calculate Monthly Distance – Multiply your average daily distance traveled by the number of days in the month (30).
• Calculate Gallons Used – Divide your vehicle's MPG by the distance you travel.
• Calculate Total Costs – Add an extra dollar to the current price per gallon, and then multiply that total by the number of gallons the vehicle requires.

Formula: Monthly Fuel Cost = (Mile Per Day x 30 / MPG) x Price Per Gallon

Find an Affordable Car at Genesis of NW San Antonio

When purchasing a vehicle, it's crucial to consider the financial impact it will have. You can improve your financial stability by selecting a vehicle that fits your budget. Genesis of NW San Antonio offers a wide variety of new and used vehicles that can cater to your budget.