How to Create a New Car Budget

May 8th, 2019 by

There are many things to consider when you’re in the market for a new vehicle. Not only are there various special features and safety systems to choose from, but you also want to be able to pay for it every month. At Joseph Toyota of Cincinnati, we are here to help you put together your car buying budget.

No matter which new Toyota or pre-owned vehicle you’re interested in, you want to take a look at the sticker price, but keep in mind it’s not the final value of the vehicle. Overall pricing will include elements like sales tax, title and registration fees, and anything extra you want such as extended warranties.

As a general rule of thumb, many experts say that a monthly car payment shouldn’t be more than 15% of your gross pay or 20% of your take-home pay. Additionally, the down payment should be at least 20% of the purchase price. A handy way to supplement the down payment is to trade your current vehicle in. You can get an idea of what it’s worth right here on our website with our trade-in tool.

To assist in helping you determine your ideal monthly installment, we offer a payment calculator tool on our website. The form asks for the vehicle price, interest rate, loan term, down payment, and trade-in value, and then it will calculate the payments for you.

Visit Joseph Toyota of Cincinnati today at 9101 Colerain Avenue in Cincinnati, OH to go over your budget and buying or leasing needs. If you have questions on our selection of new and pre-owned Toyota models or Toyota financing, simply call our friendly sales team at (513) 385-1800.

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