Buying a new vehicle is an exciting endeavor, especially when it’s from the luxurious Alfa Romeo brand. But before making the commitment, it’s important that you create an easily-manageable budget to make sure you can comfortably make each payment. Here are some useful tips for budgeting for your new Alfa Romeo car.
Determine Your Monthly Income and Expenses
The two biggest factors in budgeting for a new Alfa Romeo vehicle are your income and expenses. When you subtract your monthly bills and expenses from your wages, do you have enough money to comfortably cover a car payment and insurance policy? How about related expenses, like gas?
After spending money on necessities — food, housing, other bills — will you have enough money to ensure you never miss a payment? It takes more than just a tank of gasoline to keep you on the road, after all.
Understand Your Credit
Lenders use your individual credit score to determine the annual percentage rate (APR) of interest for your financing or lease payment, and the higher your score, the less you must have to pay each month in addition to the principal payment (total price of the vehicle).
A higher APR means you must invest a significantly larger sum in order to own your own vehicle. When buying a new Alfa Romeo vehicle, you’ll benefit greatly from a credit score ranging from good to excellent.
Determine Your Down Payment
A down payment is initial cash or trade-in investment that pays a certain amount of your car’s price in advance. The higher your down payment, the less you’ll pay in total payments. That’s why it’s important to save away a significant sum before committing to a new Alfa Romeo vehicle.
You can find more in-depth and helpful budget calculators online, but once you have this basic information, you can figure out if a new Alfa Romeo vehicle is in your future. Come see our team of friendly professionals at Jake Sweeney Alfa Romeo for additional help and drive away a winner!