Jeep® Finance Tips: How to Budget Your Car Purchase

April 5th, 2021 by

Jeep Finance

Have you eye on a new Jeep® SUV at Hillview Motors? As you carefully review your options to decide your favorite pick, there’s another big decision you need to make. How do you plan to pay for it? The experts at our Jeep finance center have a few tips to help you budget for your car purchase.

Get Approved

You may have your heart set on a specific vehicle, but it’s a good idea to first see what you’re approved for to make sure your finances and the investment are aligned. To be approved, you’ll be asked for your basic buying criteria. You can fill out an application online or chat with the experts at our Jeep finance center.

  • Proof of income and work history
  • Debt and debt-to-income ratio
  • Credit score

Set an “Ideal” Monthly Payment

Once approved, you still need to ensure that you’re comfortable with the monthly payment for your dream vehicle. You can use an auto loan calculator to help get an estimate on your monthly payment.

Experts recommend you spend no more than 10-20 percent of your monthly income on an auto payment. However, it’s also advised that your loans don’t equal more than 36 percent of your income. So, your numbers may vary depending on your existing debt.

Don’t Forget Expenses

Your auto payment is just part of your vehicle expenses. Don’t forget, you also need to factor in additional expenses. You need to insure your vehicle and get it registered. Don’t forget to add in costs for fuel and maintenance. With a vehicle, it’s always a good idea to have an emergency fund for repairs too, just in case.

Have more questions? Reach out to our team at our Jeep dealership in Greensburg, PA. We’re happy to help!

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