How to Manage Your Chevrolet Payment
Cost is undeniably one of the most important factors to consider when shopping for a new vehicle. You want to ensure you can afford the total investment and are comfortable with your monthly Chevrolet payment. We’re outlining some financial basics at Videon Chevrolet.
How Much Can I Afford?
Our financial experts at our Chevy finance center will review your basic buying criteria to help you determine how much of a total investment you can afford.
- Income and work history
- Current expenses and debt-to-income ratio
- Credit history and score
What’s Included in an Auto Payment?
Once you have a total investment in mind, you still want to ensure that you’re comfortable with the monthly payment. Your monthly auto payment includes your total investment (plus any add-ons you opted for), divided over a predetermined term. Your term can be anywhere from two to eight years. Your payment will also include interest, which is a direct fee to your lender.
How Much Should I Budget for Each Month?
Typically, it’s recommended that your car payment isn’t more than 15-percent of your monthly net income. Keep in mind, your debt-to-income ratio, ideally, should be under 36-percent. So, you might need to adjust your car payment if your existing debt is too high. When determining a comfortable car payment, you want to make sure you also factor in the additional costs of owning a car. You will need to register your vehicle, obtain auto insurance, get routine maintenance, and add in the costs of fuel and carwashes. It’s also a good idea to make sure you have money set aside for the unforeseen just in case.
Still have questions? Reach out to our financial experts at our Chevy dealership in Phoenixville, PA to get all the advice you need. We look forward to speaking with you soon!