How to Budget for a New Nissan

May 2nd, 2019 by

At Fred Martin Nissan, we understand that buying a new set of wheels can be both an exciting and trying time. While you’re thrilled to be taking home a new car, you also may be worried about the price. However, there’s no need to fret! Here’s how to set a budget for your new Nissan car, truck, or SUV.

Find Your Optimal Budget

If you’re worried about spending more than you can afford, we recommend finding your ideal auto payment budget. Many experts recommend that you pay no more than 15 percent of your gross pay, or 20 percent of your take-home pay, on a car each month. You also need to factor in your down payment, which should be at least 20 percent of the purchase price. A substantial down payment can help lower your monthly costs and interest rate, which only saves you money in the long run.

Estimate the Value of Your Trade-In

After you figure out how much you should be spending on a car payment every month, estimate the value of the vehicle you plan to trade in if applicable. You can use our online Kelley Blue Book tool to glean a rough estimate of your current car’s value. This sum can be put toward the down payment, or scattered over several monthly installments. It’s important to note that an official value will be provided with an in-person appraisal.

Review Your Budget

Review your current budget to determine what funds you have available every month for a car payment. This includes your rent or mortgage, utilities, and other living expenses, as well as debt payments you are responsible for making.

Once you determine the amount you’re comfortable and able to spend on a monthly basis, visit our Ohio Nissan dealership to chat with our financial experts. We can find a financial plan that works for you!

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