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Buying A Car: How Much Can I Spend?

When it's time for a new car there are so many factors to think about. Not only do you have to be mindful of the car purchase price, but you also have to factor in what the cost of car insurance will be. Buying a new car can be overwhelming, but it doesn’t have to be.

Ensuring that you find the right car for your budget can be easy with these great money-saving tips.

Calculate Monthly Auto Expense

Before heading to the dealership or car lot, it’s important to figure out how much you can afford as a down payment. From there calculate 20 percent of your net income. This should be the maximum amount you want to spend on monthly auto expenses such as car payment, gas, car insurance, maintenance, etc.

Richard Dean Insurance recommends checking out online tools, such as gas and loan calculators. These can help you estimate most monthly auto expense costs, but contact your auto insurance agent to get an estimate on car insurance.

Strict Budget Options

If you’re working on a strict budget, consider looking at a lower-priced used car that runs well. You will end up spending less on upfront costs and saving yourself from the rapid depreciation period of a new car.

Or if you don’t need a big car, consider looking into compact cars. They’re easy to manage and are great on gas. However, keep in mind that saving down the road may mean spending a little bit more upfront.

Shopping For Car Insurance

Once you’ve decided on a budget the next step is to begin shopping for car insurance. it's important to remember that you usually get lower car insurance premiums when you have a lower overall monthly car expense. Less expensive cars are usually less expensive to insure, and having anti-theft devices, airbags, and antilock brake features could help reduce your auto premium even further.

Keep in mind too that most car insurance companies offer safe driver discounts, which could save you up to 25 percent on your car insurance premium.

Need help figuring out what car insurance plan is right for you? Call and speak to one of our experienced car insurance agents today.



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