Driving a new Subaru car off the lot of Herb Gordon Subaru is a thrilling prospect. But before doing so, you have to first ensure that a new car will fit into your budget. Whether this is your first time buying a car or you’re a seasoned veteran, budgeting for one can be difficult.
Here at our Subaru finance center, our professionals have a few tips on how to budget.
Budgeting Guidelines
Personal finance professionals recommend following a guideline called the 50-30-20 rule, which divides your take-home pay into three main general spending categories:
- 50 percent for needs: This includes housing, food, and transportation, which is your monthly car payment and related automobile expenses
- 30 percent for wants: Includes entertainment, travel, and other nonessential items
- 20 percent for savings: Includes credit cards and meeting long-term financial goals
While a car payment generally fits into the “needs” category, if you want a more expensive car, part of your car payment could also extend to the “wants” category as long as you keep your budget balanced.
Some new buyers forget that the car payment isn’t the only expense related to buying a new car. There are also additional expenses that you’ll have to make, including:
- Gasoline
- Insurance payments
- Repair and maintenance expenses
Car Payment Calculator
Here on our website, we have a handy car payment calculator that helps buyers fit a new Subaru car into their budget. To use it, simply input the price of the car, your down payment, the APR, loan term, and the tool will tell you your estimated monthly payment.
Get more tips on budgeting for a new Subaru car here at Herb Gordon Subaru.
