Tips for Creating a Car Budget from Our Burlington, MA Mercedes-Benz Dealership

September 19th, 2019 by

Whether you’re looking for new or pre-owned Mercedes-Benz cars for sale, you may wonder, “Is there a Mercedes-Benz dealer near me who can help me make a car budget?” Having been Burlington, MA Mercedes-Benz dealers for as long as we have, we know all the tricks for making a budget to buy one of our new or pre-owned luxury vehicles.

To make a car budget, you should start by taking a look at your income. In general, it’s wise to spend no more than 10-20% of your monthly income on your vehicle. If you’re going to have more than one car payment per month, the total of the payments you make shouldn’t exceed 20% of your monthly income.

You should also look at the amount you spend on debt every month. It’s wise to devote no more than 36 percent of your gross income to debt service. Add up all the debt payments you make every month and subtract that total from 36% of your monthly income. The result will be about what you can comfortably afford to pay monthly for a new or new-to-you vehicle without devoting more than 36% of your gross income to debt.

It’s important to consider some things you can do to make buying a car more affordable. One thing you can do is trade in your current automobile and add the proceeds to your down payment. If you want to reduce your monthly payments, you can request a longer term to pay off your loan. Drivers who want to pay less overall are advised to talk to the experts in our Mercedes-Benz finance center near Concord, MA about a shorter-term instead.

For more tips about creating a car budget, contact Mercedes-Benz of Burlington or visit our convenient location at 80 Cambridge Street in Burlington, MA.

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