How Much Car Can You Afford in Corpus Christi, TX?
Understanding Your Affordable Car Budget
You don’t want to get stuck paying for a vehicle you can’t afford, so you can depend on our team at Mike Shaw Kia to help determine your budget. We understand your needs are unique, so we will listen to everything you’re looking for in a vehicle and help you find a vehicle within your budget. With our help, you can determine your budget beforehand to experience a stress-free shopping experience. Our team has put together a guide to help you figure out your budget, so keep reading so you can make the best decision based on your needs.
5 Factors That Determine the Total Cost of Owning a Vehicle?
Purchasing a vehicle does not at the sticker price; you’ll also have to factor in the cost of owning a vehicle, which includes five factors:
- Maintenance and Repairs – Your vehicle is a complex piece of machinery that requires regular maintenance to keep it functioning properly, so you’ll want to make sure you consider the cost of maintenance when calculating the cost of ownership.
- Depreciation – Your vehicle will experience the majority of its depreciation in the first year, so you’ll want to factor that into your total investment.
- Fuel – Your vehicle requires fuel, and depending on the make and model can determine how much fuel your vehicle will need.
- Interest on Financing – You will accumulate interest over the length of an auto loan, so consider that when determining your budget.
- Taxes and Fees – You’ll also have to consider registration fees, insurance, and sales tax.
Determining Your Monthly Transportation Budget
When you’re trying to be financially stable, you’ll want to keep in mind the total cost of transportation expenses. Financial experts recommend limiting your expenses, like insurance, fuel, maintenance, and payments, to only 10% or 15% of your income. You determine how much those expenses would be by determining an affordable price range beforehand. You can avoid overspending on your budget by maintaining a reasonable cost for transportation.
Calculating How Much You Can Afford for A Car
If you’re trying to purchase a vehicle, you’ll want to make a list of vehicles you’re interested in and then calculate the cost of maintenance, insurance, and gas. Once you’ve determined the total number of expenses, you’ll want to subtract that number from your monthly income, which can give you a clear understanding of how much you can afford monthly.
It’s recommended by the American Automobile Association to budget $600 to $700 annually or $50 per month for maintenance. You’ll also benefit from saving $75 each month if your vehicle experiences any unexpected damages.
How To Calculate the Cost of Fuel
- Calculate Monthly Distance – Take the number of days in a month (30) and then multiply it by the average distance traveled.
- Calculate Gallons Used – Determine the distance you travel and divide it by your vehicle’s MPG.
- Calculate Total Costs – To determine the total cost for fuel, you’ll want to add a dollar to the current price per gallon and then multiply by the number of gallons needed in the vehicle.
Formula:Monthly Fuel Cost = (Mile Per Day x 30 / MPG) x Price Per Gallon
Find an Affordable Car at Mike Shaw Kia
When buying a car, it's essential to think about its financial impact. Choosing a vehicle that fits your budget can help improve your financial stability. Mike Shaw Kia has a range of new and used cars available within your budget.
