How to Budget Your Next Car Purchase

Have you been considering buying a new vehicle? A car is a major purchase, and the investment is certainly something you want to plan for.

Our Mercedes-Benz finance experts have a few tips to help you budget for your next car purchase at Keyes European.  

Set a Budget  

Price is a major factor when it comes to buying a vehicle. You want to make sure that you get what you need out of your new vehicle, but you also don’t want to stretch yourself too thin.

Look at your income, as well as your existing expenses. Experts say the ideal debt-to-income ratio is under 36 percent. You also want to make sure you feel comfortable with your monthly auto payment.  

Check Your Credit Score 

When financing a new vehicle, your credit score can make a big impact. A higher score can, oftentimes, result in more loan offers. Plus, it will give you a lower interest rate which can end up helping you save significantly on your total investment.

It’s a good idea to check your score before you buy so you don’t get any unwanted surprises at the dealership. 

Get Pre-Approved 

Keep in mind that even if you think an investment works for your budget, that doesn’t necessarily mean you’ll get a loan for that amount. By getting pre-approved, you can know for sure if you will qualify for the loan you need. You can easily apply for a loan on our website and determine your eligibility before you even begin to shop.  

Still have questions about your financing options? Reach out to our Mercedes-Benz dealership in Van Nuys, CA to speak with our financial experts. We’re happy to help you get into the car of dreams!