Before you apply for Cadillac financing, you need to know how much you can spend on your new car. Planning out your financing ensures that you don’t spend too much on your vehicle, either at signing or in the long run. As part of our Cadillac Financing Tips series, learn all you need to know about budgeting for a new car at Fields Cadillac Jacksonville.
How Much Should I Put Down?
When you apply for financing, you’ll want to know how much you’re able to put down on a new car. A down payment reduces the interest you’ll pay over time by knocking out some of the principal on your loan. It’s recommended that you put down at least 20% of the vehicle’s purchase price at signing. If you can at all afford it, you can always put more down — but be sure not to overstep your limit.
What Am I Paying For?
There are several things to budget for when you purchase a new car, including:
- Monthly finance payments: This is how much you’re paying on every loan payment, including applicable fees.
- Resources: You’ll want to budget out your expected monthly gas and parking bill, as well as set aside additional cash for oil and other fluids.
- Service and repairs: You should set aside some money for routine services and emergency repairs.
How Much Should I Spend Per Month?
The general rule is to only spend more than 15% of your monthly post-tax income on your vehicle. Our dealership can help you figure out exactly how much you can safely afford to spend each month.
Learn About Cadillac Financing in Jacksonville, FL
Our Cadillac financing team is ready to assist you with any financial questions, from budgeting to increasing your credit score. Contact Fields Cadillac Jacksonville today to learn more!
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