Congratulations! You’ve decided to buy a luxury vehicle. As your local “Acura dealer near me,” we can help determine how much you should spend on a new premium automobile. Contact us at Acura of Limerick to learn more.
To determine how much you should pay for a vehicle, consider the 36% rule. This dictates that you should devote up to 36 percent of your income to all your debt, including a car loan or lease. To apply the 36% rule to your finances, add up all your existing debt, such as your mortgage payment, credit cards, and student loans.
Multiply “.36” by your monthly income, and then subtract the total amount you pay toward debt every month from the result. The residual amount is what you’ll have left over to cover a monthly car payment. Here is what the equation would look like if you make $6,000 per month and you pay $1,600 toward debt: ($6,000 x .36) – $1,600 = $560.
If you have little or no debt, you may want to use the 10-20% rule instead. According to this specific rule, it’s wise to spend no more than 10-20% percent of your income on all your transportation costs. If you make $72,000 per year, this means you should budget $7,200-$14,400 for your total annual automotive expenses.
If you want to see what your loan payment will be for a new Acura, we encourage you to use the Car Loan Payment Calculator on our website. This handy tool will help you see if your upcoming purchase or lease will be in line with the 60% or 10-20% rule.
For more assistance, contact Acura of Limerick. Don’t forget to ask about our current Acura deals when you do!