Planning for any big purchase is an increasingly important task whether you live in Lanham or Seabrook, Maryland. If you’re budgeting for a vehicle, keep these handy tips in mind.
Key Considerations in Budgeting for a Vehicle in Lanham, MD
A central component of any budgeting endeavor is a catalog of your expenses. You should consider costs like total price, fees, financing loans, insurance, and future maintenance for an auto purchase. Take a closer look at some of the top auto budgeting elements.
Price
Several factors impact the starting price of a car, from make and model to year. Comparison-shopping is therefore vital if you have a set price you want to pay. You should also factor in sales taxes for the overall cost. In Maryland, for example, the sales tax is typically six percent.
Fees
Titling and registration are the most common fees associated with purchasing a new vehicle. In Maryland, the Certificate of Title for a new or used vehicle will cost $100. A two-year registration for passenger cars costs $135 or $187, depending on the vehicle’s weight. The state also requires a vehicle emissions inspection on most new cars. This test costs about $14.
Financing
Most new car buyers will make their purchases through loans. Your auto loan will be a significant monthly expense, so you must negotiate a good deal. Ideally, your loan will have the lowest possible interest rate attached to it. Other factors that can impact the amount you pay monthly are the down payment you offer and the length of the loan.
A larger down payment and longer loan term will reduce your monthly payments. You can also lessen your payments by trading in an older vehicle. A good rule of thumb is to devote 10 percent of your monthly income to your auto purchase or loan.
Insurance
Drivers naturally want the lowest premiums, but state dictates will influence the coverage you are required to purchase. Maryland drivers must acquire policies that include liability insurance. Specifically, the requirements are bodily injury coverage in the amount of $30,000, $60,000 of coverage for two or more people, and $15,000 worth of property damage coverage.
Additional Costs
Auto costs do not end once you have your vehicle. You’ll want to factor in considerations such as fuel costs, parking fees, and future maintenance. Evaluate your daily routine to help determine fuel and parking expenses. Plan on these factors potentially taking up another 10 percent of your monthly budget.
Invest in a vehicle with good fuel efficiency and a strong warranty for the best savings. Put your fuel worries to rest with the zero-emissions Ford Mustang Mach-E. This super-powered auto has a barn-busting fuel economy of 103 miles per gallon. Plus, you’ll get a solid five-year, 60,000-mile powertrain warranty and an ultra-useful eight-year, 80,000-mile emissions defect warranty.
Let a trusted team help you balance your budget. Contact the finance department at DARCARS Ford of Lanham and secure a purchase tailored to your needs and circumstances.
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