Purchasing a new Kia model can be an exciting decision but requires careful financial planning. At Folsom Lake Kia, we are dedicated to providing everything you need to know about your Kia finance options. We want you to experience the joy of driving your new Kia vehicle without worry. Here are some tips on budgeting for your new car near Sacramento, CA.
Understand the Full Cost of Ownership
When buying a new Kia vehicle, you must consider all the associated costs beyond the purchase price. These costs can include insurance premiums, fuel, regular maintenance, and annual registration fees. Addressing these costs upfront can prevent surprises and help you manage your finances better in the long run.
Down Payment and Monthly Payments
The amount of your down payment can affect monthly costs. A larger down payment reduces your monthly payments and overall interest. Take a careful look at your monthly income and expenses to determine how much you can afford to put down and what you can manage for monthly payments.
Apply the 20/4/10 Financial Rule
To manage your finances when purchasing a new vehicle, consider the 20/4/10 rule. This means putting down at least 20% of the vehicle’s price, financing for no more than four years, and ensuring that your total monthly vehicle expenses, including payments and maintenance, do not exceed 10% of your gross income. This will allow you to minimize the burden a car payment will have on your budget.
Get Personalized Kia Financing Assistance Near Sacramento, CA
Our team at Folsom Lake Kia is here to help you finance your next Kia vehicle. Whether you choose a new or pre-owned Kia model, we have Kia finance options to meet your budget and needs. Contact us to get started today!
