Tips to Budget for a New Subaru

Before you do anything else, you will need to calculate your take-home income, which is the amount of money you make after taxes are taken out. The vast majority of financial experts will recommend spending between 10% and 15% of your income on transportation costs. This will include your car payment, insurance, and gas. For example, let's say your take-home is $4,000 a month. Then you should spend between 400 and 600 dollars on transportation. We should also mention that these figures are a guideline, and depending on your income and expenses, you may have to budget for less. For instance, if you live in an area with high housing costs, you will need to spend less on your vehicle.

If you have a lot of debt, including student loans, medical bills, or high credit card balances, those payments are sure to consume a large portion of your income. Therefore, you should pay down as much debt as possible before purchasing your new car, as it will consume a lot of your car-buying budget. You also might want to contact the places you owe money to and try to set up a payment plan so your budget will be balanced when you go out to get a new Subaru. By paying off your debt, you will also improve your credit score, allowing you to check out a more comprehensive range of Subaru's.

You might want to choose to finance your Subaru with the purchase of a loan. When you apply for a loan here at Reedman-Toll Subaru of Exton, our team will immediately review your application and credit score. When your loan gets approved, the interest rate will be set. The rate will be based on your credit score and help determine your repayment amount. Your interest rates will also affect your monthly payment and total repayment costs. Those with a lower rate will spend less throughout their loan.

All drivers in the state of Pennsylvania must have liability car insurance, and they can opt for collision and comprehensive coverage for some extra protection. The rate of your insurance premium will depend on the type of car you own, your age, driving history, location, selected coverage options, and the number of miles you drive. You need to remember that the kind of Subaru you drive will affect the amount of insurance you will pay as newer and more expensive Subaru's will cost more to insure, though there are some expectations.

Now you might not be thinking about your new vehicle's maintenance and fuel costs immediately; you will eventually need some maintenance done! Your default maintenance will cost around nine cents per mile. If you drive 12,000 miles annually, you can expect to pay around $1,080 annually. Do you commute to school or work? Then you are going to think of the fuel costs. According to the available statistics, the average person will spend about $2,094 on gas yearly, but if you enjoy trips during the summer months, that cost will generally be higher. If you want to add some more dollars to your account, get a car with a smaller motor that will burn less fuel!

Once you have successfully budgeted your money, its now time to choose your next vehicle! Here at Reedman-Toll Subaru of Exton, we have a wide range of new Foresters, Legacys, and Crosstreks for you to see and test drive. If you have any questions about any of the vehicles on our lot, then be sure to ask one of our outstanding sales team members, who will be more than happy to answer any questions you may have. If you find something you like, check out our finance department, where our team will work with you toward a deal you will love. You can also view our complete Subaru inventory here on our website!