How Much Car Can You Afford in Owensboro, KY

Don Moore Toyota can help you find a vehicle that fits your needs and budget without purchasing a new model. Our team is reliable when it comes to guiding you through the process of purchasing a vehicle. Get help determining your budget for your next vehicle purchase with these tips.

5 Factors That Determine the Total Cost of Owning a Vehicle?

The first step in buying a vehicle is understanding that the price tag doesn’t cover all ownership costs. There are five factors that affect the total cost:

1. Depreciation: New vehicles depreciate the most in the first year after purchase, which is essential to consider for the total cost of ownership.
2. Interest on Financing: If you finance a vehicle, the auto loan will accrue interest over time.
3. Taxes and Fees: Expenses like insurance, sales tax, and registration fees affect vehicle costs.
4. Fuel: Your vehicle choice impacts the fuel cost it requires.
5. Maintenance and Repairs: Make sure to factor in auto maintenance costs to keep your vehicle running smoothly.

Calculating total ownership costs requires considering these factors to improve financial responsibility.

Determining Your Monthly Transportation Budget

Financial experts advise that transportation costs, such as insurance, car payments, fuel, and maintenance, should not exceed 10% to 15% of monthly income. Knowing your price range is important to prevent overspending on a vehicle.

Calculating How Much You Can Afford for A Car

To determine your vehicle budget, you should begin by creating a list of vehicles that catch your interest. Find your monthly car payment by subtracting maintenance costs, fuel, and insurance from your monthly income.

Car owners usually budget around $600 to $700 per year or approximately $50 per month for vehicle maintenance, as stated by the American Automobile Association. It is recommended to budget $75 per month for unforeseen repairs.

How To Calculate the Cost of Fuel

• Calculate Monthly Distance: To find your monthly distance, multiply your average daily distance by 30 days.
• Calculate Gallons Used: Divide the total distance traveled by your vehicle’s MPG to find your monthly gas consumption in gallons.
• Calculate Total Cost: Multiply the number of gallows by the current price per gallon plus one dollar to account for potential fuel price fluctuations.
• Formula: Monthly Fuel Cost = (Mile Per Day x 30 / MPG) x Price Per Gallon

Find an Affordable Car at Don Moore Toyota

Choosing a vehicle that fits your budget can have lasting financial consequences. Calculate your vehicle ownership expenses and determine affordable monthly payments using provided guidelines. If you’re looking for a wide range of new and pre-owned vehicles, make sure to stop by Don Moore Toyota. Our team of experts will assist you in finding the perfect vehicle that fits both your needs and budget.