How Much Car Can You Afford in San Antonio, TX?

Calculating A Budget For Your New Vehicle

How Much Car Can You Afford?

Buying a brand-new vehicle may not always be necessary or affordable for you. At Red McCombs Ford in San Antonio, TX, we understand this and aim to assist you in finding a suitable vehicle within your budget. We offer some useful suggestions to determine your affordability when purchasing a car. You could even pre-qualify online.

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

When considering the total cost of owning a vehicle, it is important to remember that it goes beyond the initial price. Several factors can impact the overall cost, such as taxes and fees (registration fees, premium, and sales tax), maintenance and repairs, interest on financing if you have an auto loan, depreciation (as a new vehicle loses value quickly), and fuel expenses, which will vary depending on the type of vehicle.

Remembering these factors when considering ownership costs can improve financial responsibility.

Determining Your Monthly Transportation Budget

Financial experts advise individuals to allocate only 10% to 15% of their monthly income towards transportation expenses, encompassing car maintenance, insurance, payments, and fuel. Being aware of your affordable price range helps prevent excessive spending on your vehicle, as well as any supplementary requirements it might entail.

Calculating How Much You Can Afford for A Car

To determine your affordable budget for a vehicle, begin by making a list of potential cars you are interested in. Then, calculate the costs of insurance, maintenance, and fuel for each vehicle on your list. Next, subtract this total from your monthly take-home income to determine the amount you can allocate towards a monthly car payment.

On average, car owners reserve $600 to $700 annually for vehicle maintenance, equivalent to roughly $50 per month, as advised by the American Automobile Association. However, it is recommended to set aside $75 per month to accommodate unexpected repair expenses as a general rule.

To determine the cost of fuel, follow these steps:

Calculate the average distance you drive daily.
Multiply the average distance by 30, which represents the usual number of days in a month.
Divide that number by the miles per gallon (mpg) your vehicle achieves.
Multiply the result by the current price per gallon of fuel.
Add an additional dollar to the price per gallon to account for fluctuations.
The formula for the monthly fuel cost is (miles per day x 30 / mpg) x price per gallon.

By following these steps and using the formula, you can calculate your monthly fuel cost accurately.

Find an Affordable Car at Red McCombs Ford

Stop by the Red McCombs Ford dealership in San Antonio, TX, and our team can help you find a dependable vehicle within your budget. You can also speak with our experienced finance department about your available finance options.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, and license charges. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, license and/or $150 documentation fees. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.