How to Budget Yourself For a New Toyota

May 2, 2019

Classic Toyota is home to a vast collection of new and pre-owned Toyota vehicles and a team of automotive professionals who will go above and beyond to satisfy all of your car-related needs. When our customers visit our Toyota dealership to pick up a new car, some of the biggest questions they have to revolve around budgeting.

Budgeting for a new car can seem pretty complicated. Between financing options, and determining the value of a potential trade-in, there is a lot to take into account. Fortunately, it doesn’t have to be as intimidating as it first may seem to new car buyers.

First things first, when you purchase a new Toyota, chances are you will need to acquire financing. Financing is done through a financial institution and is essentially a loan you can use to pay for the full price of the vehicle. The monthly payments you make on your car, end up going to this financial institution and in most cases include some percentage of interest.

When purchasing a new car, we recommend that you offer up a down-payment of some kind. A substantial down-payment can lower your month-to-month payments, and in some cases can make paying off the car much easier than it would have been otherwise. You can also trade-in an older vehicle and use that value towards the value of your new car.

Every auto loan comes with an expected term limit, which can range anywhere between 24 and 72 months; however, the average auto loan term length is 68 months. Typically the longer your term length, the lower your car payment, however, that is subject to change.

Whether you’re looking to purchase a new Toyota Prius, or want to budget for something pre-owned, our team at Classic Toyota are excited to help. We’ll walk you through every step of the car buying process and help you find a car and financing plan that fits all of your needs.