?If you're shopping for a new vehicle, you need to make sure that it fits into your budget. Fortunately, our Alfa Romeo financing experts here at Helfman Alfa Romeo of Houston make it easy to see how a new luxury car can fit into your monthly budget.
How Financing Works
When you finance a car, you put down some money and take out a loan covering the rest of the vehicle's cost. Usually, the down payment accounts for 20 percent, which means that you're paying off that remaining 80 percent of the cost, plus interest, each month.
Certain terms of your loan can affect how much you end up paying every month. The APR, or interest rate, is one such factor. The lower your rate, the lower your monthly payments will be.
There's also the loan term, which is how long you have to pay off your vehicle. Five years is a common loan term, but you may be able to opt for a shorter or longer term. A shorter term means higher monthly payments, while a longer term means the opposite.
Considering Your Budget
Knowing how much you'll be paying for your new Alfa Romeo helps, but you need some additional information to figure out if the car fits into your budget. For example, there are insurance costs to think about. You also need to consider fuel costs every month, which will be directly impacted by the car's fuel economy ratings. You may also need to set money aside for maintenance and repairs.
If you're in the market for a new luxury car that offers plenty of driving thrills, visit our Alfa Romeo dealership serving Pearland, TX. We'll help you find a vehicle you love and a monthly loan payment that you can afford.
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