Before you apply for BMW financing, it’s important to have a firm grasp on your budget. Regardless of whether you want to buy a car or if you prefer a lease, you’ll have upfront and monthly expenses. The experts at Fields BMW Northfield have put together this guide for both options.
Budgeting Tips for Buying a Car
Purchasing a vehicle involves a down payment, which is usually about 20% of the sticker price. Additional upfront costs include title fees and sales tax.
Throughout the life of your loan, you’ll pay a principal plus interest every month. The principal is based on the price of the model you choose to buy, and the interest depends on your credit score and macroeconomic factors. To budget for a loan, look at your income, basic monthly living expenses, and your current cash situation to find out how much you can afford upfront and in your monthly payments.
How to Budget for a Lease
Leasing comes with fewer upfront costs. You’ll need to put down a security deposit, the first month’s payment, and some taxes and fees. Monthly lease payments are usually less than loans since leases are based on the vehicle’s anticipated depreciation rather than sticker price. Lower upfront and monthly costs still mean you’ll have to identify what you can afford, but overall lease costs are likely less than purchasing.
Expenses to Consider for Both Loans and Leases
On top of your BMW financing package, you’ll need to budget for basic car expenses like insurance, fuel, routine maintenance, and state and local registration. If your home or work charges for parking, include that in your budget too.
See the Experts in BMW Financing in Northfield, IL, Near Chicago
We offer flexible BMW financing terms for all sorts of budgets and credit scores. Stop by our BMW dealership near Chicago, IL. We’ll help you find the luxury model of your dreams and get a great financing offer!