How Do I Know How Much Car I Can Afford?

By Product Expert | Posted in Financing on Tuesday, June 9th, 2020 at 6:09 pm
Couple riding in a new vehicle

How to Set a Budget for a New Kia Vehicle 

Kia is known for its affordability – and you get a lot of bang for your buck when it comes to extra features and performance! However, we understand that buying a new Kia can still be a big purchase. To help ensure that you get the perfect Kia vehicle while being comfortable with the price, we are offering some tips on how to set up a car-buying budget. 

Look at Your Household Income 

High-profile financial experts like Dave Ramsey say that your car should not make up more than 50% of your annual household income. So let’s say if your annual household income is $42,000 (this was the median household income for Lehighton, PA during 2014 to 2018), that would mean you should not spend more than $21,000 on a new Kia. The vehicles that would fit in this budget would the 2020 Kia Rio, 2020 Kia Rio 5-Door, 2020 Kia Forte, and 2020 Kia Soul. 

Shop Our Inventory of New Kia Vehicles

Pay Off Some Debts 

To help make paying for a new Kia vehicle even easier, we recommend trying to pay off a small debt or two beforehand. Without those extra student loan and credit card payments, you can handle a car payment more easily. And your credit score will increase so that you might be able to enjoy better financing options for your vehicle! 

Finance Your Vehicle with Us 

Here at Lehighton Kia, our financial experts can help you drive away happy in a new Kia vehicle through either traditional financing or leasing. Many of our traditional financing options include low APR rates (especially during our frequent sales events) and we are flexible when it comes to timelines. Before you visit our dealership, we invite you to apply for online credit pre-approval and use Kia’s payment estimator so that you can get an idea of how much you can expect to pay each month. If you choose to lease, we offer low monthly payments and generous annual mileage allowances. 

To learn more about vehicle financing, please contact us here at Lehighton Kia! 

Woman with a set of car keys