In a recent blog post, we discussed the differences between buying and leasing an automobile. If you’re thinking about taking home one of the new Porsche cars in our inventory, but can’t decide whether you want to lease or buy, we invite you to contact our Jacksonville, FL Porsche finance center so we can help.
Whether you lease or buy a new Porsche like the Porsche Panamera, it’s advisable to create a car budget to avoid overspending. Luckily, there are some simple rules of thumb you can follow as you’re making your budget.
10 – 20 Percent Rule
Frugal motorists typically dedicate about 10 percent of their monthly income to their loan or lease payment. If you earn $10,000 per month, this means you’ll have $1,000 per month to apply to a loan or lease payment, assuming you only have one monthly car payment.
While it’s great if you can abide by the 10-percent rule, many drivers actually devote about 20 percent of their monthly income to their transportation expenses. So, 20 percent might be a more realistic number to use when you’re creating your car budget.
36 Percent Rule
If you’re concerned about adding too much to your total debt when you buy or lease an automobile, you may want to stick to the 36 percent rule. According to “Consumer Reports,” it’s wise to spend no more than 36 percent of your total monthly income on debt.
List all your debts, including your mortgage or rent, credit cards, and outstanding loans. Add them up and then subtract the total from 36 percent of your gross monthly income. The result will be the amount you should be able to add to your monthly debt payments.
To learn more about creating a car budget, visit our Porsche dealership serving St. Augustine, FL today.