How many numbers are in $44,995, the starting MSRP of the 2017 Ram 1500 Rebel? Or $35,995, the base price of the 2016 Dodge Challenger R/T Shaker?
If you said five, you’re right – in a way. Technically, there are a lot more, though.
Several numbers go into the purchase of a new vehicle, according to Military.com. For instance, the site says, “Keep your total vehicle expenses less than 20% of your net household income.” Those include gas and maintenance – not just the monthly car payment.
When you take all of your monthly debt payments, such as those that you’d pay for that new Ram 1500 Rebel you’ve been eyeing, and the ones you’re making on your mortgage or rent, your credit card, or student loans, they should only amount to less than 36 percent of your household’s gross (as in pretax) income. And don’t forget about taxes and fees, insurance charges, and gas prices.
Another important price to keep in mind is how much you’d get for your old vehicle by selling it yourself as opposed to how much a dealership would give you for it as a trade-in. Just as there’s more to paying for a new vehicle than its sticker price, there’s more to keep in mind when you’re budgeting for one. Hit the link below for more tips.
Derek Shiekhi's father raised him on cars. As a boy, Derek accompanied his dad as he bought classics such as post-WWII GM trucks and early Ford Mustang convertibles.
After loving cars for years and getting a bachelor's degree in Business Management, Derek decided to get an associate degree in journalism. His networking put him in contact with the editor of the Austin-American Statesman newspaper, who hired him to write freelance about automotive culture and events in Austin, Texas in 2013. One particular story led to him getting a certificate for learning the foundations of road racing.
While watching TV with his parents one fateful evening, he saw a commercial that changed his life. In it, Jeep touted the Wrangler as the Texas Auto Writers Association's "SUV of Texas." Derek knew he had to join the organization if he was going to advance as an automotive writer. He joined the Texas Auto Writers Association (TAWA) in 2014 and was fortunate to meet several nice people who connected him to the representatives of several automakers and the people who could give him access to press vehicles (the first one he ever got the keys to was a Lexus LX 570). He's now a regular at TAWA's two main events: the Texas Auto Roundup in the spring and the Texas Truck Rodeo in the fall.
Over the past several years, Derek has learned how to drive off-road in various four-wheel-drive SUVs (he even camped out for two nights in a Land Rover), and driven around various tracks in hot hatches, muscle cars, and exotics. Several of his pieces, including his article about the 2015 Ford F-150 being crowned TAWA's 2014 "Truck of Texas" and his review of the Alfa Romeo 4C Spider, have won awards in TAWA's annual Excellence in Craft Competition. Last year, his JK Forum profile of Wagonmaster, a business that restores Jeep Wagoneers, won prizes in TAWA’s signature writing contest and its pickup- and SUV-focused Texas Truck Invitational.
