How to Budget for a New Car Without Overstretching Your Finances

Work Out What You Can Comfortably Afford

Start by reviewing your monthly income and expenses. A simple rule of thumb is to keep your car loan repayments under 15% of your take-home pay. This ensures you still have room for other commitments like housing, groceries, and savings.

Factor in More Than Just the Loan

The cost of owning a car goes beyond repayments. Budget for:

• Fuel – fluctuates but is a recurring expense.
• Insurance – comprehensive cover is highly recommended.
• Servicing and maintenance – new cars often come with capped service plans, but check the details.
• Registration and licensing – yearly fees that add up.

Choose the Right Loan Structure

Every driver’s situation is different. A Perth finance broker can help you compare options such as:

• Fixed vs variable rates
• Loan terms (shorter vs longer repayment periods)
• Balloon payments to reduce monthly costs

At Hanna Lending, we match you with car loans tailored to your budget so you don’t take on more than you can comfortably manage.

Build in a Safety Net

Life happens, interest rates can shift, or unexpected bills can pop up. Make sure you leave breathing room in your budget so you can still meet repayments without stress.

With the right planning and the support of a local Perth finance broker, budgeting for your new car doesn’t have to be overwhelming. Hanna Lending can help you secure a loan that balances affordability with flexibility, giving you peace of mind as you drive away.