Buying a car can be a memorable experience. What you don’t want to remember, however, is feeling worried about how you’re going to pay for that new car. There are several ways to make a budget, stick to it and regulate your savings efficiently to successfully manage a new car payment. We’ve gathered a list of tips to stay on top of your budget when buying a new car.
Budget Before You Buy
Most car buyers pick out a new car and then adjust their budgets based on the monthly payment. The best way to go about a new car purchase is to create a budget before you go car shopping. This way, you’ll know exactly what you’re able to set aside each month. Having a budget and tracking your spending can save you money in the long run.
Save for a Large Down Payment
The larger your down payment is the lower your monthly bill will be. Typically, buyers have a downpayment of 10 to 15% of the car’s asking price. This can include a trade-in value of your old car. Follow our Car Buying Tips Pinterest Board to learn the best times to buy a car and how to get the most for your money.
Get the Most From Your Trade-in
Do your research to find out how much your current car is actually worth. Clean you car as best you can or get it detailed before bringing it in; you want it to look as close to brand new as possible. A trade-in should not have any personal belongings left in it and should be ready for the dealer’s lot as soon as you drive up. Sites like Kelley Blue Book can give you a rough estimate on how much your car is worth.
Base Your Search on What You Can Afford
If you’ve set yourself a budget for a car then it’s time to create a list of priorities. Separate your wants and needs in a new vehicle and order them in importance. You may have to make sacrifices, so it’s best to determine what is an absolute must ahead of time.
Understand the Total Price of a New Car
Your final costs at the end of the day will be higher than the sticker price. You have to take into account sales tax, license and registration fees, and any additional add-ons like extended warranties. Also, keep in mind the costs of insurance, gas and potential repair costs. Remember to leave some wiggle room in your budget for the little things.
The perfect car comes with time. Do your research and buy what you can afford. Your car payment shouldn’t be a burden to your budget. You should feel proud and excited about your new purchase. Let us help you make the process easier and make you feel comfortable during the budgeting process. Shop at Kuehn Motors so you know you’re getting the best deals around.