When planning for a new car, making sure you have enough money not only to afford the purchase but to maintain it as well, should be the first thing on your mind. Creating a budget for a new car purchase doesn’t have to be complicated. There are numerous budgeting programs that serve that very purpose. But before you start, here are a few things you need to assess:
1. Decide on the car you want – the make, model, and color – and what kind of monthly payment you will need to make for that specific car. Be realistic. Buying a car that’s out of your pay grade will only land you in unnecessary debt.
2. Remember, the asking price of a car is just the tip of the iceberg. While being able to afford a car at its selling price, having the money to maintain it and pay for the costs of owning it is just as, if not more, important.
3. Factor in costs like fuel prices, repairs, taxes, and other expenses you’ll have after buying the car. Also keep in mind that the moment you buy a car, it starts depreciating immediately.
4. Go through your monthly expenses and see which ones you can cut down on. Whether it’s your entertainment or vacation expenses, you’ll need to make some room for the new car, doing this early on can save you money.
5. Determine what kind of car insurance you want to get and run the numbers on different websites to compare plans. Once you have the budget for the car purchase, the next thing you need to do is find a matching car that offers best value for your money. We can help you find the best dealer offers by comparing the packages side by side.
Let us know of any tips on budgeting for your new car that you find useful in the comments below:
