How To Set a New Car Budget

Car shopping is at all times a thrilling experience. But before you hit the road and go on with this adventure, you have to figure out primarily how much are you willing to spend in buying a new automobile. Ask yourself to what extent and how much can you shell out for your monthly amortizations or bank loans? Is a new car feasible at this time or you can live with your old car? Those are the questions that you need to answer if you are planning on purchasing a new vehicle.

Though there are many car calculators available via the web to ensure if you can afford the payment systems, here are some useful information in addition to your list.

First and foremost, how much is your first payment or deposit? Nowadays, motor companies are offering affordable down payments as part of their marketing strategy. Because of minimal down payment, some are having trouble in paying the monthly costs in the future. Given that you have extra cash apart from the deposit that the motor company is soliciting, are willing to give it all as initial payment so that your monthly amortization will be lowered? Ask for several computations of possible payment scheme so you can also confirm if you can manage to pay for the vehicle.

Review the agent’s proposal and negotiate for a good discount or freebies. The car agent has the authority to give you a better deal, so don’t be afraid to bargain. If he cannot give you a discount, try to ask for other options that he can free of charge, example of which are car alarms, tire warranty, car accessories, among others. Try checking out other car manufacturers as well and give it a shot if they can offer a better proposal and compare details. But never go back to your agent to say that this car company is offering me with this. Keep it to yourself and just bargain a good deal and take it from there.

Another thing is for you to take a look at the financing banks they are associated with. If you feel that their interest rates are quite high, ask for other bank referrals as an option. The problem might arise when you start having difficulty in paying the finance charges in the end. And banks tend to be strict with these issues. Inquire also if your long time bank can provide you with car loans. You’ll be surprised if they have better offers for loyal patrons.

Since you have that budget by now, stick with it. Of course, it is pleasurable to have a nice and fancy car but it is forever safe if you purchase a vehicle that you can pay in the end. Keep your options open and discuss it with your family members about your plans on acquiring a new vehicle. If the time is not yet right, and you are not convinced with all the marketing tactics, listen to your instincts. You might find a better car agent, a good proposal and great payment scheme later on. Or save more money so you can procure your desired vehicle in the future.


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