Buying a car is a long-term investment that can be overwhelming at times, especially if you are committing yourself to a strict budget. Whether you are a recent graduate or are well-established, buying a new or used car isn’t cheap.
There are strategies to use before, during and after the car purchasing process that will help save you money upfront and in the long run. The most difficult part of the car buying process isn’t necessarily test-driving a handful of cars, it is typically determining how much you can afford to spend.
Create A Household Budget
Hopefully, you already have a solid budget set for yourself each month. Now it is time to narrow your scope. Make an inventory list of net income versus expenses in your house alone. Include everything from household supplies, groceries, bills (like monthly car insurance), and then calculate how much money you have left after expenses have been paid. This will help determine how much money you can afford to spend making car payments each month.
Research, Research, Research!
After you have made your household budget, it is time to thoroughly research what you can actually afford to test-drive. It is important to research every aspect of what you might be purchasing, from functionality of a car’s parts, gas mileage and upkeep. Next, make a list of things you are wishing to have in your car, like a satellite radio, navigation or a plush interior. Be flexible with this – you might have to make sacrifices to make sure the new car falls into your budget. However, the more you research and weed out your necessities from your wants, the better chances you are at finding a car that will match your lifestyle.
Say No, Don’t Budge
Now that you have completed your research, you are most likely ready to hit the streets to test out the list of cars you are interested in. It is during this part of the process that our emotions tend to get involved. We might fall in love with the character of a car as opposed to it matching our list.
However, you know what you can and cannot afford and if you follow the previous steps, you have a list that separates your needs from your wants. At this point, it is up to you to stick to the budget!
We understand that buying a car can be time-consuming and stressful. Because of that, we partner with a car-buying service that can take the stress and hassle out of purchasing a vehicle.
Call us today at 800-835-3400 to learn more about our services!