When buying a new car, there are many factors to consider.
The car needs to fulfill your wants, needs, and lifestyle demands.
Also, you’ll want to consider the resale value, costs of ownership, desired features, incentive and trade-in options, and pricing and financing.
What should I look for in buying a new car?
10 things you need to know before buying a car
- Think about financing. Prior to visiting any dealership, have a sense of what kind of deposit you can put down and what monthly payment you can afford.
- Check your credit score.
- Shop around.
- Compare prices.
- Research your trade-in’s value.
- Test drive potential purchases.
- Look at car histories.
- Find repair records.
How can I get a car with no money down?
You could put down even less, if you want, or buy a car with no down payment, but the fees and rates are higher. If you can, wait several months before you buy your car so that you can save up for the down payment. Use that time to boost your credit score, so that auto dealers may be more willing to lower their rates.
How much should I spend on my next car?
It all starts with what we call the 20/4/10 rule, which says you should: Make a down payment of at least 20%. Finance a car for no more than four years. And not let your total monthly vehicle expense, including principal, interest and insurance, exceed 10% of your gross income.
What is a good price for a first car?
For many people I think that will be between 10–15 percent of your income. So if you earn $25,000 a year, that’s going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that’s a used car for around $10,000 or $12,000. (Yes, this is the harsh reality of being good with money).
Photo in the article by “President of Russia”