Spring Car Buying Season Tips
April through August are consistently among the most popular months for purchasing new cars and trucks, according to a news release by the National Automobile Dealers Association (NADA). With an average of 7.6 million new cars and trucks purchased during this time period each year,
When you consider maintenance, insurance, and gasoline, your vehicle-related expenses end up being one of the largest chunks of your budget — and many of those expenses change as the vehicle gets older, it’s vitally important to determine how much car you can afford.:
- Develop a monthly budget. If you haven’t done this already, now is the time to track the income you’re bringing in, and the expenses you have going out.
- Examine your existing automobile expenses. From your budget, break out the following expenses:
- Monthly payment
- Monthly gasoline expenses
- Average maintenance expenses
- Property taxes (if applicable)
- Determine your down payment. If your goal is to lower your monthly payment, a good way to do this is to put more money down in the beginning.
- Shop around for competitive financing. Research various financing options, including dealerships, banks, credit unions and financing companies. In this competitive market, you will be given a good opportunity to find an option that works well for you.
- Estimate a monthly payment for your new car or truck.
- Compare all expenses between your existing vehicle, and the one you’re considering.
Source: Road & Track