The most important part of buying a car for most people is the price. How do you know if you can afford to buy a car? How much can you afford to spend?
First, you have to sort out your personal finances. To do this you need to look at your monthly income and your fixed expenses. How much is left over per month after all of your bills and necessities have been deducted? How much of that amount are you willing to spend on a car? The general rule is to not allow payments to exceed 20% of your monthly income.
Other factors that need to be considered when thinking about the price of your new car are insurance costs, gas costs, and maintenance costs. It is important to calculate how much you can afford in total before visiting dealerships. You don't want to fall in love with a car that you can't afford.
Keep in mind that buying a car at the agreed on price does not mean that is the final price. There are still taxes, fees, financing charges, etc. These will affect the total monthly cost.
Another method is to compare the monthly payments of a new car to the monthly payment you paid for the last car you had. This will give you an idea if you are comfortable spending more or less each month.
To estimate your monthly payment, you can also use an online finance calculator. These calculators will take into account the purchase price, down payment, your credit rating, interest rate, length of the loan, the value of your trade-in, etc.
Really good information. I have some information on my site about buying cars, and selling cars too please visit and tell me what you think! www.johnsmotivation.com
I found this fascinating quote today:
1) Do the salespeople really need to go to the manager for prices, payments, and discounts?ON THE LOT with JOHN RYAN, The most FAQ I have been asked by friends and family about car and truck sales | Buying or Selling cars for profit, Oct 2009
You should read the whole article.
Posted by: John | October 19, 2009 at 12:49 PM