Buying a car is an important decision that deserves consideration and planning. When you choose a car, you have to think about many variables, which include your budget and your needs.
First of all, you need to take a good look at your savings, your income and your credit, and decide how much money you could spend on a car. It’s important that you consider that a car will bring many additional expenses to the ones you have now.
When you buy a car, you’ll be asked to make a down payment on the total cost of the car. It’s recommended that you pay at least 20% on its value. For the rest, you can take out a car loan, which you’ll pay off within a fixed term.
Car loans accrue interest, so you should wait if you’re expecting an additional income in the near future. This way, you’ll be able to put down a larger down payment and reduce the total car loan cost.
Each car brand offers many models with all sorts of features and optional accessories. Of course, the more basic the car is, the cheaper it’ll be. This said you should list what you need in a car and what you’d like to add and balance your options. Stay realistic and remain below your initial budget.
In addition to the amount that you’ll have to put as a down payment and your car loan’s fees, you have to take the car’s expenses into account. These include gas, repairments, insurance and other monthly payments.
That’s why it’s very necessary to compare the cars’ gas mileage. In the long term, this can save you a lot of money, mostly due to the unsteady fuel prices.