Buying a car can be thrilling and entertaining, but it can also be frightening, especially for first-time buyers. It’s easy to picture yourself driving off the lot and into the sunset in that gleaming new car, but it’s equally crucial to consider your long-term financial obligations and lifestyle commitments. Buying a car is one of the most significant financial commitments a person makes, second only to purchasing a home. Purchasing a car is not just a huge financial commitment but also a long-term one. Follow these auto-buying recommendations to ensure you get a car that you can afford and that you’ll be happy in the long run.
Find the Magic Number
Cars exist in a variety of colours, sizes, and price ranges. Many people make the mistake of adjusting their budget to accommodate the payment of the car they truly desire, but this can lead to severe financial problems in the future. To establish your magic number or the monthly payment you can afford, you must first create a car-buying budget. This will help you narrow down your options to cars that are within your budget and fit your lifestyle. This assures that you’ll be satisfied with your purchase in the long run. Determine your monthly household income (what you take home after taxes) and monthly expenses first. The spending list should contain everything, no matter how tiny, such as your phone bill, savings or retirement fund, rent or mortgage payment, date night, and even that mid-day trip to the work vending machine.
After determining your monthly budget, you must consider not just how much you want to spend but also how much you can really afford to spend. Keeping your budget in mind, a good rule of thumb is to not spend more than 20% of your monthly salary on a car payment. So, if you make $3,000 a month, your car payment shouldn’t exceed $600. This will help ensure that you can afford all of your other monthly expenses while still making your car payment on time.
Necessities vs. Desires
Once you have an idea of how much you want to spend on a car, it’s time to begin the process of car shopping. Start by differentiating between what you need and what you want in a car. The needs are the basics that are required for your lifestyle, such as four doors if you have a family or all-wheel drive if you live in a snowy climate. On the other hand, wants are features that would be nice to have but are not necessary, like heated seats or a sunroof.
Making a list of your needs and wants will help you narrow down your search to specific car models that fit both criteria. It’s important not to get too caught up in the features and lose sight of your budget. Remember, a car is a serious long-term commitment, and great care should be taken when choosing the perfect one for you.
Stay Safe and Secure
Finally, before signing on that dotted line, it’s important to ensure that the car of your dreams is safe and secure. To help find a reliable used model, utilise online resources such as consumer reports, safety recalls, and vehicle history reports. Once you have a few models in mind, schedule test drives with each one to get a feel for how they handle. Pay close attention to the car’s brakes, steering, and acceleration during your test drive. Also, be sure to check the interior for comfort and the exterior for any cosmetic damage.
When you’re satisfied with the car you’ve chosen and have taken it for a test drive, it’s time to begin negotiating the price. This can be one of the most daunting steps in the car-buying process, but don’t be afraid to haggle. The sticker price is almost never what the dealership is actually willing to accept, so be sure to start low and work your way up.
And there you have it, your first-time car buying cheat sheet! Just remember to stay within your budget, differentiate between needs and wants, and do your research before signing on the dotted line. With these guidelines in mind, you’re sure to find the perfect car for you.
Contact us at
Eastern Cash For Cars
720 High St Rd, Glen Waverley, VIC 3150
(03) 7035 7830
www.easterncashforcars.com.au
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