You want a new car. But not just any new car — your dream car. The
only thing stopping you from going to the dealership, signing the
papers and driving off the lot in your new ride is the infamous ‘B’
word — your budget.
While there’s nothing wrong with wanting the finer things in life,
purchasing a car that’s aesthetically pleasing AND affordable is
always a win-win. So before you begin the car buying process, you
should determine a feasible budget that best suits your needs.
Here are a couple of ways you can get started:
Review your current finances. Once you’ve evaluated your monthly expenses (i.e. mortgage
or rent, utilities, student loans, cable and Internet, etc.), you
can determine how much of your residual income can be allocated
towards the cost of a new vehicle.
Price out car insurance and other expenses. Figuring out a monthly car payment that works for you is
only half the battle. When calculating your car expenses, don’t
forget to add fuel costs, maintenance and car insurance. Knowing all
of this information will help you narrow down your options when
shopping for a car.