subject: Factors To Consider When Buying A Car [print this page] There are several factors that you must consider when buying a car. Its not only about making monthly payments for the car; rather you must also take the cost of fuel, maintenance, repair, tax and insurance into consideration. Let us take a look at a few important things that should be taken into account when buying a car.
Determine the reason: Before you buy a new car, figure out the reasons of buying a car. Ask yourself why you need to buy a car or whether or not you can do without it. This will help you making the correct decision if at all you need to buy a car or what kind of car you should go for. If its not only to drop your children to school or go to your work, then you may not need to buy a high-end car like BMW or Mercedes Benz. Go for the one that will meet your need and fit within your budget.
How much you can afford: Find out how much you can afford to make your monthly payment. Ideally, you should shell out more than 12% of your net income to make monthly payment for your car. This means if you earn $4000 per month, then you should not spend more than $480 on your car payment each month. If your dream car costs more than that, look for another car.
Pay attention to credit score: When buying a car, you must take a look at your credit score. Order your credit report from credit report bureaus and take a look at the then to determine the score. Remember that the higher the score is, the lower the interest rate you will receive from the financial institution. Hence, review the reports carefully and check if there is any erroneous information. If so, dispute the credit report bureaus immediately.
Make a budget: Do not forget to compile a budget, before buying a car. List down all your income and expenses, and see how much you can afford to pay each month on your car. If required, cut down on the unnecessary expenses, such as frequent visit to restaurants, going to movie theatre every weekend, impulsive shopping, subscription to expensive magazines and many others. This will help you save some cash to make your monthly payment on time.
Check necessary features of the car: If you are going to spend a good amount on your car, you must want to get the most up-to-date improvements available. Air bag is one of the most important safety features that you must look for. Anti-lock brakes, electronic stability/skid control system, telescoping steering wheel, DP Chip or Xr6t exhaust are some of the important feature that your car should preferably have.
Shop around well: Surf on the internet or go through the phone book to find a car dealer in your area. Contact at least three or more dealers and collect their quotes and terms. Evaluate the estimates carefully and choose the one that fits within your budget.
by: Alice Dylan
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