If you consider purchasing a new vehicle, the buying process can feel overwhelming. You want a car that will benefit you now and last for years. Here are some tips to help you find the right vehicle.
Evaluate Your Needs
The “right car” is a subjective term when referring to vehicles. Factors to consider are the number of passengers you need to carry, the roads you will drive on, special features the car must have, cargo capacity, whether you will be towing a vehicle, and the amount of space for parking you have. Do you need a vehicle to haul materials and transport your family, or are you looking for something that is fun as you cruise on the weekend? The answers to these and other questions will help you determine the right car.
Determine Your Budget
Unless you have cash saved up to pay for your car straight out, you will need to consider either financing or leasing your vehicle. You have to ask yourself how much you can genuinely afford or how much you can allocate to your car payment each month.
A rule of thumb is that your car payment should not be more than 15% of your monthly take-home pay. The same rule applies whether you purchase a new vehicle or a used vehicle. If you lease a car, try to find one that is less than 10% of your take-home pay. You should factor in an additional 7% to cover maintenance, insurance, and fuel costs. Having your budget laid out in advance will help you when negotiating to get that beautiful Mazda CX30 for sale you have been eyeing.
Will You Lease or Buy?
Whether you lease or buy will vary based on your financial situation and when you want to have the vehicle. For example, you won’t need to put money down if you lease a car, and the monthly payments are typically lower. However, you can’t sell the vehicle when the lease is done, so you start the process again. When you purchase a car, the initial out-of-pocket expense is higher. Once you pay off the loan, you have a vehicle for as long as it runs.
Before you buy a car, do your due diligence. Research the vehicle to make sure it fits your needs. Take it for a test drive. When you are happy with it, pull the trigger. Following these steps will help you find a vehicle for your needs.