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Top 5 Considerations When Budgeting for Buying a Car

Top 5 Considerations When Budgeting for Buying a Car


There’s a lot to consider when you’re
budgeting for buying a car. Here are the top 5 things you need to know before you buy. #5: Play the Field Go ahead and dream. Explore all the options and see what’s available. You’re probably only buying a car once every
five to seven years, so see what’s out there. Cars are fun and there are always new and
exciting options to explore. You’ll have to run all the numbers before
you buy, but what’s the harm in looking? #4: Run the Numbers Now that that’s out of your system, you’re
probably ready to settle down. Take a few minutes, sit down and run some
numbers. It’s not as much fun but you should plan
your budget before you visit a used car dealer. Having a financial plan and a well-thought-out
budget can help you avoid heartache, and financial problems, down the road. #3: Make Some Room If you’re replacing a car, and perhaps taking
out a new car loan, you’ve probably already worked all the costs into your monthly budget. If you’re buying a car for the first time,
you’re going to need to do some math. First add up all your monthly expenses like
rent, food, insurance, and savings. Then, subtract that number from your take
home pay. You should then allocate about 15% to 20%
of what’s left to your car budget. #2: Don’t Forget the Extras When you’re calculating your budget make
sure you include things like auto insurance, gas, maintenance, and taxes. We all have to pay them. And, include a little bit for road trips to
the beach or an occasional parking ticket. Underestimating these expenses, and not planning
for the unexpected, can put you into a real financial jam. #1: Be Real We all hope you’re going to get that big
raise or a killer bonus – but you can’t bank on that. It is much better to buy the car you can afford
today. You’ll be better prepared for life’s unexpected
surprises, both good and bad, if you plan smart. And, who knows, if that bonus does come through
you might find yourself looking for a great new car! To really get the most enjoyment out of your
new vehicle make sure all is fine with your your personal bottom line so you can pay with
ease and on-time!

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