4 Tips That Will Help You Afford That New Car You've Been Eyeing

car dealerIf you are looking to purchase a brand new car, there are some things you should first consider. There are many advantages to buying a new car, but the price can be quite a sticker shock for anyone. It is important to get your finances in check before you head to those car dealerships, so we have put together some great tips on how to afford that brand new car you have been eyeing.

1. Don't look for options, and be certain with what you want
Simply put, looking for different options can be too enticing. If you go to the car dealer with a bunch of different ideas swirling around, you may end up with a vehicle that may not suit your needs or you cannot afford in the long run. So do your research beforehand and consider different aspects of your life such as the length of your commute, how often you travel, how many children you have, and if you need something that has an all-weather capability or trail rated.

2. Create a budget

Confused on how to set a budget? As a general rule of thumb, make sure that your monthly car payment should not be more than 20% more than your take-home pay. While this may not seem like a huge number, consider the fact that you will have to insure your car, take it to a mechanic, and fill it with gas on top of all your other monthly expenses!

3. Secure your financing upfront
This is crucial so you know how much you'll be able to pay each month. As previously stated, going into the dealership without at least a number in mind can backfire.

4. Don't only focus on the monthly payment

Your salesperson may be able to fix up a deal depending on if you trade in your current vehicle or if you have a down payment. The length of the term can also be adjusted to make your car affordable if need be. But before you sign on for a long-term contract, make sure you completely understand what you are getting into.

Looking for a new car? Come on down to Deery of Ames and check out all our stock.
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