If you're just starting out with your car buying journey or haven't bought one in years, navigating the entire process can be daunting. After all, you need to find the perfect car that will fulfill your needs for years to come. Fortunately, with a little research and planning, buying the right car is not too challenging. When you know the type of car you want, you can then narrow down whether you want to purchase a new car, opt for a lease, or settle on a used car.
Evaluate Your Needs
The “right car” depends on both your personality and your expectations. You may want to make a statement with your car; for instance, you may want it to show that you're rich and hip or that you're earth-loving and retro. On the other hand, some people prefer spirited weekend drives and may need more horsepower or a loud engine. So, make practical considerations according to factors such as the number of passengers you need to carry and the kind of driving you do.
Make A Budget
Unless you're paying for your car in cash, you'll need to consider financing your purchase or lease. How much can you set aside toward a car payment every month? The rule of thumb is that your new-car payment each month should be at a maximum of 15 percent of your monthly take-home pay.
Although a used car will be cheaper than a new one, the same rule applies. If you want a lease, look at a payment not exceeding 10 percent of your take-home pay every month. You'll also want to consider an extra 7 percent of your monthly income that will go towards fuel and insurance costs. Making a budget in advance allows you to negotiate your next car or truck with ease.
Deciding Whether to Lease/Buy
Leasing and buying have their own benefits. For instance, a lease demands little or no money upfront, and the monthly payments are lower. But you will be left with no car when the lease expires. In comparison, purchasing a car is more expensive in the beginning, and you also have to shell out money for monthly payments. However, you get to own the car after paying off the loan.
Look at Other Cars in the Same Class
Have you got a particular car on your mind? Several shoppers do, but with new cars hitting the showroom every now and then, the right car for you could've just slipped your mind.
