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Auto financing, budgeting can help millennials find dream cars

Posted on Monday, May 19, 2014 at 10:43:13 AM

Millennials are an important demographic when it comes to consumer spending. As more of Gen Y looks for affordable auto financing, plenty of information has come to light about their buying trends. For example, one Mitsubishi dealership in Canada has noted that millennials are interested in customizable vehicles, as well as smaller and more unique options.

For a large number of millennials, this vehicle will be their first foray into auto financing and buying. As a result, the entire process can feel overwhelming at times. To help prevent any problems - and ensure that the best deal is to be had - Home Loan Investment Bank's Christine Dikdan offered some crucial advice for millennials looking to buy a new car. The first step, she explained, is to budget income and expenses, and always allow a little bit extra for that rainy-day surprise.

"The biggest mistake I see customers older and younger make is thinking that the car payment is the car payment and that is it," said Dikdan. "Whether you buy new or used - warranty or not - there are other costs, such as insurance and gas as well as repairs not covered under a warranty. A vehicle is a big engine on wheels with many moving parts that break and cost money, time, and inconvenience to fix - or in the case of an accident, replace."

Given the rise of customization in new vehicles, many millennials are going this route when buying a car. With that in mind, a few features stand out as more valuable than others. 

"Any additional safety features are of the most importance to me," she noted. "A smaller vehicle has less protection - period. Airbags and working seatbelts are a must. Cameras have already saved many lives - but they also prevent hitting other objects that can wreak havoc with your car and be costly to fix."

Above all else, Dikdan stressed that novice auto shoppers must understand the value of being able to get from point A to point B in a reliable and safe manner. The goal should be to save as much money as possible and keep a credit score intact.