Proper planning can ensure affordable auto-buying experience
Posted on Wednesday, July 9, 2014 at 9:24:25 AM
Buying a new car can be a quick process - all it takes is walking into a dealership, driving a vehicle and making the deal. However, even with that speedy transaction, mistakes can be made that could make that purchase unaffordable.
According to Requisite Press, LLC, a median-income family can only afford 52.7 percent of the average new vehicle, which comes in at a price of $30,342. Factors, such as auto financing and insurance, can either help or hurt, depending on how much research is performed beforehand.
"Car buyers are often encouraged to focus solely on monthly payments," said Phil Kelton, president of Requisite Press. "But long-term loans, with seemingly affordable payments, inflate the amount that buyers spend and can erode household financial security. Buyers that aren't fully informed can easily become financially struggling owners and poor long-term customers."
Therefore, a little bit of preparation can go a long way. Certain vehicles, auto financing terms and negotiating skills can help keep the costs down.
In addition, Mint.com reported that buyers should make sure their credit is in order well ahead of time. If you are interested in a new car, get your credit score in its best possible shape, and try to pay off some of your existing debt. That way, your personal finances can handle the purchase.