First, ignore the kind of car you want. It’s likely to not suit your lifestyle or perform the duties you need it to. If you had enough money to buy any car your heart desired, you wouldn’t be here. So let’s get down to the right method.
Understand Your Needs
Will your family be using the car? If you have kids and elderly parents, ensure that the vehicle has enough passenger and cargo space, entertainment options, safety features, and is easy to get in and out of, like a family SUV or minivan. If you’re buying it to ferry clients around, you need something upscale like a luxury sedan or SUV. If you need to haul tools and tow loads, you need a truck. If you’re looking for a weekend adventure vehicle, a 4×4 SUV will do the trick.
Where You Are
If you live in a city, a subcompact or a small crossover may be a great choice for tight urban environments. If you live in the mountains covered with snow or a place where the roads are bad, and it rains a lot, you need a vehicle with four-wheel drive. If you’ll be driving long distances on highways, a midsize sedan could be fun to drive, comfortable, and fuel-efficient.
How Much You Can Spend
Don’t let the dealers sway you with the promise of low monthly payments. A smart way to buy a car is to put at least 10% of its price as down payment and pay 10% of your take-home pay as monthly payments for the car. Another 10% will be needed for insurance, fuel, and maintenance. Your loan should also not be for longer than 36 to 48 months. Calculate how much you can afford and see the cars that fit your price list and match your needs. You may need to give up on the latest infotainment systems or buy a used car. But those are compromises that will save you thousands of dollars. Imagine the joy of getting the perfect vehicle and saving money.
