Can You Afford A New Car?

If you have been thinking about getting that new car, now is the time to buy because dealers are lowering the prices on last years models. But, before you head out and sign those papers here are a few tips to keep in mind:

1. Will your family be increasing or decreasing in the next 3 years? By planning ahead you’ll save yourself the headache of having to much or to little of a vehicle.

2. Does the dealership offer extra incentives? For example, FREE oil changes or car washes with the purchase of a new car?

3. Take the car manufacture into consideration. A Toyota or Honda parts are typically inexpensive compared to a Mercedes or BMW.

4. Call your insurance company and find out how much insurance is going to be. When you have a loan you’ll need full coverage insurance. However, if your current car is paid off you don’t necessarily need full coverage insurance and can save money by lowering your insurance coverage.

5. If you are going to go ahead and go after that new car, shop around for the best rates. Just because the dealership is offering you financing, doesn’t mean the Credit Union down the road won’t beat those rates!

6. Will you be trading in your current vehicle? If so, you will be able to get more money by selling it on Craigslist. Do not let the car dealership give you $500 for it!

Quick tip: If you can maintain your current vehicle for less than a year in car payments, it’s worth while to hang onto your old vehicle.

Do you have a car related question that you would like to ask? If so, leave a comment or email it to Marci @ (spaces removed!). Marci’s husband is a ASE Master Certified Mechanic employed at Ulmer’s Auto Care and happy to help!