Car Buying: Helpful Tips & Tricks
If youíre thinking about buying a car this summer, itís time to start planning and budgeting. Purchasing a car can be pretty expensive! So before you make an impulse decision, check out some of these helpful car buying tips and tricks!
Should I lease or buy?
Leasing, rather than buying a vehicle, can be a good option for some. If you lease, your monthly payments will be smaller than if you financed the purchase. Leasing, however requires some contractual obligations, so it isnít right for everyone. While payments may be less per month, you may be limited on how many miles you can drive per year and pay a significant penalty when you turn the vehicle in. Once youíve locked into a lease, breaking it is nearly impossible versus buying a car where you can attempt to sell it and terminate the loan.
Car Payment Calculator
- Car payments should be no more than 4-6% of your gross income (income before taxes) per month
- $40,000 gross x 6% = $2,400/12 months = $200 per month
7 Tips to Follow When Car Shopping
1. Figure out your car budget
2. Calculate potential payments on loan amounts
3. Practice negotiating with someone
4. Be willing to walk away
5. Always negotiate the price of warranties and insurance
6. Stick to your budget- both payments and the total amount youíre willing to spend on the vehicle
7. Get qualified at the CREDIT UNION FIRST!
Any information contained within the contents of this blog are opinions and suggestions of the writers and do not necessarily reflect any policies or positions of the credit union. Any reference made to products or promotions are not guaranteed at any time. This information is not intended to be considered financial advice. It is provided for your education only. Community 1st Credit Union is Federally Insured by the NCUA.