Saving for a car is simple, right? Not really. For most car shoppers, saving up for a new vehicle is more difficult than it sounds, especially if you need a few thousand dollars just for the down payment. That’s why Warsaw Buick GMC has created a list of tips for saving for a car. From budgeting to shopping around, there are a few things to keep in mind when you’re trying to get a new car.
One of the first steps is to determine how much you want to pay on a monthly basis. According to USA Today, most shoppers with decent credit can negotiate monthly payments with a dealership or financer. Most people should spend less than 10 percent of their gross monthly interest on a new car, but you should also leave some room for repairs, oil changes, and insurance.
Look at a Down Payment
Next, determine how much you need to make a down payment. In short, you should have 20 percent of the sticker price in cash. Some shoppers may be able to find deals that require nothing down; however, it may make the most sense to pay 20 percent down to lower overall monthly payments.
Determine How You’ll Use the Car
Additionally, you should sit down and think about when you need or want your car. Why are you getting a new car? Is it necessary for work? If you can wait to get a new car and save up a little more for the down payment, you should wait as long as possible. Naturally, however, some people simply need or want a car soon to get the process over with.
If you’re ready to take the plunge, or if you have questions about financing your next vehicle, stop by Warsaw Buick GMC.