So you want to buy a new car but need to know the true cost.
Here are some things to consider.
First, gas mileage. If you have a car that gets 25 mpg but your new car will get 19 mpg that will result in nearly a 25% jump in your gasoline budget!
Second, remember to consider taxes and registration. Ask about these costs up front.
Third call your insurance agent and ask how much your insurance will increase. If you buy a new car on credit the amount of insurance you need will be dictated by your lender.
While you may have fewer repairs remember to factor in the costs of regular maintenance. These costs should be given to you by a dealer or by your mechanic.
If you will buy the car on credit you can use a loan calculator (Thrifty Times Loan Calculator) to approximate how much a car loan payment would be. Call around to find out loan rates. Remember to check with dealerships, banks and credit unions.
Here are a few last thoughts before making a car purchase. According to the Bureau of Labor Statistics in 2004 Americans spent 18% of their income on transportation. (2004 statistics ) 7.8% on the outlay of purchasing transportation. This is a significant outlay so you will want to do your homework.
It is a good idea to agree to read at least two independent reports on the year and model you are considering.
Agree to wait 24 hours before making a decision, especially on a new car.
Have your trusted mechanic check out any used cars you are considering. (You may want to budget this cost in - if it costs $25 for a safety inspection budget $100 for 4 inspections.)
Pray before making any major purchases. Rework your budget before you start looking. Strongly consider the purchase of a used car. Read consumer reports and other reports on repairs and resale (if resale will be an option) besides the usual car ratings.
Remember, if you would like to compare your spending with the national average you can go to the budget calculaor (Budget Calculator ) fill out the form and have the results mailed to you. I highly recommend you use the budget calculator before you make any major purchase. After comparing yourself with others and rewroking your budget you may find that it owuld be wise to keep your present car. If that is the case, then ask God for grace and learn to be content.
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