Purchasing a brand new car is exciting. Similar to purchasing a house or a condo unit, it is also an expensive adventure.

Here are some things to consider for hassle-free purchase experience.

Know what car your need to buy

This is the first question you have to ask your self – Why do I need to have this car?

When getting a vehicle, look into the kind of car that fits your need. Do you need a bigger car for the family? Do you need one that you will use for your business? Are you considering a brand new car or thinking of getting a used car? 

By knowing what your lifestyle needs are, you can shortlist what important specifications and model you should be looking for.

Set a Budget

Buy only a car that you can afford. 

You have unlimited choices if budget is not a concern. You can get a vehicle that you need and you want. 

Buy only a car when you have paid off your existing car. However, if you really need another one, you have to reassess whether or not you can really afford to get a new car. 

Financial experts recommend that  you to spend not more than 10% of your monthly take-home pay on your car payment.

Research, research, research.

Do more research for the kind of vehicle that you need that fits your budget.

Check and read reports or customer reviews to learn which car perform the best and which ones to avoid. Compare different models and features in a car that you want. You might find the same features at a better price.

Check out different car dealerships to compare prices. They may price the same car differently depending on their location.

Know the different payment options offered and the existing interest rates. With the really high price tag of cars, almost all considers a car loan. It can either be direct to the bank, bank loan thru a car dealer,  or thru a dealer’s in-house financing.

It is recommended to choose a shorter payment term. Interest rates compound and incur more costs in the long run.

Aside from the car’s monthly payment, you also need to budget for the gas, maintenance, insurance, and other expenses. 

You’ll also want to know the payment options offered. If you’re getting an auto loan, make sure to set it up way in advance. These factors should be considered when calculating how much you will actually be spending for your carexpenses every month.

And don’t forget that the monthly payment isn’t everything. You also need to budget for insurance, gas, maintenance and other expenses, which shouldn’t cost more than another 5% to 10% of your take-home pay. 

You should consider all of these factors together when calculating how much you’ll actually be spending on your car each month.