When your income is stable and you're able to put aside some excess money consistently every month, planning for a new car purchase isn't complicated. Although most dealerships will allow people with all sorts of credit ratings to walk in and drive away in a new vehicle, you probably have a very specific car picked out as well as a purchase price you don't want to go above. Even though your new car payment is going to be an expenditure that you have to adjust for, auto insurance services, car detailing, fuel, and even air fresheners are a few reoccurring expenses that you can't leave out. This list of four steps will show you what it takes to budget for the type of car you won't be able to wait to drive home. Just make sure that you have already selected the best coverage from all available auto insurance services as well as your driver's license and paycheck stubs before you go new car shopping.
1. Budget for Auto Warranties and Roadside Assistance - With new cars come strong engines and brand new tires, but they will need to be checked up, serviced, and towed like any other automobile. Plenty of auto insurance services include optional roadside assistance plans that enable drivers to receive timely help, but you have to make sure that your policy includes emergency servicing. Extended warranties are also appealing to new car owners as it can help them to budget for necessary repairs they'll need to maintain their vehicles.
2. Compare Auto Insurance Services - It is hard to say how much you will pay in car insurance costs without comparing specific details. This is why you need to get quote comparison from all auto insurance services that have availability where you reside. You don't even need to own your car to get a precise estimate so that you'll know how much to put aside for auto insurance.
3. Check Out Your Driving Record - Even non-moving violations can effect your auto insurance costs, so know what violations appear on your driving record before you start looking for your new ride. Some auto insurance services offer policyholders copies of their driving abstracts. Note that the majority of car insurers only consider the most recent two years of driving history when writing new policies and renewing coverage.
4. Save Up For a Great Big Down Payment - Come to an auto dealership with no money down and you can still get a car, but it most likely won't be new. Motorists that only have minimal down payments generally qualify for financing at a higher interest rate, so their monthly car payments will be more expensive and their repayment schedules last years longer. You'll need somewhere around a 10-20% down payment to make your monthly auto loan payments lower, so wait just a little longer to buy your new vehicle if want to stick to your budget.
