The purchase of a new car be it new or used will have a significant impact on your personal finances. We all do it at least once in our lives so make sure you ask yourself the right questions before you make your next car purchase. Asking the right questions prior to your purchase can help you simplify your personal finances.
Here are some tips to help you simplify your personal finances when you decide to make your next car purchase.
Don’t buy more than you can afford – Know how much you can afford before you even begin looking for a car. Review your budget and determine how much you can afford. The best situation would be to pay cash or put a significant down payment so the purchase would not significantly impact your monthly budget.
Don’t buy more car than you need – Do you really need a eight passenger SUV? When you are single or only have a family of four. Probably not. So buy the car that fits your needs so you are not paying for more car than your really need.
Buy for the long term – When you decide to purchase a car, purchase the one that you will get at least ten years usage or more. Don’t buy a new fancy sports car when you know you will probably out grow it within two years.
Know your credit score – this will impact the financing of your car. If you have a low credit score you will end up paying a higher interest rate if you finance your car which will ultimately impact the overall cost of your car. So its always best to know what your score is before you purchase a car. This way you are not surprised when they tell you your interest rate.
Til next week take one step at a time to simplify your personal financial life.