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Being Prepared When Buying a New Car

Buying a car is a big deal. Whether you spend $2,000 or $20,000, a car is a big purchase. There are different things you might want to think about doing before you buy a car so that you are as prepared as possible. Doing some or all of the items below might save you some money and some time.

How’s your credit score?

Being Prepared When Buying a New CarIf you know you have a car purchase coming up soon, then you might want to check out your credit score if you plan on financing your new vehicle. This is because your credit score might not be high enough to be approved for a car loan, or your credit score might not be high enough to earn a low enough interest rate.

I know someone who went shopping for a car and bought one with a 24% interest rate. They were extremely happy and it was all just very shocking since they always have the newest cars and latest gadgets. 24% is a lot of extra money added into your car budget and it is a lot of money wasted that doesn’t have to be.

Instead work towards increasing your credit score so that you can get a much lower score on your car. You may even qualify for a 0% interest rate on a car loan.

Read these posts below if you are interested in working on your credit score:

Have a budget.

You should create a budget for your new car and think about what you can actually afford. Stick to your budget and be realistic with your spending.

Also, be sure to think about how much money you will spend on gas, insurance, maintenance and more when you think of a budget. If you get a car that needs $1,000 worth of gas pumped into it each month, than a $2,000 actual car budget probably wouldn’t make much sense. You need to factor in all costs into what you can actually afford.

Start your research before you start shopping.

Before you decide on a specific car, you should do your research to make sure you actually like it and that you can actually afford it. Don’t get your heart set on something that you don’t really need.

Selling a car soon after you buy it can mean a lot of money lost because of depreciation. Once you take that car off the lot you will lose a lot of money.

Did you make any mistakes when you last bought a car? What happened?

 

Image via Flickr by carolinqua

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