A car will usually depreciate the moment you buy it and drive away, so it’s important that your next car purchase is one you’re happy with and don’t end up regretting. Before you buy your next car, try to avoid the following:
Focusing too much on the monthly car payment
Instead of looking at the total cost of the car, some people only focus on what their monthly car payment will be and if it’s within their budget, they don’t take other factors into consideration. For example, if you have a long daily commute, you have to factor in gas costs. If the car you’re buying burns through a lot of fuel, it will cost you a lot more each month to own that car, as opposed to an energy efficient car. Another factor to consider is car insurance, and to remember that the make and model of your vehicle can influence what your car insurance premium will be. Aside from your monthly car loan payments, be sure to take all expenses into consideration and make sure that these expenses are affordable.
Overlooking car loan terms
Another issue with focusing solely on the monthly car payment is that you may not realize just how much you are paying in interest. Instead of just making sure that the monthly car payment is within your budget, take a good look at how much you’d be paying in interest and other terms of the loan. Depending on what you’re being offered, you may want to shop around for a different car, a different loan, or both. You may also want to settle for a less expensive car and just skipping the car loan completely if you can’t obtain a loan with a decent rate, and just paying for a used vehicle in cash.
Buying a car that’s too expensive
All of the expenses for the car you’ve got your eye on are within your budget, but are you stretching every last dollar to make it possible? Just because you can afford a certain amount each month on a car, doesn’t mean you should necessarily spend that amount. If you end up broke each month after paying for your car, you may have made the mistake of buying a car that’s too expensive. Instead, opt for a vehicle that still leaves plenty of money left over at the end of the month to put into savings. If your car payments are too high, they can eventually become overwhelming and you may not be able to pay them later on down the road if something happens. And if you can no longer afford your car payments, the lender will likely repossess your car and your credit will take a major hit.
Not looking at the VIN report
If you’re buying a used car, especially from a private seller, it’s important to check out the car’s history by pulling its VIN report. Even if it’s a great deal, the last thing you want to deal with is issues and repairs right after buying the car, especially if you weren’t aware of them. Even though there are lemon laws in place that are meant to protect consumers, do you really want to deal with that kind of hassle? Save yourself the trouble by looking at the car’s VIN report first.
Do you need money to buy a car? If you’re receiving long-term payments from an annuity or structured settlement, Peachtree Financial Solutions may be able to help. We can purchase some or all of your future payments and send that money in one lump sum payment. We have helped many of our customers get the money they need to buy a car, and we’d like to help you, too. Contact us today to learn more about selling future payments for a lump sum of cash.
Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.