Whether it’s the 10% gross income rule for monthly car payments and expenses or the 25% rule for purchasing a new vehicle, there is no one size fits all answer financial experts can agree on when it comes to how much “Car” you can afford.
Your annual salary should determine the price of the car you can afford. Here are four very simple tips to help with your next car purchase.
Before you ever set foot on a car lot or hop on to a car buying website, be sure to set your budget. Go ahead and set a budget for each of the following: 1. Insurance 2. Fuel 3. Maintenance
Depending on where you live, fuel, personal property taxes, car maintenance, and insurance can really begin to add up.
Here is the biggest reason to avoid buying a brand new car: New cars lose close to 20% of their initial value in the first year of owning one.
No matter how much you know about buying a car that is affordable, one thing is for certai. If you are buying your next car to impress others you will most likely go over budget in just about every area.