KNOW YOUR BUDGET
A big mistake that many consumers make when buying a new car is not setting a budget before showing up at the dealership. Financial experts recommend that no more than 20 % of a monthly budget should be devoted to automobile related expenses. When making a budget, the cost of car insurance should also be included with the cost of the monthly car loan payment. By not taking the time to set a budget, one can quickly get themselves behind on other bills by taking on an auto loan that is not affordable. Car dealers love customers who make auto purchases based on emotion, so do not fall into this trap by picking a vehicle that does not fit the budget.
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