Learn to Pick the right Car for You

The Cost of your New Car is going to be the Main hurtle on your journey to ending up with what you want.

If you find the perfect car for you as the first step then you will be in trouble.

You will almost always end up with picks that are far more than you want to spend.

Be realistic about how much you can afford.

Do this before looking at cars and picking the types you want.

If you pay more than you can afford it will take you years to recover from that mistake financially.

Learn how to Calculate the Car Price you can afford.

This is far more than simply picking a monthly figure and boom find a car that fits.

First you figure out your Total monthly amount you can pay for everything with the car.

Insurance Costs

Find out what the average amount it costs monthly for Insurance.

Be accurate here, if you need collision insurance than include it.

Shop around and find the right insurance company for you.

Be sure you can use them when you buy your new car.

Deduct this monthly insurance rate off your total monthly amount.

Gas Costs

Calculate how much driving you will do and add 50% to that total.

Next figure out how much gas you will buy and calculat ethe monthly cost.

Remove this from your total allotment.

Car Maintenance.

If you are new to car ownership this can be super hard.

You can ballpark the figures here and be close.

Oil changes, windshield wipers, and tires will run you around $250 per year average.

If you have a car over 5 years old count on another $400 per year in repairs.

Remove this annual total off your allotment.

How much can I afford ?

The remaining amount is how much you can afford in a new car.

If you go over this then expect to have to cut back in other area’s.

Do not expect this calculation to be heavily weighted on costs.

If we have learned anything it is that it always costs more than you project.

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