The one question that disturbs people is that whether they should buy a new or used car. It all depends on how much you are willing to pay. And this might surprise you that most people choose used cars in Tempe. Further, owning a used car is similar, apart from the price tag of a new car. When creating a shopping budget, make sure you consider the total cost of owning the vehicle.
If you buy a car that you can’t afford, it will only add to the credit balance. Create a shopping list to be sure of what you need. Come out with a monthly figure of what you can spend on owning a car.
Creating the shopping budget
- Payment of loans
Just visit any online payment calculator to know about the loan repayments you have to do. Also, check out the monthly installments that would be under various scenarios.
- Checking the fuel
The gasoline prices fluctuate every time, but you have to come around with an estimated price budget. Likewise, it depends on how much you drive every month. You can maintain the fuel economy on used cars in tempe by knowing how much you are willing to spend.
- Maintaining and repairs
Each vehicle requires maintenance to keep vehicles in good working condition. Further, it depends on how much you drive the car in a year. The repairs are significantly trickier as you don’t know what can go wrong with the car.
Make the 20/4/10 thumb rule while making the shopping budget
The thumb rule is that you earn a 20% down payment on the car you plan to buy. If you do that, you will move to the next step. Also, it becomes a financing step for not more than four years. Get the monthly estimated costs to compare with the gross income. You can make the total car expense 20% of the monthly gross income.
After making the shopping list, you can decide on the car. Use an online car dealership if you want the best car.