New or used, buy or lease, you need to know all the costs involved in getting your next car. Even if a car is a great deal and the financing options are unbeatable, you may find that making those monthly payments puts an impossible strain on your budget.
If you're not sure how much you can afford, talk to a financial advisor or get pre-approval on a car loan from a bank. Professional advice in the area of financing will let you know ahead of time how much you can really afford.
Once you set your price range, stick to it. Don't even look at cars that cost more so you won't be tempted to overspend. The trick is getting the car you need for a price you can afford. If you're buying new, don't be tempted by unnecessary extras that will run up the price of the car, and be cautious about purchasing extended warranties. If you can't afford everything you want in a car, prioritize the features on your list.
Use this worksheet when you are shopping to help compare benefits and cost of the cars you like most.
|
CAR #1 |
CAR #2 |
| Make & model: |
____________ |
____________ |
| Dealer/owner: |
____________ |
____________ |
| Base price: |
____________ |
____________ |
| Description/options |
| Color: |
____________ |
____________ |
| Auto. transmission: |
____________ |
____________ |
| 4-wheel drive: |
____________ |
____________ |
| Power steering: |
____________ |
____________ |
| Antilock brakes: |
____________ |
____________ |
| Air bags: |
____________ |
____________ |
| Air conditioning: |
____________ |
____________ |
| Stereo: |
____________ |
____________ |
| Power locks: |
____________ |
____________ |
| Power windows: |
____________ |
____________ |
| Alarm system: |
____________ |
____________ |
| Sunroof: |
____________ |
____________ |
| Roof rack: |
____________ |
____________ |
Warranty
(miles/time): |
____________ |
____________ |
Miles per gallon
(city/hwy): |
____________ |
____________ |
| Total price: |
____________ |
____________ |
| Down payment: |
____________ |
____________ |
| Monthly payment: |
____________ |
____________ |
Monthly insurance
premium: |
____________ |
____________ |
Don't forget that owning a car costs more than the monthly payments. Gas, maintenance, taxes and insurance should all be figured into the cost of car ownership. For example, if you own an older car and decide to buy a new one, you may find your car insurance is several hundred dollars more per year. Check with your insurance agent for an estimate of car insurance costs. Here's a list to help you estimate the cost of buying and owning a car.
PURCHASE:
| Base price |
______________________ |
| Options |
| (list and price): |
______________________ |
|
______________________ |
|
______________________ |
|
______________________ |
|
______________________ |
| Power steering |
______________________ |
| Air conditioning |
______________________ |
| Stereo |
______________________ |
| Antilock brakes |
______________________ |
| Air bags |
______________________ |
| Power locks |
______________________ |
| Power windows |
______________________ |
| Alarm system |
______________________ |
| Sunroof |
______________________ |
| Roof rack |
______________________ |
| Trailor package |
______________________ |
|
______________________ |
|
______________________ |
| Sales tax |
______________________ |
License plates/
registration |
______________________ |
Total purchase
price |
______________________ |
OWNERSHIP COSTS (ANNUAL):
| Insurance |
______________________ |
| (call your insurance agent with the make and model) |
| Registration |
______________________ |
| (call your local Department of Motor Vehicles) |
| Gas |
______________________ |
| (estimated annual miles per year driven miles/per gal. x price per gal.of gas) |
| Service |
______________________ |
| (ask car dealer for an estimate) |
| Parking |
______________________ |
|
| Total annual cost |
______________________ |
