| Hi Taylor
- I'm looking to buy a new car but I'm having a lot of trouble pulling
the trigger. Any advice/strategy for spending this kind of money and
avoiding buyer's remorse?
Hi Lucy - This can be a really tough decision. When it comes
down to it, there's no proven way to get the perfect car for the perfect
amount of money, because we all have different incomes and different
needs. The best way to ensure you don't instantly regret the buy is
to focus on meeting as many of your needs as possible.
much can you spend? The surest way to feel buyer's remorse
is going beyond your means. You need to have a very clear idea
of how much you can afford and which vehicles fit within your
budget. Now, everyone's budget will look different on the day
of purchase. I'd love it if you paid in cash, but I understand
financing might be a necessity. You have to gauge how much you
can afford up front and how quickly you can pay off a loan. A
bigger down payment always means better terms, so don't consider
extending the payment period in order to save a few bucks walking
off the lot. Above all, crunch the numbers thoroughly before you
start shopping around.
2. What do you need? When it comes to car buying, there's
an enormous gap between need and want. You might want a 4-door,
but are those extra doors really worth a couple thousand dollars?
Then there are all the other questions - are you going to use
the car for work, do you take frequent long trips, do you need
enough space for a family and cargo, how much will you be able
to afford in gas each month, etc. Make a list of amenities that
are important to you, and then make sure you give those priorities
over the nifty functions and sleek lines of the cars you see on
the lot. Don't let your wants beat out your needs!
3. Think outside the box. Part of the problem might be
feeling like you have to purchase from a dealership and you worry
about getting swindled. Have you asked around to see if friends,
family or coworkers have cars for sale? Have you checked local
listings and then gone to meet with individual sellers? If going
this route, I usually find it well worth the hundred dollars it
cost for a mechanic to look it over to ensure everything is in
order. Make sure you exhaust all the options before going the
Buying a car
is a big event, and I think it's good that you're feeling a little
anxiety. Turn that apprehension into caution and I'm sure you'll
find the right deal. Good luck, Lucy!
© Taylor Kovar
January 25, 2019
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an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
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