Car purchase guides, including this one, explain the reasons why setting a budget is critical before you start buying a car for sale Brisbane dealers have. The number one reason is that without a hard maximum limit, you are likely to leave the dealership having spent more than you can afford. So, how do you set this limit?
Prudent savers have the cash to pay for any motorised vehicle they can find, and they do not intend on paying more than what they have. Unfortunately, most car buyers don’t have this kind of discipline—and financing comes in. Financing means that you are borrowing a specific amount of money with the plan to pay it back over a period of time.
Purchasingcars for sale Brisbane QLD dealerships has become easier, but identifying how much you can afford is the harder task. Instead of asking yourself how much of a vehicle you can afford, ask how long you intend to keep your next automobile. Here is why…
Reducing monthly payments
Whether you are purchasing or leasing a vehicle, you should study the monthly payments you are about to sign-up for. Did you know that it is easy to reduce your monthly outgoing cash?
Well, the trick involves extending the loan or lease term. Ignore the impact that the interest may have. If your three-year loan costs $600 a month, spreading it for six years cuts the cost to about $300 monthly.
Finding the most affordable car
Now that you have a sense of how long you wish to be committed to pay for the car, start looking into what is the most affordable. The rules for calculating affordability include purchasing a vehicle that is not over 35 percent of your annual income. When financing a car, the monthly costs (car payment, fuel, maintenance, and insurance) should not be over 10 percent of your monthly gross income.
How to budget for a new car
Even as you look at the prices of cars for sale Brisbane QLD dealerships have, you must carry out a cash flow analysis. Make a note of your monthly expenses, including food, utilities, rent, and so on, and deduct them from the after-tax income you earn. What is left over is not only available for a new car; it also should cater for things like registration fees and tax.
According to some car for sale Brisbane finance providers, you should apply the 20/4/10 rule. This means that you put down a minimum 20 per cent, limit your loan term to a maximum of four years, and spend less than 10 percent of your income.
Being the smart shopper
Online car shopping is a smart move that helps you avoid misleading newspaper advertisements or avoid walking from one dealership to the next. Plus, dealerships look at online cars for sale Brisbane QLD deals as high volume low-profit transactions, enabling you to find great deals. So, the next time you are car shopping, start online.
Finding the best deals
Toowong Kia makes it easy for you to purchase the best demo, used, or new car for sale Brisbane has for you. Visit toowongkia.com.au and start your car-buying process right in the comfort of your home today!
