Can you really afford a used car?

A car can provide you with an incredible amount of freedom and independence; but it can also deplete your pocketbook pretty quickly if you’re not careful. Before looking to buy used cars in Bridgeton NJ or any other city around the country, follow these tips:

Follow the 1/10 Rule

Never spend more than 1/10th of your income on a vehicle; so, if you make $30,000 a year, aim to spend no more than $3000 on a car. It may not sound like much, but you can get a nice set of wheels if you are a good negotiator and are realistic. Do you need all the bells and whistles that come with high-end cars? Remember that all of those electronics and options can break down, and can be costly to fix.

Always pay cash

This isn’t always possible, but aim to pay for your car with cash. Financing a car will cost you thousands in interest and if there comes a time you can’t make your payments, you’ll have the embarrassment of a repossession, along with more fees.

It’s more than just the sticker price

Along with the MSRP price, there are other fees to consider, such as tax, registration and of course insurance. Make sure you have enough to pay for these.

Other car costs

You’ll need proof of insurance before you can drive your car off the lot. Shop around to find the best insurance rate. Many people prefer working with insurance brokers because they do the ‘shopping’ for you and work to get you the best rate possible. Maintenance is another cost to consider. Regular oil changes, along with repairs should factor into your overall budget.

When you buy used cars in Bridgeton NJ, or other major city, be realistic about the type of car you can afford and aim to negotiate a price even lower than that. Your pocketbook will thank you!

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