Know your price range
Financial experts recommend not spending more than 15% of your after tax monthly income for car payments. Carefully assess how much car you can afford based on your income and lifestyle, prior to purchasing the car.
To calculate your affordability index, multiply your monthly net pay (that’s your take-home income after taxes are deducted) by 15% (0.15).
As a rule of thumb, your monthly car payments should not exceed this amount.
Adequately research makes and models
It’s ideal to base your decision on several vehicles, rather than just one. Read reviews, check out available features and options and review safety records for each car in your price range before you fall in love with a particular car. If you set your sites on one car, you may miss out on a better value or a car that suits your needs better. Take a look at our Research section for reviews, comparisons and more.
It is essential to compare similar models and objectively match them with your requirements. Let reason rule over passion to avoid an impulse buy you may regret later on. Doing the research will help you narrow your focus to one or two cars.
Assess the features you want most in your car
Although it may seem like a small point, knowing specific features that you want in your car will enhance the ownership experience and save you money in the long run.
When you buy a car it is worth considering safety features such as: antilock brakes, electronic stability control and side airbags. These features will not only protect from (and in the event of) an accident, but they will be desirable to buyers when you look to sell the car down the road.
Adequately research the value of your trade-in
If you are planning to trade in your current vehicle it pays to know what it is worth. Knowing the value of the car and sticking to your price when you negotiate with the dealer will help you get the best possible deal.
Get the ownership history
Get a copy of the vehicle’s history report to confirm how many owners the car has had and that the stated mileage is accurate. You can get access to these reports in our Research section.
Although these reports are extremely useful, they do not tell you whether the car has been in an accident. Be wary of titles stating: “salvage,” “rebuilt,” or any similar notation. Also, make sure the mileage disclosed matches the odometer reading on the car.
Maintenance matters
Make sure to see the car’s maintenance records. These include oil change sheets, bills for brakes and belts, regularly schedules maintenance and any other work done on the car.
If none are given, be suspicious of the car’s service history. A complete lack of maintenance records may suggest neglect or abuse by a former owner.
