The first step when making any big purchase is to answer the question: how much can you afford? Knowing this upfront gives you a realistic picture of where to begin your car-buying journey. While your dream car may tempt you, your budget will tell you whether it’s a smart choice. When creating your budget, look for ways to cut expenses, such as limiting your spending where you can. Also, don’t forget to include other car-related expenses, such as insurance, maintenance, and gas that goes along with car ownership.
Also, if you already own a car, consider trading it in and researching its value. Tracy recommends using tools like Kelly Blue Book, Cars.com, and TrueCar.com to get a realistic estimate of your tradie-in value before heading to the dealership.
If you plan to finance your vehicle, getting pre‑approved by your financial institution is a smart move. Having financing in place before visiting a dealership puts you in a stronger position to negotiate. It also helps keep the focus on the price of the car and not just the monthly payment.
Tracy also suggests holding off on discussing a trade‑in until you’re happy with the price of your new vehicle. This allows you to negotiate each part of the deal separately. Most importantly, understand your loan terms. A longer loan term may lower your monthly payment, while a shorter term could save you money on interest over time. The right choice depends on what fits comfortably into your budget.
To buy, or not to buy? You may be skeptical about purchasing a car in today’s market, and rightfully so. However, with the right planning, a clear budget, and guidance from trusted experts, purchasing a vehicle doesn’t have to be stressful. By taking a thoughtful approach, you may find a way to save money and enjoy your new ride with confidence.
Meet Tracy, our Director of Lending. Tracy has been with AllSouth for over 15 years. He leads a high-performing team of local loan officers to deliver personalized service and lending options to help our members achieve their goals.