When people search for New Cars in Green Madison, they use their hearts as much as their heads–and it can have disastrous financial consequences. A car that makes your heart skip a beat may also drain your bank account–by considering the factors below, you can find a car that fits your needs and your budget.
- Your location: Your finance rate and taxes are calculated according to your ZIP code. Many make the mistake of not budgeting for these extra expenses, which can run in the hundreds or thousands of dollars.
- Your monthly payment goal: This is the amount you can pay every month. It should account for tax, tag and title fees that are rolled into the cost of your loan. Your monthly payment shouldn’t exceed 20% of your net income, and it doesn’t include maintenance, fuel and insurance costs.
- The term of your car loan: It’s not a good idea to finance New Cars in Green Madison for more than five years. A shorter-term loan will result in a higher monthly payment, and a longer-duration loan means a lower payment but a higher interest rate. The older a car is and the more wear and tear it has, the harder it is for some to justify the continued cost of making payments.
- Trade-in value: If you currently have a vehicle and are trading it to a dealer, you can apply its value to the purchase price of the new vehicle. However, you may be able to get more money by selling your car to a private party.
- Down payment: Like buying a home, you should put down as much as you can comfortably afford (preferably 20% or more). A larger down payment reduces the loan’s size, and it lowers your payment each month. By paying a significant down payment, you’ll never owe more than the car is worth.
Buying New Cars in Green Madison can be an exciting time in your life, but it can also be stressful. By considering the factors above and choosing a car that fits your lifestyle and your budget, you can avoid being “taken for a ride” when you visit the dealership.
