7 Tips To Help Choose The Right Car For Your Budget (2024)

Choosing a car requires lots of planning and research if you are to get one that suits your needs. This process can even be more daunting for a first-time buyer. From assessing car models, specs, financing, insurance options, and more.

Here is everything you need to know about choosing the right car for your budget.

Assess your needs

The first step to choosing the right car is asking yourself what you expect out of a car. Do you want a flashy car that will make a business statement or one to go on long road trips during the weekends?

Maybe you need a functional car for everyday duties.

Determine the number of passengers you will be carrying, the terrain, fuel economy, cargo capacity, and your must-have features.

Determine your total budget

Now that you have assessed your needs, set a reasonable upper limit on the much you are willing to spend to lease or buy a car.

Use the 20/4/10 ratio when it comes to car financing. In other words, the down payment should be 20%.

Ideally, plan to pay the rest of the money in less than four years. Ensure the total maintenance won’t cost more than 10% of your gross income.

Choose between leasing and buying

You should look into the pros and cons of both leasing and renting so you can decide on the best route for you.

For instance, leasing requires a lower down payment with cheaper monthly installments than buying a vehicle. There is also the challenge of buying a car with little to no credit rating as you seek finances.

Fortunately, there is a solution available. You can look out for companies particularly offering bad credit auto loans to get financial assistance.

Some companies even help you do financial calculations to decide the price for a loan as well as the time. It will make it easier to access finances to make the purchase and repay back the loan over a longer period.

Select your preferred body style

The main body styles include sedans, hatchback, crossover, SUVs, and trucks.

Look into the pros and cons of each and assess which of the five styles will best serve your needs. Select multiple styles and browse the models with the best ratings in each category.

Draw a comparison between other vehicles

You may have your heart set out on a specific model, but what if there are better models out there in the same category?

Take a look at similar cars in the same class as the model of your choice and compare specifications, pricing, and features.

Estimate the cost of long-term ownership

A car might be cheaper to buy but more expensive to maintain and insure in the long run.

Factor in the cost of vehicle depreciation and fuel costs if you decide to go the route of owning a car. Estimating the long-term cost of ownership will save you lots of money going forward.

Schedule a test drive

After doing your extensive research and finding the car of your dreams, take it out for a test drive and see if the car can maneuver tight corners, drive over bumps and ensure it has sufficient cargo space.

It is advisable to avoid limiting yourself to just one car. If you are still not sure, sleep on it and decide on your verdict in the morning.

Wrap up

That’s it! We hope you can leverage our tips to help you find the right car and the financing options to help the process.

Thanks for reading! Please let me know your thoughts and comments below.

7 Tips To Help Choose The Right Car For Your Budget