When the new model year rolls out it can be tempting to head to the dealership and sign for a new car. But now might not be the best time. So when is a good time to buy a car? It’s different for everyone.
Here are a few questions to see if it’s the right time for you to purchase a new car:
Are My Finances in Check?
Answer these honestly: Do you have a handle on your budget and finances? Do you have outstanding debt that isn’t in your budget? If the answer to either of these questions is no, it’s probably not the right time to jump. If your lack of budget is the only thing that’s holding you back, learn how to build a budget here.
Why am I Getting a New Car?
Before you make a major purchase, it’s important to know why you are doing this. Are you trying to compete with your neighbors or friends? Or are you looking to upgrade because your car is damaged? If your annual repair bill is more than a years’ worth of car payments, it’s time for a new car. But if you’re just trying to have the coolest ride in town, it might not be the right time to buy.
Have My Needs Changed?
Has your family expanded and you find yourself not being able to fit everyone in comfortably? It might be time for a new car. Maybe it’s the opposite, your kids have gone away to college or they have their own ride. There are many times when your needs for a specific type of car can change, if this is the case it might be time to change.
How Will This Impact My Insurance?
You might have the money for a new car in your budget, but don’t forget about your auto insurance. Purchasing a new car could drive up your insurance rate. Before purchasing a new car, call your insurance agent to get a quote for your new car. This is also the perfect time to search for savings by getting free quotes from other insurance companies, like Michigan First Insurance Agency.
Every purchase in life, big or small, shouldn’t be fueled by want alone and a car is no different. Knowing when a want becomes a need and how to differentiate the two can help reduce impulse buys and keep your budget on track.
Are you ready to buy? Learn more about the benefits of getting pre-approved here.