Your New Car Budget
If you’re paying for your car by means of finance or lease, as a general rule, car payments should not exceed 20% of your monthly take-home pay | Try our Car Loan Calculator.
Before you set out to negotiate a new car purchase, setting your budget is critical. You must know your own financial parameters better than anyone when you buy a car….
Car Finance Tips
Be careful not to get roped into finance solely on the premise a company can match or better a payment you’ve already been quoted – DO NOT! Especially if they say: “But we could have you driving that car for this amount or maybe less – or this much better car for just a little more!”
This often means you’d be about to pay much more money for your car over a much longer period of time, and/or have a ‘balloon’ payment to deal with at the end of the term. That is: You still owe 10 to 40% (or more) of the original purchase price at the end of the term.
I have seen many people try and get out of their current car and into another at various stages of these types of contracts and they just can’t.
Usually it goes something like this: They owe 20,000 on their car (lease or finance) and the car is worth 9000 (and going down) – If they sell or trade for 9000, somehow they must find 11,000 before they start fresh, or even worse, they re-finance some of the shortfall (If they can find a finance company who is prepared to do it)…
…This of course leaves them in a much worse predicament at the end of the next one. As you can see, this is not the position to negotiate a great deal from.
Therefore I recommend AVOIDING ‘Balloon’ or ‘Residual’ payments at the end of a contract if possible.
To reduce the amount of interest you pay over the term of the contract, have your payments structured over the shortest time period affordable to you. Shorter time period, equals less interest.
At Any New Car our buying power is saving new car buyers $1000’s everyday on new Mazda, Honda, Holden, Subaru, BMW, Toyota – absolutely any new car.
If you’ve decided on the exact the new car you’re buying, and you’d like us to negotiate the best price for you…