| If you finally decided to get rid of your old and | | | | there are alternatives. If the banks, building |
| ugly car, don't jump into a car buying without | | | | societies and credit unions won't lend to you |
| calculating. | | | | because you're self employed, newly arrived in |
| It's o.k. that you already know what you want. | | | | the country or have a poor credit history, |
| The latest Ferrari model, of course. The red one | | | | consider the booming non-conforming and "low |
| you saw at But maybe you should reconsider it. | | | | doc" loan market. |
| By the way, did you know that red cars and | | | | A number of non-bank lenders offer loans which |
| sports type cars are stopped more often? | | | | especially cater for this type of borrower. The |
| Purchasing a new car is a complicated financial | | | | interest rates on non-conforming loans are |
| operation and a highlight of your life. Take it | | | | generally higher but come down after a few |
| seriously. | | | | years of on-time repayments. |
| First, have a look at your family budget. Sit down | | | | Think about all the expenses of a car: Insurance |
| and check all your household expenses, as well as | | | | rates, fuel costs, maintenance, repair and not only |
| cash on hand and your take-home pay and | | | | the purchase price. Some luxury cars and not |
| determine what you can reasonably afford to pay | | | | American-made cars cost more to repair. |
| for a new car. According to the experts you | | | | Decide if you want to buy a new car or a used |
| shouldn't spend on your car more than 20 percent | | | | one. Both have pros and cons. A used car costs |
| of your monthly income. | | | | significantly cheaper but there is no |
| Afterwards check your credit. Start this process | | | | comprehensive new-car warranty, not as many |
| months before you plan to purchase, if possible, | | | | safety and convenience features but a |
| because if you have incorrect or outdated | | | | questionable maintenance. |
| information that's lowering your score - and | | | | As for the timing, the two best times of the year |
| therefore raising the interest rate you'll have to | | | | to buy a car are the end of December (when |
| pay - it can removed, but it takes at least 60 to | | | | dealers are competing for Christmas shoppers) |
| 90 days. | | | | and between July and October (when dealers are |
| To calculate monthly payments, you should factor | | | | making room for new models). |
| in proposed purchase price, the down payment, | | | | You should also consider what's the primary use |
| interest rate and term of your loan. All will affect | | | | of the car, who'll drive, where will you use the car |
| how much you can afford to spend on your car. | | | | and so on. |
| Don't worry if you can't get a standard loan, | | | | |