How To Buy A Car Without Breaking The Bank

You have a decent job, are working your ass off and think it’s time to trade in that ’03 Toyota for a new whip. How much can you afford, should you buy or lease, go with new or used? With all the questions here are a few tips to help you make the best decision.

Budget: Figure out what you’re comfortable spending. As a rule-of-thumb, spend no more than 30% of what you make in a year on your car.

Narrow your choices: Narrow your choice of cars to two specific models and contact as many dealers/sellers as you can. Bid each seller against the others by letting them know what your other offers are.

New or used: A new BMW 3-series will cost you around $40K. One 3-years-old with under 20K miles can be $25K or less. Go used.


Leases can be a good option: Despite everything your dad has told you, leases can be a good option. It’s a new car, there’s no worrying about resale or a big down payment, and you turn it in for a new one every couple years. It’s like dating instead of marrying – more expensive in the short-term, but certainly less stressful …and no divorces.

Remember, the more you save on this car, the more you can spend on the next. Skip the Beemer today and buy a Bentley tomorrow.

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