Buying a Car in Today's Economy - Car Shopping Tips

3 Common Mistakes to Avoid When New Car Shopping Before you do any research on a used or new vehicle you have to figure out how much within your budget to invest. The general rule of thumb that the payment per month should not exceed 20% of your monthly acquire pay (not your gross income). This rule applies to car payments as a whole. If you are making payments on two vehicles, the entire of the payments for both vehicles shouldnt exceed 20% of your respective monthly net income. Knowing how much car you really can afford is very important because it could keep you from becoming upside-down on the loan - meaning your debt a lot more than the automobile is worth. According to , almost 25% of Americans are upside-down on his or her automobile financing, with an average of $4,442 in negative equity. Being upside-down really can hurt you when you go to get your next vehicle because many people sell or trade in vehicles they own and use that money like a deposit on their own next car. No matter the time of year, car dealerships will unveil deals to have people to come see what exactly is new, and what pre-owned models are available to buy. Most assuredly should you be in the market for another car - if they should supplement your growing family as well as to replace the once reliable family vehicle - you should weigh the pros and cons of purchasing now, and anticipate the state of oil prices ahead. 2. Know how much your automobile may be worth. This years truck information mill hotter than asphalt in August. A perfect storm of sorts (last years Japanese tsunami, a rebounding economy, and fewer individuals with the cash to buy a brand new car) has generated a shortage of used cars that has led to rising prices for several years now. Not that any car dealer is obligated to tell you when you mention you need to trade-in your existing vehicle, however. Quite the opposite. Theyre not obligated to give away any information you do not possess already. So appear finding out how much your vehicle will probably be worth, and when they just dont come near enough, market it yourself. Seriously, sell it yourself-its not really that hard (see the internet, above). When I was 16, my dad told me that the best Id manage to have a car is the place I could put gas inside it and pay for the auto insurance. He explained that when I couldnt put gas in a vehicle, I had no enterprise owning one. No matter how much I bugged him to visit car shopping, he wouldnt budge. I got a part-time job and worked up to I could. I saved my money together enough on your bottom line to convince him that I was ready to the responsibility. I got my car and took care of it. My dad reduced the problem with major repairs, but I always put money towards them. I wanted showing him that I listened to what he was quoted saying; I was responsible. Determining how much you can afford isnt an exact science. Even if you usually do not keep to the 20% rule exactly, anyway you need to sit down and find out your expenses. This simple exercise can help you avoid stretching yourself too thin, and help you save from the need to make tough decisions as time goes on should your financial circumstances changes to the worse. car insurance for learner drivers read more (click here)