Families need cars. They’ve become an essential part of life, mainly because of how our cities are built. Family homes are in the suburbs. Therefore, if you want to go to the store or take your kids to school, you almost always need your own vehicle.
Unfortunately,cars are becoming increasingly expensive。所有额外的安全功能和监管要求都会导致更高的价格。
What’s more, they’re downright expensive to run. Fuel prices are going through the roof, and many families are worried about how they are going to make ends meet. Buying a car feels like a scary prospect.
Figure Out Your Budget
Most finance professionals recommend that you spend no more than 10 to 15 percent of your annual income on a car. That means that if your household income is $50,000, you should be looking to spend between $5,000 and $7,500 on a vehicle.
That’s not a great deal when you consider the grand scheme of things. Hardly any manufacturers make vehicles brand new at that price. However, you should be able to find good deals on the used car market.
Remember, that’s just the购买价格新车辆。您还需要确保您的运行成本（例如汽油，保险和维护）不会超过年收入的20％。如果他们这样做，那么您可能很难在其他地方进行预算，例如在您的家中。
How To Work Out What You Can Afford
在购买汽车之前，您应该考虑这些费用中的每一个individually. This way, you can build a more accurate picture of what you can afford.
Start by exploring the trade-in value of your existing vehicle, if you already have one. Trading in a car can make your new purchase cheaper by taking advantage of some of the capital you’ve already built up. (This is not a good option if you are still paying off the old loan).
However, it might be affordable if you could get some money for your old vehicle. Let’s say that your current car is worth $15,000. The new vehicle would then cost you the same amount, which is sustainable on a household income of $100,000.
接下来,您将需要考虑贷款期限,is, how long your loan will last. Most car loan schemes run between two and seven years. It doesn’t make much sense to go beyond that because of depreciation. There’s a risk that the car could wind up being worth less than the loan you own on it.
While saving for a deposit on a vehicle is annoying, it can help prevent you from going upside down – owing more on your vehicle than it is actually worth because of depreciation.
Consider The Monthly Total Payments
例如，假设您的带回家薪水为$ 3,500。这意味着您每月还能支付350至525美元的$ 525。
If you need to lower your monthly payments, you can. Just ask the dealer to extend the loan term. Just remember that if you pay for a car slowly over time, it’ll eat into your long-term wealth.
Consider Your Buying Options
The most obvious option is to buy new. This approach is popular among people who love that new car smell and want to avoid maintenance issues for the foreseeable future.
If you do decide to go down this path, be aware that your investment will depreciate in value rapidly. Most vehicles lose around 50 percent of their value in the first five years.
Also, be aware that dealers charge different fees for selling your vehicles. Therefore, prices can vary significantly from one to the next. They may not represent the going market rate.
The next option is to buy a used vehicle. Prices tend to be considerably lower (reflecting depreciation) but reliability becomes an issue. You may have to spend more on maintenance than if you bought a new car.
Buying used cars reduces monthly payments. Their value tends to depreciate considerably slower in absolute terms, so there is less risk of going “upside down.”
You may also want toconsider an extended car warranty如果您选择这两种方法。这样，您就可以在不是您的错的车辆中获得更多保护制造商故障。这些政策可以帮助您降低随着时间的推移一些模型的长期维修成本。
The last option is to lease your car. This approach is perhaps the simplest because you never take ownership of the vehicle. Instead, you just pay a monthly fee for the services the car provides. Fees typically include everything you need, except fuel, so you can easily work out whether you’re within budget or not.
How much car you can afford depends on your pre-tax salary. People earning $25,000 per year should aim to keep their car spending capped to around $208 per month. Those on $50,000 can afford up to $420 per month. Above $75,000 and monthly car expenses can be as high as $625 per month.
Other Factors To Consider
Let’s say, for example, that you love cars and having a high-end model matters a great deal to you. If this is the case, then it makes sense to spend more on a vehicle and cut down on other things, like housing expenses or假期。
You might also want to consider whether owning a vehicle is worth it at all, given your lifestyle. If you live in the city center, hiring a vehicle might work out as cheaper.