Wait 3 Months Before Buying A New Car

Wait Three Months Before Buying a New Car (but Save Now)

Driving a new car can be a great experience, but paying for it is a lousy one. To balance the need for a new car against your financial resources, consider a three-month waiting period before buying a new car.

Photo by Stew Dean.

No, this isn't advice about impulse buying, but rather getting used to the burden of monthly payments. Once you have an idea which car you want, figure out your monthly payments for that car (remember to include insurance). Take that money out of your bank account for three continuous months. Setting up a separate savings account for this money is a smart idea.

After the three months, see if you can afford the payments. If so, then buy the car. Bonus: you'll have money for some of the down payment saved up. If not, then you know the timing isn't right and you can use the saved money to help pay maintenance costs to keep the old car running.

Check out the link for other considerations when deciding whether to buy a new car or stick with your old one.

Keep Your Clunker or Buy a New Car [The Motley Fool]


Comments

    Best advice that I received on this subject was from my Dad, who said "Save up and buy your first car brand new and with cash". Did that after saving up for 4 years and all my cars (many) have been paid for in cash.

    Also you don't need a new $15-80,000 car, just get it second hand even a few years and most models have drop by at least 1/3 of the price. Apart from salary sacraficong and fleet purposes, I don't know why anyone would get a new car. You're basically throwing away $5-20,000. Would you really pay $5-20,000 in repairs in a few years? Obviously with a lon you could, but most cars aren't lemons and you can get a few mechanics to look over protective suitors.

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