Buying a new car stands out as the second most expensive purchase made by the average American household, only behind buying a home. In order to prevent tens of thousands of dollars going to waste, buyers should consider a few important factors prior to buying a car. Budgeting is the most important aspect of car buying, as missed car payments will eventually result in the car being repossessed at a significant loss to the owner. A family or individual must take personal circumstances into account, but in general all car-related expenses should account for no more than 20 percent of a household’s monthly spending.
While price dictates a large part of the car buying process, car buyers should also assemble a list of features and styles they like. This list will help mitigate the overwhelming sensation a person can feel when shopping through the hundreds of cars on a lot and the thousands online by focusing the search on a few key elements.