22 - 2013

Looking Good On The Cheap: Auto Edition

There is nothing worse than falling in love with a car that you cannot afford. Expensive cars can have sleek designs and unique features. But if you’re working with a modest budget, you might have to put your dream car on hold.

Before pushing a certain type of car out of your mind, consider ways to make the purchase happen. You shouldn’t buy a car that’s outside your budget and risk financial ruin. However, plenty of people with average incomes drive expensive cars. What’s the secret?

If you have your eyes set on an expensive car, here are a few ways to get the car of your dream.

  • Buy used. Brand new cars are priced higher, but if you wait a year or two, you can purchase the same vehicle for less – about 30% less. A car that’s a couple of years old is practically brand new. And because expensive cars are built with quality parts, you won’t deal with repairs for at least a few more years. Check with dealerships that offer a certified used car program. These cars have been properly maintained over the years and kept in pristine condition. Plus, used cars depreciate at a slower rate and hold their value longer than brand new cars.
  • Spread out your car loan payment. Maybe you prefer paying off your vehicle loan in three or four years. This makes good financial sense because you’ll pay less interest over the life of your loan. But if you’re buying an expensive car, stretching your vehicle loan to 60 months helps lower your monthly payment. There is also the option of paying on a luxury car for up to 72 months. You pay more interest, which increases the final price of the car. But if you’re someone who drives the same car for eight, nine or ten years, a longer loan term might work. If you go with a longer term, consider a down payment to alleviate an upside down loan.
  • Trade-in or sell your old car. If you’re toying with whether to sell or keep your paid off car, considering getting rid of the car and putting the proceeds toward your new vehicle purchase. Let’s say you want to purchase a $50,000 car. If you sell your paid off car for $12,000 and use this cash as a down payment, you’ll knock your new car price down to $38,000. Purchase a used expensive car with the same down payment and pay even less.
  • Lease an expensive car. You don’t need a down payment to lease a car, and since the payment on a lease is cheaper than buying, you can get an expensive car for less. Leasing can work if you don’t plan on driving the same car for five years and you want to avoid costly future repairs. Sites such as www.jbainfiniti.com can help you find an excellent lease deal on a luxury car.

There are various finance options available and several ways to get an expensive car on the cheap. You don’t have to spend your life’s savings. Discuss what you’re looking for with your dealer and work out a finance plan to fit your budget. If you’re able to purchase a luxury vehicle, you’re going to need deluxe car storage to protect your investment.

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