 | rad Train is the General Manager overseeing day-to-day operations of Saturn West & Saturn East for the owner Scott Davies. He joined the Wichita Saturn team in 1994 as a Sales Consultant, after 3 years he entered the Saturn Management Team. Brad is a graduate of Southeast High and Butler Community College. He and his wife Michelle have 3 children; Shelby, Andrew and Jacob. You can contact Brad at (316)219-5500, or by e-mail at bradtrain@saturnwichita.com |
Cars, Trucks, Vans & Automotive
1969-12-31 18:00:00
Budget for a new car
Question: Is there a method to help me figure out if my budget will allow me to purchase a new car?
Answer: It's easy to overspend on a new car, but there are ways to avoid 'busting' your budget. Have you established your budget? It's always a good idea to start the car-buying process with a budget planning session to help you determine how much car your money can buy, how much money you feel comfortable about spending. A new car purchase is typically the largest consumer purchase after a house. It's all too easy to buy a car you really can't afford. By overextending yourself for the sake of a new car you face more than just giving up vacations or nights out on the town. You could be putting your financial security at risk. New car owners may experience "buyer's remorse" after purchasing, because they've allowed their emotions to control their spending. All too often, emotions overrule logic and people get into trouble. If you can't afford it, don't buy the car! Just because you've qualified for a certain loan amount, it doesn't necessarily mean that you can afford to pay that amount. Qualifying for a loan simply means you have satisfied the bank's or other lender's concerns about your financial means to repay. Lending institutions use mathematical formulas to determine your repayment capabilities. Some lenders use an applicant's credit report as the basis for their figuring, while others use an applicant's debt-to-income ratio. The two methods can produce different results. Qualifications based on your credit report will present you with an idea of the amount you're willing to pay, while qualification based on debt-to-income ratio will tell you what you're able to pay. You can obtain a copy of your credit report from any or all of the three national credit-reporting agencies. If your installment debts consist entirely of amounts owed to large lenders such as major credit card companies, banks, or automobile finance companies, you may only need to obtain a report from a single agency. (It's a good idea to review your credit report every year or so even if you’re not in the buying mode.) Use these tools to help with your new car purchase: establish a budget, shop within that budget, and use your head not your heart to guide you. This purchase might not be the car of your dreams, but with proper planning, it won't become the car in your nightmares!
