Five Things to Consider Before Getting a New Car

A lemon. The official name you give to a car that is a piece of junk. If you're like me you have some experience driving such a car. The grass always seems greener on the other side, or in this case the road always seems smoother in the other car. if you're thinking about making the transition into a new vehicle there are a few things you should consider first.

Do you want a car payment- If your like most people a new car means financing. This means a monthly car payment. Consider strongly if you are prepared to make this payment. For most vehicles you will be locked in to paying that 300 dollars plus for four to six years. Consider your current state of finances and whether or not you are willing to make such a payment. Consider buying a used car that is low in miles so that you can pay a little bit less. You might also think about your current job and how much you like or don't like it. If you get that new car, you will have to work!

Is your current car reliable- Often people think they have a lemon when they really don't. A lemon is a car that is not reliable. A car can be cosmetically horrible, but still be reliable. If your car runs well and is dependable then it may not be time to get a new car. Avoid focusing on how the car looks especially if you are in a financial situation that really is not good. Don't lock yourself into years of payments simply because you want to impress people at a stop light. Instead but your energy into improving your financial state

Insurance Cost- If you purchase a new car you will have to have full-coverage insurance. This is not the case for a used car that is paid for. You need to shop around and determine whether or not you will won't to fork out the money for the full-coverage insurance. Combined with a new car payment you could be paying a good chunk of money just to drive around in new car.

Fuel Cost- Current gas prices are averaging over $3.00 a gallon. Signs of this price dropping are no where in site. Do you currently have a car that is good on gas mileage? If it's reliable you might want reconsider making a move to a new car. Certainly if you purchase a new car you need to consider what fuel will cost you in a new vehicle. Often SUV's and trucks cost much more to fuel than your typical small to mid-sized car.

Paying Cash- It might sound foreign but the idea of paying cash for a car is really a good one. Usually you can get a good deal on a car if you're willing to pay for it upfront. Furthermore, if don't make a lot of money, shopping for a car for a couple grand is a great idea. You may have to sacrifice some time to save up the money, but it is worth not having years of car payments as you are trying to get your finances together.