Thinking about buying a new car? Before falling in love with a flashy, high-
techno model, check your budget first.
Sara Parker, from Utah Central Credit Union shares some wise advice on
how to make sure your investment is a smart one.
A few tips:
· Keep the cost of all your cars less than half your annual income.
· A pre-approved loan from a financial institution will help you stay
within your budgetary boundaries, thus avoiding the impulse to buy a car
you don’t need or can’t afford.
· One basic rule of thumb is that you should finance your car for a
three year term. If you cannot afford the payment that accompanies this
amount, then you cannot afford the car.
· According to bankrate.com, credit unions usually offer better loan
rates for cars than banks. Utah Central offers several auto loan rates as low
as 2.74%.
Looking for a more fuel efficient car? Find the best models by going to www.kiplingers.com or the
Department of Energy web site: www.fueleconomy.gov/feg/best-worst.shtml . Some
cars now get an astounding 106 to 126 miles per gallon, so shop around.
Car dealers are starting to emerge from the recession with more discounts,
rebates and low-financing options. Look closely at potential “deals” but
remember that some of these offers are only for certain models and makes,
so it’s good to read the fine print.
Lastly, buying a car is just the first step. There will be fuel, maintenance
and insurance costs along the way. With today’s gas prices, you can expect
to spend between $2,000 and $2,500 per year on gas alone.
For more information, contact Utah Central Credit Union. You can find
them online at https://www.utahcentral.com/
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