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Buying a new car is usually a major financial decision in the lives of most people in the US and worldwide. It is also a complex process that includes various components and costs to consider. Acquiring a new car, therefore, requires careful preparation and planning. Find out below how to secure financial success while getting your dream car.

What is the average cost of a new car?

The average price of a new car is around 47.000 dollars in 2024. However, the prices vary greatly depending on the car model, brand, and equipment. Financial experts recommend that the monthly car payment does not exceed 15% of your monthly net income.

Getting a new or used car?

Deciding whether to get a brand-new car or a used vehicle will have a considerable impact on your private economy. Unlike real estate, most cars lose up to 50% of their original value within the first three years. Choosing a used but excellent car can make the entire deal more affordable.

Defining your car needs

Specifying your needs is crucial to secure an affordable new car. Key questions include:

  • Family car or focus on engine performance?
  • Petrol or diesel car?
  • Vehicle for city or longer distances?
  • Eco-friendly or conventional car?

It is important to prioritize the need to have over nice-to-have components when buying a new car at a reasonable cost. The most suitable car will, therefore, differ greatly from person to person.

Additional costs to consider

Buying a new car also includes additional costs that should be taken into account when setting a budget. They often include the following:

  • Buying potentially new high-quality tires
  • Monthly gasoline expenses
  • Insurance fees
  • Maintenance costs
  • Additional car equipment such a new radio equipment etc.

Consider getting a “run out” model

Individuals who insist on buying a new car can still save money by focusing on “run out” models that are in the process of being replaced by newer vehicles. It is possible in some cases to save up to 30% of the total cost by choosing such a model.

Choose among brands that hold their value over time

It has already been mentioned that most cars lose much of their value within the first three years. However, some car brands tend to hold their value better than others. Choosing a car brand with an attractive resale value is important when buying an affordable new car.

Choosing a cost-efficient and reliable car

Seriously consider whether you really need the engine with the extra horsepower. Choosing a cost-efficient car is an important dimension when buying an affordable vehicle. It is not a secret that cars with smaller engines tend to be cheaper than those with larger ones. If the car is mainly supposed to be used in the city, a smaller and cost-efficient car can do the trick while simultaneously being easier to park in congested spaces.

What to avoid when buying a new car

The abovementioned tips are important in order to secure a satisfactory and affordable new car. Furthermore, it is also important to avoid the following mistakes that are especially common among first-time buyers.

  • Don’t let emotions cloud your judgment and potentially strain your economy when buying a new vehicle.
  • Do not accept offers without first trying to negotiate a more attractive deal
  • Avoid making the decision alone and try involving a family member or friend with extensive car experience

Conclusion

Buying a new car is usually a major financial decision for most American families, whether it’s for the school run, road trips, or trips to work. It is a complex process where many issues need to be factored in. It is, therefore, crucial to carefully plan your new car project. Defining your needs is a key issue that will determine the overall cost of the new car. Car purchases can be made more affordable by potentially choosing used or “run out” models. Furthermore, it is important to consider a cost-efficient car with an attractive resale value. Purchasing a car also involves additional costs, such as buying new tires, car insurance, maintenance, and gasoline expenses.