As your family expends, you’ll likely want to buy a larger, more reliable vehicle. The car-buying process, however, can be somewhat intimidating for young families who are used to purchasing older and less expensive cars. Here are four tips for buying a car for your growing family.
When you have a young family, you’re bound to have unexpected expenses crop up. To deal with this uncertainty, it’s best to finance as little of your new car as possible and keep the monthly payment from eating up too much of your income. Saving up a down payment of at least 20 percent will allow you to get a favorable interest rate and reduce the size of your required payment.
Although a new car may be tempting, it’s usually a bad financial decision for a young family. New cars lose a large amount of value as soon as they leave the lot, and most young families simply can’t afford to throw extra money away. A better approach is to look for used cars from the last few model years. Buying used can save you the money you otherwise would lose quickly by buying a brand new car.
The need for a new car can pressure you to buy quickly, but it’s still important to do some comparison shopping first. Be sure to visit several local dealerships and check online listings for the best possible prices. If you’re willing to do some looking, you’ll likely be able to find a great deal on a used vehicle for your family.
One of the best ways to get a good deal on a reliable vehicle is to look for a mechanically sound car that has some cosmetic problems. Whether the car is just painted an ugly color or has dents and scratches, cosmetic problems can knock thousands of dollars off the purchase price of a vehicle. If you’re willing to drive an ugly car, you can pay much less for a very reliable vehicle that will meet all of your family’s transportation needs.
Using these four tips, you’ll be able to find a great car for your family at a price you can afford. Avoiding the urge to overspend on a vehicle purchase is critical for growing families, since they often run into child-related expenses they don’t see coming.