Whether right around the corner or down the road, the time will come when you need to buy another vehicle.

That said it is important to be smart with your finances when the time arrives to get another car or truck. Not doing so can lead to financial headaches that can drive you crazy.

So, will you make sure you watch over your finances when the time comes for you to buy your next auto?

Don’t Get Stuck Going in Reverse with Your Finances

In being smart about your money before buying your next auto, keep a few pointers in mind:

1. What do your finances look like? – The key thing before buying another auto is having a strong sense of what your financial picture is. That said are you in good financial shape or having struggles now? If the latter; buying a new or used vehicle may not be in your best interests. When struggling with money, such a move could leave you in dire straits. Your best bet is to try and hold off on buying until your financial picture hopefully improves. If a monthly auto payment is going to put even more pressure on you, do you in fact want that?
2. What will be the added costs? – Keep in mind that the time to go car shopping means a myriad of new costs more times than not. For example, you could not only be looking at a monthly payment but also higher costs for insurance. You can also throw in the costs for tags and title. Before you know it, those expenses could balloon. If you are leaning towards buying a used car or truck, you have to factor in potential maintenance costs too. With a brand new vehicle, you will be guaranteed to have a warranty. When buying something older, you may or may not have a limited warranty given the age of the vehicle. Do your research to see what potential maintenance you may have now or down the road. If buying an older vehicle, also do your homework to see if it has been in any notable accidents. Such accidents can compromise the integrity of a vehicle and make it less safe for the roads.
3. What you will use the vehicle for – How you will use your next vehicle will also factor into how you do with your money. That said have a general idea of what your plans are before buying. As an example, do you plan to use the vehicle for a long commute to and from work? If so, you want to be sure the vehicle is up to the task. If you buy something not good on gas mileage, long commutes can eat into your wallet. Also, if you will allow your teen to drive your next car, will they help with any of the costs such as gas and maintenance? Teens can tend to be rougher on things. As such, your vehicle may take a pounding from your young one driving it.

When you are going to get another car or truck, money will likely play a big factor in what you buy.

That said be smart with your finances so are you not driven to problems.

James Montano