Whether you are a teenager that has been yearning for the day that you buy your first car or a full time worker that is simply buying a car to help make your daily transportation to and from work a little easier, making the decision to buy your first car is a big one. This is especially true if you do not have much knowledge about cars and the current market prices for used and new cars. If you are a teenager, you may have a dream car in mind that you want to get however, you might be surprised to find that your dream car is well out of your reach and therefore you need to down grade to a more practical and affordable solution.
As a working adult however, you will have a better idea of the kind of car that you would like to buy as well as a strong idea about what your available finances are. This said however, it is important to remember that if you cannot afford to pay at least twenty percent of the cars value as a down payment when buying the car and if the balance installments are not a maximum of thirty percent of your monthly earnings, then the car is probably not for you. If you make the mistake of paying a small down payment and end up paying installments on the car for more than a two year period, you might be unpleasantly surprised to find that you have paid more for your car than the cars actual value and therefore will be making a big loss at the time of selling, if you are still able to resell. If you are unsure of these values and the exact figures, you may want to hire a buyers agent who will have a deeper knowledge on the subject and will be able to advise you accordingly.
Set a budget
It is very important that you work out your finances beforehand and set a solid budget for your purchase before you even visit the car sales outlet. The reason for this is that when the buyers agent in Sydney Inner West starts marketing vehicles to you, you may unknowingly spend or agree to more than you can afford.
When setting your budget, consider your current savings and what percentage of your savings you are willing to put down on your initial deposit for your car. After you have done this, you will need to consider your monthly income and then make a realistic decision about how much you can pay down on your car every month after you have taken care of your regular expenses.