07/27/2021
So at a wedding last month I had a young lady in her 20's inform me she was thinking of buying a new car, but her huddle was that she had never bought a new car and didn't know how to go about about it. Not everyone has a Mom and Dad to assist them in good practices for buying a car. While this girl did have a wonderful family, even she was weary of the car buying process.
We here at KSB Auto Concierge, Care about the KSB Difference. So today we're gonna give you a step by step guide to how to purchase a Vehicle within your means.
(How to buy a car by KSB)
Step 1: Determine a budget
Since we are speaking of young people for this example I am not going to be using an exorbent amount. We're going to be using the Median American Income of a 25 somethings household. (70,283$)
Loan Analysts Say you should spend no more then 10% and 20% of your income on a vehicle. So what does that mean.
So we will assume 2 people in the household. All of our next values will be halved as most households won't spend all thier money one vehicle but 2. So our income is (35,283/70,283) First we need to remove tax from our income. Leaving us with (28,226.40). We will then divide that by 12 to get a monthly income (2352.20).
Our monthly car budget with all this would be. Between 235.22 and 470.44.
So how much car can we afford? With those numbers. So the calculation once you have your monthly budget is (Budget-60)/20x1000
So in our case. 235.22-60=175.22/20=8.76*1000= ($8, 761-17,522) is our final car budget.
Step 2: Find a car!
We here at KSB Auto Concierge are car enthusiasts. Finding cars always makes us happy. We're friend of with GMs at each Dealership and can assist you and finding something that fits your needs. Just Call Us!
Lets remember some things before we get started, Trucks and Jeeps hold value really well. Sports Cars usually hold value. A vehicle doesn't always have to be chosen because it's practical. You can pick the Vehicles you like! Car loans only last a maximum of 6 years. Don't drive something you hate.
My favorite website for buying cars is by far CarGurus. The filtering is easy. Determine what you want is easy. I'm obviously obsessed with wanting cars on the other side of country. NBD.
But determine if you need 4 doors.
Determine if you need FWD or RWD.
Determine if you need a truck bed.
Find the Exact one you want! Youre gonna need the VIN number of the vehicle of the Vehicle for Step 3.
If you need help to determine what Vehicle is right for you Call Us! We know most vehicle inside and out and can point you in a direction!
Step 3: Obtain Funding and Secure the Vehicle
While you can just waltz into the dealership of the Vehicle you've found and find your friendliest salesman and buy the car. Sometimes you want to have your guns ready so you don't spend all day at the damn place!
Remember in Step 2 when you obtained the VIN for the car you wanted? You can now call the bank you use and get a loan (Quick Tip: If you aren't with a credit union, get with the program) You can also go ahead and call your insurance company and get quote.
Once you've gotten your insurance quote and your approval notice from the bank. It's time to find that friend salesman and sign paperwork. Now the salesman may try to get you to finance the car through them as opposed to you Bank. At the end of the day it doesn't matter who you Finance with. It matters who has the best interest rate and what kind of fees they're trying to add to the cost of the car that is going to affect your bottom line so pay attention to both.
Step 4 Schedule your first service With KSB
After you've found your friendly salesman and signed your paperwork, taken delivery of your vehicle. It's time to call the experts at KSB and have our Auto Consultant Experts protect your purchase for years to come.
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