Car repos rise

About 70 percent of new-car purchases are financed. So unless you plan to pay cash or are going to borrow from a bank, chances are you will be financing your purchase with the dealer. Determine your financial situation. Calculate your monthly budget. Buying a car involves more than a down payment and monthly payments.

In your budget include licensing, registration, monthly insurance costs, gas and maintenance.A good rule of thumb is roughly 20 percent of your net income can be used for a car payment. Decide which car you want. Find vehicles in your price range. Look at what your needs are. Do you have a family? There are plenty of affordable, safe and reliable minivans and station wagons on the market.

Single and commute, or do a lot of city driving? The compact segment has a wide range of models that boast handling and superior gas mileage. Do you use your vehicle for work, such as hauling, delivery, etc.? Check light and heavy-duty pickup trucks and vans. Also consider your wants. Compact cars get really good gas mileage and are great if you want to save money on the increasing gas prices. Do your homework.

Check out the Internet and newspapers, contact car dealerships, credit unions and local banks to see what kind of deal you can get. Knowing what a car dealer’s competition is offering can help you in the negotiating process. Find the lowest possible interest rate. Many car buyers focus on getting the lowest possible down payment, but the dealer has to make back the money you are saving. Find out about a manufacturer’s incentive percentage. Look out for rebates.