Buying a Car

Finding the perfect car can be exciting, but with so many makes, styles and options to choose from, the decision can be mind boggling. With prices for new cars, trucks and SUVs increasing every year, making a wise financial decision is just as important as picking the right vehicle. Buying a new car is a significant financial commitment, and one that should be protected with adequate insurance protection. Planning this protection starts with a solid understanding of the costs of buying and maintaining your new vehicle. To learn more see below:

How much does a new car cost?
How much can I afford?

How much does a new car cost?
New car prices vary significantly, based on style, make and the options you choose. According to the Office of Transportation Technology, the average price of a new car was $22,000. United States brand cars (Ford, Chrysler, General Motors) averaged just under $20,000, while import cars were more than $25,000. Prices for SUVs and luxury automobiles cost can be even more based on the make and model you choose. In addition to the purchase price of your car, make sure you add any sales taxes that you are required to pay, extended service policies and licensing fees.

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How much can I afford?
The monthly cost of your new vehicle can vary based on financing options that are available. One key measure of affordability is your household's debt-to-income ratio. Ideally, your total monthly debt - including your expected housing costs plus credit card bills and loan payments - shouldn't exceed 38% of your monthly gross income, and preferably not more than 36%.

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