When is the right time to buy a car? There are a lot of factors that go into determining that, from needing to replace an older vehicle, seeking the latest tech and performance, having room in your budget, and current loan rates and special offers.
The bottom line is that it can always be the “right time” if you take care to be completely prepared when you go to purchase a new set of wheels.
Here are some helpful tips to help you determine when purchasing a new vehicle is right for you and your budget.
Determine How Much You Can Afford
The best way to start is to determine how much you can afford to buy a car outright or with the assistance of a vehicle loan. Auto loan terms for personal vehicles run from 36 to 90 months, giving plenty of options to help monthly payments fit comfortably in household budgets. Keep in mind that ideally, auto payments should take no more than 10 to 15 percent of your take-home pay.
You can explore how much car you can afford using SAFE’s convenient auto loan calculator. The calculator takes into consideration down payment, trade-in values, loan terms, and interest rates. You can also input the highest monthly payment you can afford to learn your options.
Find SAFE’s latest auto loan rates on our website.
Find the Right Car for Your Needs
Now that you know how much car you can afford, it’s time to start searching for the right car in your budget. Consider your priorities and what you’ll need in the car. Do you want an EV for an urban commute? An SUV for taking kids to school, sports, and playdates? Looking for a snazzy sports car? It helps to have a clear idea of what you are looking for and fine-tune your search for vehicles that match your needs and your budget.
Get Your Funding Lined Up
Before you visit your first dealership or make an offer online, it’s best to have your financing already squared away. This helps with two things: you will have your interest rate and monthly payment lined up, and you are able to make an offer immediately when you find the right car.
We make applying for a vehicle loan easy at SAFE. You can apply directly in the SAFE Mobile App, Online Banking, or by scheduling an appointment to have a SAFE representative help you directly. In many cases, we will let you know whether you’ve been approved and the loan details in less than an hour. Our friendly and knowledgeable auto loan team is ready to assist with any questions!
Learn more about our vehicle loans here.
Shop For the Right Deal
While it can be thrilling to get a brand-new car, you may find that you will get the best value with a used vehicle. It is true that the value of a brand-new car drops as soon as you drive it off the lot! When shopping, expand your range to include used vehicles that have the features you’re looking for. You may also be able to negotiate prices of used vehicles more easily than with new ones.
Another tip is to shop during the times of year when dealerships hold sales, such as around holiday weekends. The end of the year can be a particularly good time to shop for vehicles as dealerships seek to clear out the previous year’s inventory for new vehicles coming in.
Special Tax Incentive
For a limited time, car buyers may be able to take advantage of a special tax deduction of interest paid on auto loans on qualifying vehicles. Eligible vehicle purchases must include:
- Vehicles must be new, not used.
- Original owner of the vehicle.
- Vehicles must have been purchased and secured by a lien after December 31, 2024.
- Cars, minivans, sport utility vehicles, pickup trucks and motorcycles that weigh less than 14,000 pounds and are made primarily for public streets and highways are eligible.
- The vehicle must be for personal use, not for business or commercial use.
- The deduction is available only for vehicles whose final assembly took place in the United States. Car shoppers can find that information on the window sticker and the VIN. You can look what VIN is associated with which country through the National Highway Traffic Safety Administration.
You can read more about the tax incentive here. If you have questions about your specific situation, SAFE recommends contacting a tax professional.
SAFE is Here to Help
When you’re ready to purchase a new vehicle, SAFE is here to help! Contact us and we’ll work with you to find the right financing to get you behind the wheel of a new vehicle!
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