 TITLE: When Is the Best Time to Buy a Car? CONTENT: Make Sure Your Finances Are in Order\n------------------------------------\nAs with any major purchase, it's best to avoid buying a car unless you have the means to do so. Create a budget to get an idea of your income and expenses, and how much room you have for a car payment—assuming you're not planning to buy the vehicle outright.\nAs you try to figure out how much car you can afford, you'll need to run some numbers. That's because your monthly payment is dependent on a few things, including:\n*   The sales price\n*   Your down payment or trade-in value\n*   The loan's interest rate\n*   The loan's repayment term\nFor example, let's say you're looking at a car with a $15,000 sales price that already includes all the add-ons, fees and taxes. If you're planning to put $2,000 down, your loan amount is $13,000. Now, let's say you qualify for a 3.49% interest rate and you have the choice between 48, 60 or 72 months for your repayment term. Here's how your monthly payment would differ depending the length of your loan term:\n*   **48 months**: $291\n*   **60 months**: $236\n*   **72 months**: $200\nWith this information, you'll have a good idea of whether you can afford that particular vehicle, and how the monthly payment would affect your budget. Keep in mind, though, that while a longer term will give you a lower monthly payment, you'll end up spending more on interest charges, which will make the vehicle more expensive overall.\nWhen it comes to actually getting a car loan, many dealerships can help you do this through dealer-arranged financing. But it's also a good idea to do your own research and get prequalified with at least a few lenders so you can compare rates, fees and other terms. END