 TITLE: Buying a New Car? Here’s What You Need to Know CONTENT: Know Your Budget\n----------------\nGetting a new car can be an exciting experience, but you may regret it if the monthly payment makes it difficult to work toward other financial goals or even get by.\nTake a look at your budget to see how much you can afford to pay each month. Make sure to consider other financial obligations and goals, as well as the discretionary spending that makes up your lifestyle.\nAlso, look at your savings to see if you can afford a down payment and, if so, how much. A down payment can reduce how much you need to borrow and, therefore, your monthly payment. But if you drain your savings to buy a car, it could leave you financially vulnerable if an emergency occurs and you're broke.\nKeep in mind that trading in your current car can help increase your down payment amount—although selling the car to a private buyer could net you a higher sales price than selling it to a dealership.\nOnce you have an idea of how much you can spend each month on a car loan, you'll have a better idea of what sales price you can afford. END