"We see far too many young consumers with unrealistic aspirations. They want the shiniest, newest, fanciest cars on the lot, when in reality this would wreak havoc on their finances...
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Sacramento, CA (PRWEB) December 26, 2013
Golden West Auto Finance, an automotive financial services provider serving the state of California, is proud to announce the publication of a new featured blog post entitled: "How Much Should You Spend on Your First Car?" This article, co-authored by two of the team's founding members, is meant to educate young adults and first-time car-buyers as to how they should budget for their vehicles.
"We see far too many young consumers with unrealistic aspirations," said T. Brown, one of the article's co-authors. "They want the shiniest, newest, fanciest cars on the lot, when in reality this would wreak havoc on their finances, both now and on into the future."
The article, which interested parties can read in its entirety here, provides concrete prescriptions for buyers, whether they into pay for their vehicles in cash or through a loan. If a loan is involved, the article advocates spending no more than 15% of one's net monthly income on a car payment, while opting for the shortest repayment term possible. If paying cash, the authors suggest spending just 10%-30% of one's gross annual income on a car.
"A car is a depreciating asset," said Mr. Brown. "And therefore, it behooves the buyer to spend the least amount possible, while still buying a car that is practical and reliable for both highway driving and everyday commuting."
The article proposes a strategy in which a buyer "tests" the car-buying waters by making "pretend" payments to their own savings account, thereby establishing a payment amount that is comfortable while accruing enough funds for a down payment.
About the Company: Golden West Auto Finance connects borrowers and lenders in real-time, all across the state of California.