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I have an older car that I have owned for about 9 years and I have committed to driving this car until the wheels fall off. I'm blessed that it still runs smoothly but last year I thought I was going to have to get another car.

Due to a reoccurring issue that no one including dealership could figure out what was going on. 

So my husband and I had this grand idea that we were going to take the car another dealership but the day before we were going to drop it off, the car decided that it was done playing with us broke down in the middle of the street.

Thankfully we were able to move the car somewhere safe and have it towed to the dealership that was able to repair it.

Before I actually knew the cost to get it repaired I was preparing myself for the possibility that I may have to get another car if the repair cost were more than the car is worth.

I started looking at cars and how much they cost and after I  picked my jaw up off the floor, I realize that all of these new technological upgrades were causing the prices of cars to skyrocket.

Even though I didn't have to buy a new car here are five things you should consider when shopping for a new (new to you) car.

How much can you afford? 

You thought I was going to ask about what type of car you want first, didn't you?

Nope.

The first thing you actually should look at when you are in the market to buy a new car is how many cars can you afford?

 I know it would be great if you were able to pay for a car in cash but I am aware that everyone is not able to do that.

So if you have to take on car payments you want to be in the position where you are able to pay off your car quickly and also not be in the position where your new car expenses are going to have you strapped for cash.

The old school 20/4/10 rule says that you should put 20% down, for a 4-year loan and it should not be more than 10% of percent of your gross income each year to the loan. 

That includes car insurance.

This rule may be hard to follow these days due to the rise in car prices.

You should look at keeping the cost of your car no more than 10% of your monthly take-home pay.

According to the Bureau of Labor Statistics, the median wage for workers in the United States in the first quarter of 2019 was $47,060. 

So assuming that your monthly take-home pay would be around $2,949, your car payment should be no more than $294.90 and your total car expenses, including gas, insurance, and maintenance should be no more than 15% of your total take-home pay or $442.35.

Related: How To Create A Budget

How much will your insurance cost?

There are many factors that go into the cost of your insurance, including the year, make and model of the car you buy.

Any time you are looking to purchase a new car, with payments or in cash, you should contact your insurance company with the VIN number of the car, if possible, to find out how much your insurance policy cost will change. 

Each car has a symbol that insurers may use to determine the premium, so a 2019 Honda Accord may not have the same premium as a 2019 Audi A4.

How much does it cost to maintain the car?

Maintenance. 

I think that people forget about this one the most. 

They are so excited about getting a new car that they forget to research the cost of maintenance and if it had any problems, for example, transmission issues or a failed starter.  

Kelly Blue Book, Consumer Reports, Edmunds and Repair Pal are a great place to start if you are trying to get an estimate of the maintenance costs and common repair problems.

What is Your Credit Score?

If you are financing your car purchase, you should know your score before you go make your purchase.

It’s better if you start tracking your score a few months before, things happen and even if you have to make a quick decision you can easily check your credit score. 

Knowing your score will help you save money on financing and you don’t have to settle for the dealership’s financing.  

Who would you use for financing and for hows long?

Speaking of financing, you always have options besides the dealer. 

Even if you don’t have good credit. If you bank with a credit union I am always a fan of going there first. 

You can also get a loan from your bank, online lenders and the dealership. If you have good credit the dealer may offer you a lower rate to finance through them.

When it comes to your payment terms, I am a fan of paying off your car as soon as possible.

I have seen terms as long as 84 months. Please avoid this, the longer your payment terms the more you pay in interest.

The longer the loan, the higher the interest rate.

Which means there is a higher chance of owing more on your car than it is actually worth.

If you are in the market to purchase a car, I hope these 5 tips were helpful. What other things do you take into consideration when purchasing a car?