If you’re thinking about buying a new car, have you stopped to consider your finances? New car ownership is a huge financial responsibility and making a hasty decision could come back to haunt you. Here are a few aspects to consider before withdrawing funds from your local bank to purchase a new car.

Do You Have Enough for a Down Payment?

A robust down payment is a must when buying a vehicle. The more money you put down, the lower the monthly payments will be, and a big down payment can also help lower interest rates. These rates can be exorbitant, especially if you have a spotty credit history. Try bringing together a large down payment to offset some of these costs.

How Much Do You Have in Savings?

Even if you have enough for the down payments and monthly costs, will you be able to cover unexpected repairs? Even if your car is under warranty, it will be up to you to cover some costs. An emergency savings fund is key in this case, as it will prevent you from using money allotted for necessities, such as bills and groceries.

How Does Your Bank Account Look?

Along with the amount of savings you have, also take a moment to consider the health of other bank accounts. For instance, if your checking account runs low throughout the month, you might have trouble making car payments on a regular basis. Not only will this damage your credit score, but it can also result in you losing the vehicle you worked so hard to acquire. Track your bank account for about a month before your purchase to determine whether now is the right time.

More than just a bank, Magnolia Bank strives to help their customers make smart financial decisions. If you’re looking for financing to purchase a vehicle, they will help you find a loan with the terms and rates that suit your needs. They also want to make your banking experience as streamlined as possible. That’s why they offer minimal fees and convenience, including easy access to your accounts online. Take advantage of more than 100 years of service by calling (270) 358-3183. You can also learn more about your banking options in Hodgenville, KY, by visiting the website.