Buying a car is a big investment, and consumers who want to get the best deal should be sure to do some financial planning before they make a purchase. Here are some important financial tips for shoppers to keep in mind as they approach the car buying process to ensure they’re making a smart money move.

1. Set a Budget and Stick to It

Shoppers should set a budget for their car purchase, then stick to it no matter what. It can be tempting to adjust the amount of a down payment once a car dealer starts convincing a customer. However, if a consumer knows how much money he has to put down and does not budge above that number, he can ensure that he’s not going to have to shell out more money than he actually wants to.

2. Ask About Taxes and Fees

When purchasing a car from a dealer, consumers should ask about associated taxes and fees. Dealers will often charge a dealership fee, and there will be sales tax and title fees tacked onto a purchase. People should plan for the total of what they’ll spend up front by getting consise information about taxes and fees from the get go.

3. Plan for Costs and Expenses in the Future

Experts suggest when setting a budget for a car, consumers should make sure that they don’t spend more than 25% of their monthly income on all car expenses (including all cars in a household). When budgeting for how much monthly payment they can afford, people should count the car loan payment, but also any other costs associated with the car; such as insurance, gas, maintenance, and more.

4. Shop Around

Shoppers should use the Internet as a tool for finding the best price on the car they want. Many auto websites will show available cars throughout a geographic area, so people can ensure they see more of what’s available around them, not just at the closest dealership. Shoppers who spend time looking for the best car deals can get the car they want at the best possible price.

5. Think in the Long Term

People who buy a car often pay for that car over time, in the form of loan payments. Shoppers who get the best deal look at the total purchase price, not the monthly payment amount, to see what they’ll really be spending. A low monthly payment amount can add up to spending way more on your car than a higher monthly payment amount, depending on interest rates, length of payment window, and more.

Ultimately, buying a car can enhance a person’s life and enable him or her to make more money. However, before a consumer simply buys a car, it pays to do some planning and research. By keeping some tried and true financial tips in mind while they shop, people can ensure that a new car only improves their life and doesn’t add any unnecessary stress to their bank account.

Sources: Bankrate, Autotrader, Money Under 30