According to Automotive News, the prevalence of long-term loans (between 73 and 84 months) has risen from 11.7% to 33.8% since 2009. The reason is that drivers can’t make the larger payments required for shorter-term loans. The cost of the vehicle the average person can afford has decreased. In Washington DC, where drivers can afford the most, the average borrower can’t afford a vehicle that costs more than $37,223. Drivers can afford the least in Miami, says Bankrate. There, the average is $13,576.

It’s hard to resist making a point that’s become a little irritating since the mortgage crisis a few years back. However, it’s always a valid point. And here it is. It’s not a good idea to live outside of our means. It’s risky to ourselves and can become risky on a national and even global scale when too many folks default on their loans. Let’s talk about how to avoid loan delinquency. Here are some tips.

Make a Budget

You should start by figuring out your budget before you even think about deciding on a vehicle. Most financial reps suggest saving at least 20% of your income. If you’re making loan payments, make sure about 20% of you monthly paycheck goes into the bank and stays there. If you’re buying a car with cash, save at least 20% a month plus a little more. The little bit more will be going towards the car. Be patient and save up enough for the vehicle.

Next comes the question of whether the loan payments you end up with are reasonable. It’s a good idea to get an idea of what they should be before visiting the dealership to negotiate. It’s rather complicated but If you want to give a try, just to make sure you’re not overpaying, the article here is a good one to read.

Once you know your budget, you might ask yourself “how the heck and I supposed to get the car I want with that budget?” Well, it might be recommendable that you refrain from doing so. But don’t get down on yourself. To be sure, you can find something else that gets you going. Some options…

Consider Used Vehicles

Used vehicles don’t always look, smell and feel used. Some of them are so pristine they might fool you into thinking they’re brand new. Particularly, certified pre-owned vehicles can be in strikingly good condition. And if they’re still to expensive, older options can be very well-kept, too. You’ll avoid a big dip in the value of the car that happens just after it’s purchased if you buy used.

Negotiate

Consider this scenario: You’ve found a vehicle you love to pieces but it’s just a tad outside of your budget. Tell your sales rep about this situation might actually help you bring the price down enough that you can afford it. Regardless, though, you should negotiate the price of your vehicle.

To get an idea of the best offer your dealer might accept, you can use the vehicle’s invoice price or its market price. Just keep in mind that you can probably go under the market price, while the invoice price is pretty close to the lowest bet. You can get invoice prices (dealer cost) right here at BuyingAdvice.com. Sites links Edmunds.com and KBB.com are good for finding market values.

Do your best to negotiate the purchase price down as much as you can before you sign anything. Remember, you do not have to accept an offer. You can walk out of the negotiations and take your business elsewhere. Walk away if you think the best the dealer can do isn’t good enough.

Don’t forget to request free quotes from your local dealers before making any commitments.