The process of choosing and purchasing a new family car can be very intimidating. It was for us. With so many things to consider and advice coming your way from friends and relatives – the stakes are high! In this blog post, I will share the two times that we were facing that decision: the first one was several years ago when we were expecting our third baby, and the second time is now, as we are expecting our fifth baby! Circumstances and needs were different both times, so hopefully it will give you a range of things to consider if you ever find yourself in a similar situation.

What type of car

When you hear the term “family car,” you probably imagine a minivan unless you’re like me and internally you are not ready to be a “minivan driver.” You battle the thoughts of being “too young for it” 😬. In 2015, that’s exactly the mentality I had! My argument was that “minivans are for soccer moms, not young dads like me! I can’t do it!” Knowing that this was not a good enough excuse, I started to think about taking a more logical approach. My wife and I sat down and looked at what our needs were. Here is the list we came up with:

  • We needed at minimum 6-7 seats (knowing that we will have more kids and 5 seats would be a bit crampy)
  • Central Computer (this one was mine. I love technology and really wanted a vehicle functional with modern technology)
  • Leather seats (this one was important for my wife- easier to maintain)

That list made it very clear to me that there are plenty of other types of vehicles that can provide the options that are important to us. From here, I narrowed it down to three options:

  • Hyundai Santa Fe
  • Toyota Highlander
  • Ford Explorer (spoiler alert, we chose the Ford)

Fast forward to now: we are expecting our fifth baby, and I’m slowly giving up to my wife’s argument that a minivan might be the best vehicle for our family. My main argument was that I wanted to have a car that has AWD (All Wheel Drive), especially for the winter because of our family mountain trips, occasional snow storms and other adventurous activities. Currently (as of July 2019), there is only one minivan that has this option – The Toyota Sienna. Now remember, my priorities are different than yours, so come up with the must-have list for the vehicle that you want and make that a starting point.

What is the budget

This step HAS to be set in stone or you WILL spend more than you were planning. According to CNBC the average new car monthly payment accelerated to $530, with the average used car loan payment at $381. According to Experian Automotive data, both figures are at record highs. The average car loan is now just under $31,000. So, if you do not want to be part of that sad statistic, set your budget according to what you can afford (or lower), not to what you want.

For me, staying within our means translates into staying away from loans and other types of credit (except the house mortgage but that’s a different topic). Setting up the budget meant knowing first, how will we afford this? If you are planning on getting a loan, my suggestion would be to calculate your estimated monthly payment and try saving that amount every month to see how it will feel daily.

New or used

Calculating the price considers things like oldest year we would consider, a minimum set of features required, and title type (clear or salvage). I am a strong believer in the used market, so we knew that a salvage title car would give us the most for our money. 

CAUTION: I had several friends who work with cars that were engaged in helping me throughout the process, so I’d say it is one of those “Don’t try it at home” things. Unless you know about cars yourself or have somebody in your corner who does, proceed with caution.

Today my thinking is the same. When we’re ready to pull the trigger on purchasing one, I’m pretty sure it will be a salvage used one.

When are you ready

To pick a car is not as easy as an ice cream flavor at the store, yet we struggle with that too at times. This process requires deep research, a lot of conversations (peaceful ones) with your spouse and weighing the good and the bad. While “talking about it” is not a panacea, this topic requires it a lot. Don’t make it stressful or intimidating. You are working on purchasing a car! That should be an exciting time, so make sure you have date nights, evening talks or lunch time chats about it. Ideally, when you are ready and when you have the money for it.  When it comes to what fits your budget and future goals, those at @COUNTRYFinancial can be a resource for considerations on this topic.

Insurance, gas, etc.

Last but not least, don’t forget to calculate insurance, gas usage, distance from home to work, etc. Those might seem like small items, but they add up into the big picture! There are lots of car insurance options to choose from to fit your family’s needs and budget, and the professionals at COUNTRY Financial can help you figure out what’s right for you.

Purchasing a vehicle is an important milestone, so take it seriously and don’t rush (financial stress is the main reason I don’t block the conversation for dinner). Feel free to reach out on my contact page with questions or comments. 

To find out more about COUNTRY Financial and the car insurance options they offer, click here.

Auto insurance policies issued by COUNTRY Mutual Insurance Company®, COUNTRY Preferred Insurance Company® and COUNTRY Casualty Insurance Company®, Bloomington, IL.