How Much Should You Spend?

It's easy to overspend your budget on a new car or truck. Here's how to avoid getting in over your head.

It's always a good idea to start the car-buying process with a preliminary budget planning session to help you determine how much car or truck your money can buy—and how much money you feel comfortable about spending—on what is typically the largest consumer purchase after a house.

Experts told MSN Autos it's all too easy to buy or lease a car you really can't afford—even if you're normally a levelheaded consumer. By overextending yourself for the sake of a new car you face more than just giving up vacations and nights out. You could be putting your financial security at risk.

Control Your Emotions
"Don't overbuy," advises Bob Litwin, Director of Creditor Community Relations for the Houston branch of the Consumer Credit Counseling Service (CCCS), part of the nonprofit National Foundation for Consumer Credit, headquartered in Silver Spring, Maryland. "All too often, emotions overrule logic and people get into trouble. If you can't afford it, don't buy the car."

One way many consumers get into trouble is by not understanding the difference between qualifying for a loan and being able to afford one.

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