Buying a Car Without Breaking the Bank, The family car is a vital part of your lifestyle. You need a vehicle to get to work, to get the kids to school, to do chores and shopping runs, and for anything else that involves leaving the house and travelling somewhere new.
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Buying a Car Without Breaking the Bank
Some families have more than one car and, as your family grows and its needs change, you might find that your old faithful vehicle simply isn’t up to the task anymore. Sometimes this is because of a dramatic breakdown, but it could just be that the car is getting older, or you need to upgrade it to keep up with changes in your lifestyle. However, your car happens to be one of the most expensive things you will likely own. This means that buying a car isn’t something you can take lightly or something that your bank account will enjoy. Here are some ways to mitigate the expense and keep your finances stable.
Count the Cost
The first thing you should do before making any large purchases is to count the expected cost and compare it with your current financial situation. This means that you aren’t likely to overspend on something and end up in debt that you can’t easily pay off.
Work out what your family needs and measure it up with your wants, then make a budget accordingly. Sometimes you have to sacrifice some of your wants to cover your needs and to keep within a reasonable budget.
As well as counting the cost of the initial purchase, you should also consider the costs associated with running the vehicle. Fuel costs, maintenance, and repair costs, tax and insurance, it all adds up. If you already own a car, then you have some idea of these expenses, but some vehicles are more expensive than others.
Financing Your Purchase
Most people take out a car loan when buying a new vehicle, but there are upsides to paying in cash as well. If you save up for your car, then you don’t have to worry about going into debt and paying off any loans. Some loans require a deposit anyway, so you likely have to save up.
When debating whether to take out a loan, look at the interest rate and make sure it’s something you can afford. Ideally, you should budget for the loan repayments and get through them as quickly as possible, so that you pay less in interest overall. Paying quickly will also boost your credit score, helping with future loans.
Saving Money When Purchasing
While it’s nice to get a shiny new car fresh from the factory floor, you should consider a used car. Hyundai car dealers, for example, offer some great deals on some perfectly good vehicles that might even be under warranty. You can get a better car for less money if you’re willing to get a model that’s a few years old.
If you have an existing car, you can save even more money by trading it in.