There are many people who rely on a car as their everyday mode of transportation. If you don’t fall into this category yet, it could be that you simply don’t have your own vehicle. Plus, if you do want one, how can you go about buying one?
Purchasing a car isn’t one of those spur-of-the-moment decisions that you can decide to do one day and follow through within the following 24 hours. It’s a huge investment, and there is a large chunk of money involved in obtaining one as well.
Remember that your existing monthly expenses must be prioritized first, and once those are paid in full, you can save from the funds that are leftover. While you are looking at these expenses, see if you could cut down on any of these – for example, if you are paying a lot for your internet, you may wish to take a lot at the cox internet plans, as well as plans from other providers, to see if there is a cheaper option out there that can still provide you with the same (if not better) connection speed. However, if you feel like this process will take too long, you can always consider looking for new job opportunities that pay you better, or even doing freelance or part-time work on the side, for a short period of time.
So, the question becomes – how can you save money for your very first car purchase? Learning how to budget and save is a part of it, but there is much more to consider as well.
Here are 7 tips that will prepare you for buying your car.
- Budget and save
Learning how to properly budget and save is the very first step in this process! Take a look at the paycheque you receive from work every single month and consider how much you can realistically set aside each month for your future car purchase.
Remember that your existing monthly expenses must be prioritized first, and once those are paid in full, you can save from the funds that are leftover. If you feel like this process will take too long, you can always consider looking for new job opportunities that pay you better, or even doing freelance or part-time work on the side, for a short period of time.
- Get a loan
While a loan shouldn’t be the primary means you use to buy your car, it could help you speed the process up a little bit, especially towards the end.
It could be that you are tired of taking public transportation, or that you simply cannot wait any longer before purchasing a vehicle. Regardless of the reason, you can opt to get a loan from the bank.
However, what if you don’t have the best credit history? This isn’t something that should deter you from buying a car, although you will have to be careful about ensuring that you can afford the brand you wish to purchase.
The good news is that there are online finance companies, such as Bonsai Finance, that provide you with no credit check payday loans on the same day that you apply for them.
Make a mental note that if you decide to pursue this as an option, you will still have to pay back this loan in a certain amount of time, and thus being financially equipped to do so is still an important consideration.
- Choosing to buy versus lease
There is a difference between buying and leasing a car, and so you must decide which of the two options you want to pursue. Plus, one will always end up being more expensive than the other, which in this case, is the purchase option. However, you will actually own your vehicle, when you choose to buy it.
When it comes to leasing, it may be a cheaper alternative for the time being, but you also have to return the car at the end of your lease, unless you decide to buy it at this point in time. In any case, monthly lease payments are always lower than if the car is yours, and it is up to you to decide which option works better for you.
- Electric versus gasoline
Have you considered whether you want to buy an electric or gasoline-based car? The cost of the car itself isn’t all that you have to consider, as there are also daily gas expenses to factor in. On the other hand, electric cars are much better for the environment and can be cheaper to own, although they are also potentially pricier when it comes to buying or leasing at the very beginning.
If you still can’t decide between the two options, you can always choose a hybrid car, which combines both of these factors into your automobile.
- Considering insurance
The cost of insurance is yet another factor that must be considered when you are budgeting and saving for your vehicle. After all, even if you are a safe driver, you never know what can happen on the road.
It’s better to be safe than sorry, but insurance is by no means a cheap investment. That being said, if you can’t afford insurance, it’s better not to drive altogether until you have the proper financial means for it.
- Finding your perfect car
It’s important to be realistic about the automobile brands you can afford, and it can take you a while until you find the perfect car to buy. If a Lamborghini or Porsche is outside of your budget range, there is no sense in even visiting a car dealership to look at those two options.
- The cost of maintaining your car
If you want your car to appear brand new even years after you have purchased it, you will have to maintain it. Once again, this can be costly, although incredibly necessary. Some of the maintenance services you will have to consider are things such as:
- Changing the oil
- Changing tires depending on the season
- Replacing worn-out parts
- Checking your breaks
- Filling up on windshield wiper fluid
- Keeping spare tires in the trunk
Money is a part of everything you do in life. It’s a result of money that you can afford your home, the goods you purchase, and it overall affects your quality of life. It shouldn’t be seen as a shock that you need to learn how to be more financially stable if you want to purchase a vehicle, especially considering that the cost of leasing or buying isn’t the end of your expenses.
You have to find the perfect car insurance and learn how to properly maintain it, especially since you will want to have it for several years of your life. There may even come a point where you choose to sell it, but if it is clearly evident that it hasn’t been properly taken care of, the chances of you receiving much money for it is unlikely.
This is one of those moments in life where taking your time and feeling one hundred percent certain over your initial purchase is incredibly beneficial.
