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Wishing for Wheels – 5 Tips to Help You Afford That New Car

Posted: March 14, 2019 at 10:44 am   /   by   /   comments (0)

What is your dream car? Whether you are lusting after a Ford Mustang, a Jeep, or a Tesla, most of us need a reliable vehicle to get from point A to point B. A car is most likely the second most expensive purchase that you will make in your lifetime, so it generally takes some time and effort to save up. Read through these tips and you will be well on your way to new wheels:

Borrow Wisely

Saving your pennies to pay cash for your next car is ideal, as you can avoid paying costly interest. If buying a car outright isn’t feasible for you right now – maybe your current vehicle just broke down and public transport to work isn’t an option – then you will need to access finance. Make sure you do some research – most car dealerships make more money from finance than they do from profit on cars, so don’t take their advice! It is worth going online to compare quick cash loans to car financing options and to make sure that you are getting the best deal.

Buy Second Hand

We have all heard the line about a car losing half its value the minute you drive it out of the showroom. This statement is correct and is a great reason to avoid buying a brand-new car. Instead, seek out vehicles that are only a few years old with minimal mileage. Some car leases provide the driver with a new car each year, which means that there are cars available that are almost brand new. Another great option to consider is purchasing a demonstrator model, that has been sitting in the showroom and taken for a few test drives. If you don’t have any mechanical knowledge or experience, you can get a qualified mechanic to inspect the car for you to check that it is in good shape.

Stick Within Your Budget

It is common for people to overextend themselves when purchasing a car. Psychologically, your vehicle a status symbol and many people feel that it impacts people’s perception of them. For your financial wellbeing, it is crucial to move beyond societal expectations and choose a car that is within your budget. A good guideline is never to purchase a vehicle that costs more than one-third of your annual income. So, if you earn $60,000 a year, you need to look at cars that cost $20,000 or less.

Research Thoroughly

Don’t be tempted to shop purely on color and attractive seat covers. Shop around to compare prices online, check the log books to see the service history, and take the car for a test drive. Consider the cost and availability of spare parts. Some vehicles are notoriously more expensive to service and maintain than others. Take along a checklist to ensure that you haven’t forgotten anything.

Negotiate

When you find the car that you think is right for you, make sure that you negotiate  on the price. Whether you are buying new or used, the car salesman always has some degree of wriggle room. It is better not to go in and try to strongarm them into a lower price but instead do your research, know your budget, and be prepared to walk away if the deal isn’t right.

Taking the time to understand your borrowing options, the cars that are available on the market at your price point, and the condition of the vehicle that your purchase will pay dividends and ensure that your new car is safe and reliable for years to come.

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