Sometimes, getting what you want requires more than just good fortune. Sometimes, it requires a plan and hard work.
A car is one of the big ticket items that your financial life is likely to be made up of. If you’re very lucky, you’ll be able to afford to buy it outright, or you won’t have to consider the loan repayments too much. However, for the most of us, a car is something we have to budget for.
So while you might be dreaming of a Bugatti or a Ferrari, unless you’re a millionaire, there’s probably a very slim chance that you can actually afford one.
For your everyday car that you really want, you need to get a bit more practical.
Here, you’ll find a way to help you get on the right track to getting the car that you want that will suit you and your budget.
Budgeting
The first port of call on the journey to the car of your (very practical, of course) dreams is the budget. This is the major deciding factor in whether you can afford the car that you want.
A deposit will help make affording a car much easier on a monthly basis. Usually, the higher the deposit that you put down, the cheaper your monthly loan repayments will be. So it pays to put down the biggest deposit that you can afford.
It may be tempting to extend the loan term in order to make the monthly repayment cheaper, but by the time you’ve paid the loan off – which could be up to 5 years – your car could have fallen apart! If your monthly budget will allow it makes sense to consider a shorter repayment period, maybe 3 or 4 years.
Finding The Right Car
You already know which car you want, and assuming that it is practical for your needs and for your budget, then you could just go into the first place you see and get it there and then. But if you want the best deal or price, then it pays to arrange your car finance first, that way you are sure of being able to buy the car you want before you start looking. It also makes sense to look for your new car in a variety of places; magazines, dealerships and online. Compare prices and deals, but take care to compare the same things like for like. Different car sellers will have different ways of advertising their deals.
Getting The Right Finance
The right car finance is a vital part of affording the car that you want. It’s important to find the one that will work for you. If you’re committed to getting the car that you want, then saving for a deposit is an important part of that. While a deposit is not necessary, it will bring down your repayments, making the car that you want more likely to be in your life.
Using a car finance broker, like motor finance 4u, you can apply for finance just the once and the broker will find you a suitable lender. The advantage of using a broker is that they can cater to a wide range of different circumstances, because they will work with a variety of lenders.
