What Kind Of Car Can You Afford?

Whether you are about to buy your first car, or your current one has finally given up and limped into the great car park in the sky, the issue of money is a main factor in what you will end up driving home next. The first question is how you will pay for the car itself. If you have savings, think about how much of these you are prepared to put towards a new car. You may find that you cannot meet all of the cost in this way in which case you need to look at other methods of finding the whole amount. A car loan is one option, but you will need to look at your finances to see whether you can realistically afford the monthly repayments. The same thing applies if you decide to get a personal loan to buy a car. You should never over commit yourself. When you are shopping around to see what fits in with your budget, it s easy to forget that there are other costs involved with buying and maintaining a car. Car insurance will be a monthly cost that needs to be remembered, and car tax also needs to be taken into account, although you can buy savings stamps to spread the cost of the latter. Then there s the potential cost of repairs should anything go wrong. If the car you want is a fancy, Japanese import then it s highly probable that spare parts are likely going to cost more than spare parts for more common vehicles. One thing that can really add up is the cost of petrol or diesel, so if you are on a tight budget it s worth considering how efficient each potential car on your shopping list is on fuel. Over time you could make considerable savings just by opting for a smaller model, rather than a gas guzzler . You can also save money by looking at the more basic cars on the market, rather than opting for ones with lots of added extras that you may not really need. This applies regardless of whether you want to buy a brand new car or a used one. While it s good not to spend more than you can reasonably afford, it s also wise to be wary of bargains. Sometimes a car will have a bargain price for a reason, and while owners may have legitimate reasons for selling at a low price in order to get rid of the car quickly, they may also be less than honest. If you are in any doubt, don t buy at least not until you ve got someone you trust to look over the car and give you their opinion. In short, it s a good idea not to rush into any car purchase without considering all your options first. Whatever kind of car you end up with, you want to be certain that you can afford it both now and in the months to come.



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