When you’re looking to buy a car, there are a number of financial things you have to consider. Buying a car is one of the biggest financial commitments you’re going to have in your life, so you have to make sure you’re ready. Plan a budget and study your savings to figure out if you can afford to buy and keep a car. To do this, you’ll need to take all these things into account.
The Actual Car Price
Obviously, the main financial issue is going to be the price of the car you’re looking at. This is definitely going to be the most costly part of buying a car. Lots of dealerships will now let you pay for your car in monthly installments after you put a small deposit down first. This can be easier for you if you prefer to pay for things this way. Alternatively, you can look at various car loans to help you get the funds to buy your car. A loan will allow you to pay for your car in full, so it’s officially 100% yours when you buy it. Instead of owing money to a dealer, you’ll pay your lender, and it’s likely they’ll have a lower monthly fee.
The Cost Of Insurance
For you to legally drive your car around, you have to be insured. Car insurance costs will differ depending on many factors. The age of the driver, type of car, years of driving experience will all be taken into consideration. If someone is a reckless driver with a flashy sportscar, their car insurance will be sky high. There are some ways you can keep your insurance costs down to an affordable level. If you drive safely and keep your car in a garage – as opposed to on the street – you’ll lower the cost of your car insurance.
The Running Costs
It’s also important to the cost of running your car into account. You need to have enough money to be able to buy gas for your car whenever needed. If you can’t afford to fill your car up with gas, then you’re not going to be able to drive it. Try and calculate how much you’re likely to spend on gas each month before you buy a car. Cars with smaller fuel tanks will cost less to fill up, but may require more frequent filling. If possible, try and find a very fuel efficient car, this will help you cut down on fuel costs throughout the year.
You must consider these three things before you commit to buying a car. If you’ve found a car and figured out you can afford the price, insurance and keep it running, then good on you! But, if you don’t have the money to cover the cost of all three things, you shouldn’t buy it. Only buy a car if you can actually afford to buy it. If not, then start saving or find ways to earn some extra cash until eventually you can afford one!