Can I Really Afford a Car?

on January 12 | in Finance | by | with No Comments

Buying a car can be a lot of fun, but it can also be a time of stress. There are many mistakes that can be made during the process. If you don’t buy sensibly you could end up with a vehicle that could be more than what you can really afford. You may end up not being able to afford to keep the vehicle on the road or even have it repossessed. However, if you’re smart all those problems can be avoided. The first thing to do is work out if you can really afford it or not.

cars 300x199 Can I Really Afford a Car?

Take a Long Hard Look at Your Budget

It may sound obvious to check your budget first but sadly many people neglect this step. Rather than sitting down with a pen, paper and a calculator they decide to estimate what they can afford. Estimations aren’t good enough, you do need to look at the accurate figures.  The budget for your car should be the absolute highest amount you can afford including any extras such as insurance.  Never use figures of potential earnings, make sure you only take into account the money that is coming in at the moment.

It’s a good idea to spend no more than 20% of your monthly net income on the monthly repayments. The actual figure will depend on your other outgoings, and you must remember the additional costs such as fuel, oil, servicing and possible repairs in the future.

What Car Should You Buy?

You have a few options to consider when you buy a vehicle:

  • You could buy a new car or choose one that has been owned by someone else
  • You could buy a brand new or used vehicle outright
  • You could lease a new or used vehicle

Buying a new car means you don’t have to worry about the previous owner, past paperwork and history. However, you will also lose a lot of money as the value of cars depreciates very quickly. Used cars can be a great alternative, and since you can find finance for used vehicles these days it really is worth considering.

The make and model depends on your personal preference. If you’re buying a second hand vehicle you could find yourself driving an Audi or even a Ferrari! Just do your research first and buy the type of car you really need and not the one you’ve always wanted since childhood if it’s not suitable for getting you and your family around.

Where Should You Buy Your New Car From?

Whether buying a brand new car or a used car you will need to find a great seller. You can find plenty of private sellers if you visit However, you can also find dealerships too, so if you prefer not to buy from a private seller you still have plenty of cars to choose from. Use the website to filter down your search based on your budget, the type of car you want and the location. You can also apply for car finance, ideal if you are not planning on paying for the car in one go.



Image attributed to: digitalart

Pin It

Leave a Reply

« »

Scroll to top