Buying a car is a decision that you’ll only need to make a few times in your life. But, with the cost of cars being so high, it’s a decision that shouldn’t be made lightly.
Before you start hunting for suitable affordable cars, you’ll need to work out how much you can spend on your vehicle and where you’ll get the money from. You may need to save or take out credit, so budging for a car is essential.
But, what factors do you need to think about before you part with your cash?
In this guide, we’ll talk you through how to budget for a car and give you five things to think about before you head to the nearest car lot.
1. How Much Can You Afford to Spend?
Firstly, how much can you afford to spend on your car? You’ll need to calculate your current income and then deduct all of your outgoings such a mortgage or rent payments, household bills, and grocery shopping.
Once you’ve done that, you’ll be left with the amount that you’ll be able to spend each month on credit repayments, or that’ll be able to save.
2. What Type of Car Do You Need?
Decide early on what type of car you need. Do you have a family? Will you be commuting on highways, or driving the car around city streets mostly? Think about where you’ll be parking the car throughout the day and during the night.
All of these factors will determine what make and model you end up going for and how much you end up spending.
3. How Long Do You Expect Your Car to Last?
Are you buying a little runaround that you’ll use for a year before upgrading, or are you hoping your car will last for a decade or more? If you want your car to last for a long time, you may want to opt for a diesel engine or buy a new one.
If you’re hoping to sell your car after a period of time, how much do you hope to get for it? Newer cars will hold their value, while if you’re buying an old second-hand car, you may sell it to a company that gives cash for cars that are a bit older.
4. Where Will You Buy Your Car From?
Will you be buying from a dealer or a private seller? Dealers offer great security, while private sellers are often cheaper. Consider carefully whether you’ll be buying new or used as this will greatly influence where you buy from.
5. What Are the Running Costs of the Car?
Finally, when it comes to buying a car, the purchase price is not the only thing that you need to factor into your budget. You’ll need to think about running costs. This will include fuel, servicing, repairs, insurance, and any taxes.
Budgeting for a Car
Budgeting for a car is a straightforward process, but you do need to think carefully about what you’re buying before you pay a cent towards the vehicle.
For more helpful articles about cars, check out the automobile section.
