Car ownership can be very expensive, but it does not need to be. As cars are pretty much essential items for everyday life, not having one may not be an option. So how can you make owning a car more affordable? Well, to start with, you could look at financing options. Purchasing a car outright is expensive, and the depreciation of the car’s value could mean that your car is losing value even before it has left the parking lot. To finance the purchase of a car, you could look at a loan, or you could look at a monthly purchase scheme whereby you would pay a set amount of money each month to effectively lease the car. At the end of the leasing term, you would most likely have two options. The first option being to make a lump payment and effectively purchase the car paying off the remaining balance, and the second option being to return the car back to the dealer and ceasing future payments.
Purchasing A Car
Leasing and loans can make things more affordable as you know how much will be coming out of your account each month; however, if you wish to own a car outright as soon as possible then leasing may not be the best option for you as, quite often, car ownership is not the end goal when leasing a car. Once you have decided how you will purchase a car, you next need to factor in how you will pay to maintain your car. If you do not maintain your car and have it regularly serviced, you will find that small underlying issues will become big problems later down the line. Breakdowns, maintenance, and servicing all cost money, and even urgent repairs can end up costing obscene amounts of money. If you need help paying for routine service or urgent repairs alike, a car repair loan could be the answer. When looking at a loan, it is wise to assess affordability and repayment costs. Car ownership is more affordable when you could pay monthly.
In addition to servicing and maintenance costs, you also need to think about insurance costs. Paying upfront for car insurance can be costly; however, some car insurance providers allow you to pay for your insurance on a monthly basis. Where you can, it can be wise to pay monthly for products as this simply allows you to see how much you will be spending each month.
Finally, you need to focus on keeping your car running efficiently. It is advisable that you learn the basics of car maintenance and repair to keep your car running costs as low as possible. For example, learning to change a tire, changing the oil, and even replacing the windscreen wipers may not sound a big deal, but if you can do these things yourself, you will soon see how quickly the savings add up.
Affordability needs to be assessed and weighed up before you make any financial commitments. Knowing how much you can spend on car ownership each month will ultimately allow you to establish what type of car you can afford to drive.