Are you planning to buy a car? It is definitely exciting to buy a car for the first time. However, it is not that simple of a decision. There are many factors and considerations to think through before you decide once and for all. This is especially applicable for young people who are just starting to work and earn a salary and think they can already buy a car.
Well, it is definitely a good feeling to have your own vehicle but you should be practical and honest. Here are some things that you should think about before you come up with this major decision.
- Do you have money for down payment – first of all, you need to secure the money for down payment. Usually you would pay 20 percent as down payment. Be sure that this amount will not zero out your savings. It should be a separate fund from your emergency fund because you do not know when you will be in need or when an emergency happens. So the best thing to do is allot money to go to your savings for car which is different from your life savings.
- How do you wish to pay for the car – are you applying for a car loan? It is advisable that you use a car loan calculator to have an idea how much you will be paying monthly to pay off your loan. You will then know if it fits your budget or not.
- Do you have a stable job or source of income –to be able to secure a loan, you need to have a stable job and that is so you can pay for it as well. It is best to ensure your position in the company or in your workplace. It is best if you’ve been working in the company for at least two years or once you become a regularized employee.
- What type of car do you wish to buy –you need to decide the type of car that you will buy. You should consider your budget and lifestyle when choosing. Are you going to buy a brand new unit or you’ll go for pre-owned? All these you need to think of carefully.
- Do you know how to drive –well, you should also know how to drive. If not, then apply for a driving lesson before you buy a car. It’s just practical to drive by yourself instead of hiring a driver.
- Are you ready for the expenses of maintaining a car –lastly, you should take into consideration the expenses of car maintenance. Are you ready to pay for all those on a regular basis?
These are the factors that you should keep in mind to help you decide if you’re 100% ready to buy a car. Do not buy one just for the sake of boasting to your friends. You should ensure that you are ready for all the expenses of buying as well as for the responsibilities of being a car owner. That way you will not feel the burden of paying.