Can I Afford a New Car?

It depends. When getting a loan for a car you should be ready for a check that banks run on their customers who are willing to undergo the procedure before they can claim their vehicle as their own. Get ready for some nailbiting experience before you start off your journey.

How It Works

It may take quite a while to gather all the documents required by the bank: pay stubs, bank statements and anything that your bank may want you to submit before you are granted anything. Take the following into consideration.

  • How much you earn
  • What is your current credit score
  • What is the cost of the car
  • Other financial obligations

Check out the Quotes

With the above in mind you should seek to clarify with your bank the quote you could receive and then you can set out to scour the market for a make that would meet or exceed your expectations. Either way, be advised to take into the account the number of monthly payments to make, so that you do not go overboard to the detriment of your budget. Any imbalance would end in the repossession of the vehicle which is what you should aim to avoid by any chance for obvious reasons.

Seek the Bargains

Keep in mind that at the beginning of each year customers are given a rare opportunity to engage in vetting for the most value-for-money car deals on the models released a year earlier, with some automotive producers slashing their prices significantly. You would be in the luck to discover a brand new model with the accompanying reduction in the obligatory car insurance, but sometimes miracles are possible.

If necessary, Choose Another Option

If you are concerned with the rising costs of gas, you may want to opt for something a bit cheaper and smaller or an older version that would run on less gas. Depending on your preferences, you may need to take a hike to the nearest auto resale and haggle a little with the seller to have him change his mind about the price.

Your final decision will be dependent on many factors, including the possibility of having to move house one day, in the view of the job shortage in your area. This is an investment you are making to gain an upper hand and not to lose in the long run. Either way, a car is a unique item that could be costly to maintain and put pressure on your budget, so decide if it is worthwhile in the long run.

Recommended Reading