Are you Financially Ready to Buy Your First Car?

attribute to akeg flikrSo you’ve got your license and don’t want to borrow your parent’s car anymore, or maybe they won’t let you borrow it. You are going to want your own wheels, so what does that entail? Can you afford to buy it? Thinking about buying a new car entails a lot more than just handing over the money, or walking into a bank and getting a car loan, so you will want to be prepared for what you are getting into. Here are some things to think about before you decide whether you are financially ready for buying a car.

What is Your Income?

The first thing you need to think about is how much money do you have? If you don’t have any income then the first thing you need to do is get a job, or find some way of earning some money. You will not be able to just walk into a bank, or loan manager and ask for a loan without something behind you. If you do have an income you need to work out how much of it you need to use for other things, and how much you actually can afford to pay off on a car loan. Check out Dreamloans for info on car loans.

Is it Fuel Economical?

If you have a car in mind that you want to buy then you need to look at how economical it is to buy and whether it is going to cost you a lot of money in the long run. Smaller cars will be more fuel economical, which means you will use less fuel to run it. The older the car is the more things it will have wrong with it, which means that it might cost more to run than if you bought a newer car.

Benefits of Buying A Used Car

We might all have an ideal of buying a fantastic new car for our first car, but in reality it might not be the best way to go. On the other hand, buying a used car will be cheaper but you may be buying somebody elses problem. If you look around, and do your homework, you will be able to buy a great car second hand which will cost you less, and then you will be able to have some money set aside for services and other things that it will need over time.

How Much Is It Really Going to Cost?

Before you sign on the dotted line and drive away in your new car you will need to work out how much it is really going to cost you. Getting a mechanic to have a look over it will help you to know exactly what you are getting into, if you are buying a second hand car. If you decide to buy a new car, it will need manufacturer services which may cost a bit more than normal ones through a regular mechanic.

Dealer Discounts

Often you will be able to get dealer discounts for new vehicles and sometimes for used ones, depending on the dealer. Be sure to ask them ahead of time so you have a good idea about what it is going to cost.

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Student-Finance.com.au is not a credit provider and does not act as a intermediary between any credit providers. This website does not provide Financial Product Advice or deal in the sale of any financial product. If you require this service it is recommended to seek the help of a professional. You should consider your own specific circumstances before making any Financial decision.