Many people avoid purchasing a vehicle because they’re aware of the major financial obligations that come with this asset. However, for some, owning a car is either a necessity or so beneficial to their lifestyle that it’s well worth the costs involved.
If you’ve found yourself in a position where owning a car will be the best (or only) route for you to take, you might be wondering how exactly you can afford it without breaking the bank. Here are a few tips to get you started.
Insurance can easily cost you as much as your monthly car repayments, which can blow your budget out of the water. However, shopping around for the best deals can really help you out.
Look for the cheapest car insurance you can find based on your driving and insurance history, the make and model of your car, your driving habits, etc. You might also consider reviewing your insurance policy once every year or so, to figure out if you might get a better deal elsewhere.
Often, buying a brand new car will mean that it comes with a service plan for a few years. A service plan will cover the routine maintenance for your vehicle for however many years your plan stipulates. This will save you massive amounts of money each year when it’s time for your car’s check-up.
If you’re buying second-hand, you can decide to purchase a service plan anyway – this may or may not work out to be more affordable than simply paying for the services as they come. Be sure to do your research before committing.
Getting your car serviced regularly is crucial for various reasons. If you haven’t got a service plan, this is definitely something to budget and save up for, since neglecting this task can have serious long-term consequences.
Keep in mind that services will always cost more at a certified dealership, but you don’t have to take your car there. So long as you have a trusted mechanic, they can do the job for a lot cheaper.
Not only is a second-hand vehicle far more affordable, there are plenty of benefits of buying a used vehicle that you might not have ever considered. However, this is a decision you’ll need to weigh up and research thoroughly since it could backfire and cost you even more in the long term.
Of course, ‘not driving’ doesn’t seem like a very good tip for someone who’s just purchased a car. You’ll naturally want to be getting good use out of your vehicle and you’ll probably be excited to drive it.
However, always remember that the more you drive, the more you’ll crank up what you spend on fuel. Not every trip warrants you to get behind the wheel, and you can still walk and cycle to certain destinations. Driving less is a habit that’s better for the environment and your physical health too.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.