You can’t just walk in and ask for a loan. Everybody knows that. When you’re buying a large purchase like a car though, you need finance.
To get that finance, you need to make sure you can pay it back. How do you do this though?
How can you make sure you get the safest deal possible on your car financing? We’ve put together a little guide.
A Secure Job & Wages
It’s never smart to buy anything on finance if you don’t have the pay to back it up. Working part-time or freelance in an insecure job isn’t going to work. Some finance companies might give you the money, but you could end up with nothing if you can’t pay the bills. If you’re not in a stable job making regular money, don’t try and get finance. Try and get yourself a job that you are secure in, and make enough money to pay a monthly finance bill.
Check The Finance Stipulations
Try to ignore the idea of ‘low’ being good too. These finance companies are businesses and have to make money. They are not offering low interest out of the goodness of their hearts. Low interest means you may pay less per month. You’ll be paying for longer. While the interest rate may not add much to the amount you owe monthly, they will keep you paying over a longer period.
Check Your Expenditures
If your pay is solid, but you don’t have much left over at the end of the month, you need to look at your outgoings. It could be you are spending too much on things you don’t need. It could be that you just live somewhere very expensive. If you want to have enough money to pay the finance bills, you’ll have to cut from somewhere.
If you want the car, you may have to consider something drastic. Cutting a few subscriptions are just the start of it. If you’re renting and your living costs are too high, you should maybe think about moving. It’ll be beneficial in the long-run. You’ll be able to afford the car as well as not paying far too much in rent.
Pick An Affordable Car
If it hasn’t occurred to you by now, you might be aiming just a little too high with your purchase. A cheaper car isn’t the end of the world. So long as it suits your needs who cares it if costs a little less? It might lose some features and a little flash. That’s a small price to pay for actually being able to afford the car.
Never be afraid of the word downsizing when it comes to buying a car. So long as it is reliable and gets you from point A to point B, do you need to spend that much on your vehicle?