The idea of buying a brand-new car can be a real dream for some people. Having something that no one else has owned that is so new can be so appealing and many people cannot afford to contemplate this and so always have to go for a second-hand car. A brand-new car will lose value as soon as you drive it away from the dealers as the fact that it is new means that more is charged for it. So, if you sold it the day after it would be worth at least a few thousand less. However, this is not enough to put many people off their dream if a new car but the cost is.
The cost of the car
A new car will be a lot more expensive than a second hand one. However, that cost will vary between models. There are some new cars that are cheaper than second hand ones; it all depends on the specific model that you want to buy. If you just want a new car and are not that fussy which type then this could mean that you could just buy a small one and achieve your dream. For some people, even a cheap car is out of their budget or they want a specific model which is more expensive.
Even so, it is worth comparing prices of cars and making sure you get good value for money. Some dealers may give you a better deal than others and you will need to think about whether you want extras on the car and how much you might be prepared to pay for those.
Finding a way to afford it
If you have savings then you could put these towards the cost of the car. It might even be sensible to try to add to them until you have enough to buy it outright. This could take a long time, but it will be a much cheaper option than borrowing the money. If you are really motivated to buy the car, then it should not feel too much of a burden to put some money away each month so that you can save up. Put it in a savings account and it will earn interest which will add to your pot. It is best to set up a direct debit so that money is transferred into your savings account regularly, just after you get paid. Then you will not be so tempted to spend it. This idea may work for you well, but some people may not have had success at saving and may feel it will not work. If this is the case then you need to make sure that you are really determined about doing it. Try to motivate yourself by pinning up pictures of your dream car and concentrating on your goal of owning one. This could help you to leave the savings untouched and make sure that you budget properly so that you can save what you need to.
An alternative option is to get a loan. There are different options for borrowing such as a car loan form a dealer and a bank loan. It is worth comparing both to see how much each will cost you and whether they have terms that will suit you. Consider the price and whether you are prepared to pay more for one than the other. Look carefully at the repayment amounts and think about whether you will be able to afford them. It is so important to check this out because if you do not make the repayments you could end up with your vehicle being repossessed and that would be a very nasty end to your dream. Also, this would show on your credit record so you would have difficulty in borrowing money to buy another one and that could mean that you have trouble getting to work which may even end in you losing your job. So, if you take on a loan that is too expensive you could find yourself in all sorts of trouble.
It is not an easy decision to make, but if you have all the figures in front of you it will help. Make sure you are clear on what your options are and how much each will cost you. Also know the cost of the car so that you can calculate how much you will have to put by each month, either in a savings account or repaying a loan. Whether you save or borrow is very much a personal decision, but it needs to be considered really carefully. It is wise to discuss it with others before deciding on what you will do and they might see things differently and give you other things to think about with regards to whether your preference is the most sensible.Read More