5 Tips on How to Own a Car On a Tight Budget

by | May 26, 2018 | Health Featured

The car is often one of the biggest expenses in a basic household. Despite an average monthly salary, however, getting a car is not a big deal. With the right planning, the budget does not matter. Budgeting is an art that can change anyone’s life. Invest time in planning your monthly budget. It really helps you get more from every month!

Here are 5 Tips to own a car with a tight budget:

1. Before you buy:

The first car is always memorable. Take time to think about what you would like to buy. Think about the features that you would want and the brand. Compare prices when you have narrowed down your search. Comparing is the best way to get a good deal. Understanding the car market and the best sellers would give you an idea of what to expect. Once you have decided on a car, talk to your friends who own them. They might let you know the pros and cons that you may not find elsewhere.

2. Financing the car:

Buying your car in cash is probably the best way. If you are spending cash to buy, you might get a cheaper car insurance and lose lesser money in interest rates. Consider capital loans to finance your car buy. Montana Capital Car Title Loans offers quick finance for car buyers. If you do not have a good credit history, getting a car loan might be a herculean task. Anyway, spending cash on your car buy is always a good idea.

3. After you buy:

When people buy cars they often forget about what happens after the sale. Every car is not the same even when it is new. A car with premium fuel or synthetic oil would cost you more. Always check for the service offers and after sales care when you buy a car. Spend time to find out the reliability of the car. Some cars are cheaper but they may not last long. Sometimes, you might spend more on repairs than the price of your car!

4. Understand the depreciation:

Once the new car moves out of the showroom, it loses nearly 20% of its price value. The first five years of any car would see a sharp decrease in the value. High-end cars lose their value quicker than budget cars. When you are on a tight budget, consider a car that has lost 50% of its original value. For example, buying a 2008 model now is a good idea. If you are considering a high-end model, buy a new one.

5. Consider resale:

It may seem odd to considering resale before you buy. There may be situational changes in your life that might make you sell your car. You might get an overseas work opportunity. You might expect a child and want a bigger car. It is a good idea to be prepared. If you have to sell your car, you should be able to without losing much. A basic car with no extra features costs lesser than one with many. In the resale market, these features do not seem important.

So, to wrap things up: It is possible to get a good deal on your car when you have a budget. Planning in advance is one of the best ways to get more from your car. Think of the possible service and aftercare when you get a new car. Thinking ahead about resale is also a good idea. Buying a car is one of the biggest investments that you would make. Consider how much it would cost you to have a car in the longer run. Working out the budget and running cost of the car will give you a good idea of what to expect.

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