Budgeting For Your New Car

Posted by at 5 December 2020, at 01 : 29 AM

Budgeting For Your New Car

Making any decision about buying a new car requires a preliminary analysis to ensure that it is the best option for us. And when it comes to choosing a car, before buying one on credit, you should check your budget, so you will be clear about how much money you have and pay the monthly payments without any problem. We know how important it is to choose a car that meets your needs, whatever the cost, but it is better not to go out of your budget. Often the best way to know if you can meet all the payments you have to make when you buy a car on credit is to think about its total cost per month. Once you have found the car model that interests you, consider the following figures:

Divide the price of the car by the number of months you will pay for it (if you are going to apply for a loan or financing).
The cost of insurance per month.
Car protection – you may want to look at Cars Protection Plus.
The cost of your expected fuel consumption per month.
Maintenance cost per month (includes service and replacement tires)
The cost of repairs per month, you never know when it can break down.
The cost of the pension, in case of not having a parking space at home.
The cost of parking if your office does not have one.
The cost of traffic violations or parking tickets.

It is better than before applying for a loan to buy a car; make sure you have enough money so that you have enough left to cover those expenses without problems after paying your monthly payment. If, after doing the math, you can’t make all those payments, consider another cheaper model or brand until it fits your monthly budget.

Other costs

In addition to the costs derived from the purchase, it would be advisable to check on other items, such as the fuel consumption of the model in question, the road tax that you will have to bear, and the maintenance costs or the insurance policy. At this point, the differentiation between the vehicles we would like to buy and those we can take on is crucial.

There are also specific maintenance actions that you can do yourself to save money, from changing the windshield wipers or a blown headlight to replacing a fuse or cleaning the engine to prevent dust build-up and overheating. Suppose you also have a right hand or knowledge in mechanics. In that case, you can dare with specific interventions such as changing the oil or antifreeze liquid, the battery, or renewing the air filter. All of this is explained in the manuals for each model. Be sure to ask many questions before you decide to buy that car and always consider your budget. A car is a significant investment but you need to be sure that it is right for you and that the model suits your lifestyle and budget.

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