5 Awesome Ways To Work Out The Affordability Of Your Car

5 Awesome Ways To Work Out The Affordability Of Your Car
Being able to purchase your own vehicle is a big achievement. The great thing about having your own car is that it makes things so much easier, whether you have to drive to school, work, or simply running errands.
Having a car is important and can be a safer option especially if you travel in the early mornings or late evenings when public transport isn’t available. 

But as much as we all would love to drive around in our old vehicle, they can be quite expensive. Car affordability in South Africa isn’t high and that's why many people need financial assistance when purchasing a vehicle whether it is pre-owned or brand new. Yes, pre-owned vehicles are affordable but if you’re purchasing one that has been well maintained, chances are it will still cost you a large amount of money in the long run. 

Before buying a car even if you’re planning on applying for vehicle finance, it's always good to ask yourself, what can I afford? Here are a couple of valuable tips on how you can work out your affordability. 

- Save up for a hefty deposit 

First and foremost, if you would like to purchase a vehicle without straining your finances then the best thing you could do for yourself is to save money for a deposit. Try and save 10 to 20 percent of the vehicle amount, that way you have a kickstart on your loan amount. Even if it seems like you have made a small upfront payment, the money you put in still counts towards your vehicle. 

Making an upfront payment won’t only help you increase your chances of getting financed but it will also lower your instalment should you get financing. And the deposit will allow you to settle the loan amount sooner. 

- Look at what’s affordable for you

Take a look at the list of your monthly income and expenses, having it written down will show you how much money you can afford for your new car. Your monthly expenses would include; the rent or bond on your home, medical aid, current debt, insurance, groceries, rates, and anything else you pay on a monthly basis. 

If you have too many expenses that you need to cut back, rather cut back on your wants instead for your needs. For starters, you could start by settling the debt on your credit cards, retail accounts, and unsubscribe from entertainment platforms, for example, Spotify and Netflix. 

You can also use an car affordability calculator, this can help you check your affordability and how much money you have left and what your monthly repayment could be. With the money, you have left you to need to think about the cost of owning a car. 

- Financing options available for you 

Many South Africans can’t afford to purchase a vehicle once off and that's why there are so many financial options available for you. There's one option some people forget that they have, which is purchasing a car at auction. The great thing about going to an auction is that you have a wide range of cars to choose from, and you could easily find your dream car at an affordable price. 

Lenders also offer you financing to buy from a dealership or a private seller. So if you know someone who is selling a car that you like, you can finance it, you don’t have to use a dealership. Graduates also have the opportunity to receive car financing even if they don’t have a credit history. Another option would be a balloon payment, a balloon payment is a repayment made at the end of the loan term. 

- Think of the additional costs

When thinking of purchasing a car people tend to forget about the additional cost of owning a vehicle, besides the monthly repayment. One of the most important additional costs would be car insurance. With so many unexpected accidents happening on a daily basis on our roads, having car insurance is a wise thing to do. Many people argue that car insurance is expensive and that they are good drives. 

But you should always keep two things in mind, firstly, you aren’t the only one on the road. Sadly there are a number of bad drivers out there that could cause an accident. Secondly, we all know that unforeseen circumstances happen when you least expect it and you might not have the money to pay for damages from an accident. Why would you want to complicate your life instead of preparing for the inevitable? 

You also need to think about the cost of fuel which can be quite expensive. When choosing a car, try and purchase a car that is low on fuel as that would be a cost saver. Another thing to keep in mind when purchasing a car is accessibility. You need a car that can be repaired easily and at a low cost. Purchasing a car with car parts that aren’t accessible will become a nightmare and it will charge you more.

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