Your first family car has served you well for the past five or so years. Perhaps you’ve created some of your memorable experiences with it. However, now that your small family is growing and you have recently welcomed two new members to the family in the way of twins, the car is starting to feel a little bit small and inadequate. And while you might be thinking about selling it and buying a new and bigger one, your budget might not match your needs.
Buying a New Family Car
It goes without saying that a car is a major purchase and its price can exceed one’s disposable income. This explains why many people plan thoroughly before finally making the purchase. It is important for all family members to be involved in the decision-making process and be aware of the expected changes.
To help with your purchase, Alpha Car Finance has provided some expert tips on how to buy a car without hurting your finances.
Create and Assess Your Budget
Purchasing a car is a big decision that should be given proper consideration. You don’t just wake up one day, decide to get yourself a new car, walk into the dealership and drive away. There are many factors that you need to consider, including whether you are actually able to afford it.
There are many expenses that come with raising a family including food, school tuition, day-to-day expenses as well as other costs. Thus, before purchasing a second car, you need to determine how much you can afford to spend on the car without interfering with your other expenses.
Should I Buy a New Car or a Used One?
After creating a suitable budget, you need to think about whether you should get a new or used car. Both options have their benefits and downsides, which include:
Pros: Latest technology, warranty availability, minimal repairs, better driving
Cons: More expensive
Pros: Much cheaper, achieves the purpose, looks relatively decent
Cons: May have a history of repairs, fuel inefficiency, the probability it won’t drive well
You can get great used car finance deals. Thus, before making a final purchasing decision, you need to carefully weigh the pros and cons of each.
After coming up with a budget and deciding between a new or used vehicle, you need to start shopping around. There are many car dealerships out there and through proper research, you can find a great deal on your desired vehicle. Among other things, you need to find out about their payment policy and interest rates. You should also consider your usage needs. This way, you will be able to determine how much they value their customers. It goes without saying that you should go with the one with the best rates.
Downsize Your Current Car
When looking to buy a new car, a great option is to sell your existing one, earn some extra money, and add it to the funds set aside for your new family car purchase. However, you will need to consider its current condition. A properly maintained car will obviously sell for a better price than a poorly maintained car.
Finally, you need to weigh the various options available for acquiring a new car. Think about whether leasing or buying a car is the best option for you. When it comes to leasing, you are basically renting it for a specific number of years without actually owning the vehicle. Leasing is a great option if you need the bigger car for only the period that your children are young and need to drive them around. In addition, if you do not have enough money to invest in your preferred vehicle and also maintain it, leasing offers the perfect solutions since it has lower monthly payments compared to other options as well as lower maintenance costs since this duty primarily lies with the leasing company.