Sick of getting around by public transport and really need your own wheels?
The old bomb has had its day and you have really got your eye on a brand new dream car.
Thinking of buying a car? How do you go about saving money for a car? Should you buy your car through hire purchase or with hard cold, cash?
Buying a car is usually a big ticket item in anyone’s budget. If you don’t have ready cash on hand to buy the car, it is very tempting to go out there and buy one straightaway.
One could off course buy the car using a car loan/hire purchase but if you really want to save money, unfortunately there is no easy way out of it than through the sheer hard work of saving money. If you do your sums, taking out a car loan to buy that dream car could cost you thousands more bucks.
The same rules apply with any goal for saving money. Firstly, you need to decide what your goal is. What kind of car are you after and how much is it going to cost you. Think about the cost of buying the car as well as future costs of maintaining the car.
With the annual costs of maintaining a car, think about whether you afford it? No point buying that brand new bimmer only to find that you cannot afford the hefty annual maintenance costs.
Decide on the type of car you are after and narrow your choice down to a few models in the car category you are looking at. If you are buying a second hand model, you will need to know the year and make you are interested in. Research how much buying this car is going to cost you.
For a second hand car, something like The Red Book is usually a handy reference manual to check what is a reasonable price to pay.
The Save Money Hound suggests that you have a coffee break now to brainstorm ideas for what kind of car you after and what you can afford. Try and come up with a budget for your dream car, in terms of how much you think you need to buy your car.
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