Cars can be expensive. And while some fortunate individuals have a financial standing that allows them to buy first-hand BMWs and Porsches, most of us have to settle for the more humble, often second-hand, cars.
When you’re buying a car on budget, you have several options. You can get it out of your pocket, with a car loan or home loan, or by buying directly from the dealer and negotiating terms with them. Let’s have a closer look at each of these options, so that you can decide on your preferred financing method and get that car.
1. Finance the Car Out of Your Pocket
Financing a used car out of your pocket is much easier than doing so for a new one. Buying second-hand cars is a smart solution for those who need either a temporary or long-term vehicle.
There are many advantages to buying a used car, as opposed to a new one, including getting a vehicle for less cost and avoiding the taking up of high-interest loans. However, you also need to be cautious when purchasing used cars, as there may be hidden issues that could come back to haunt you later on.
If you’re lucky – or just a prudent saver – you might have enough money to finance the car you want up-front. In this case, you can skip to the heading on “The Best Affordable Cars for Sale in the Market,” under which you will see some of our personal car recommendations.
2. Finance the Car with a Car Loan or Home Loan
When people go looking for a loan to buy a car, the most obvious solution would be to get a car loan. This allows you to borrow money to purchase a vehicle, with the money typically being paid back in installments over time. However, car loans are typically more expensive than home loans, because they involve greater risk for lenders.
Another option would be to refinance your home loan so that it will allow you to purchase the car with the same interest rate as you already have for your home. According to this website www.lanfordeg.no, refinancing your mortgage is actually one of the best ways to finance your new car. This will usually give you a lower interest rate than if you were to use a car loan, and can save you hundreds – even thousands – of dollars.
3. Buy Directly from a Dealer and Negotiate Terms
When buying a used vehicle from a dealer, you need to be aware of the terms and conditions of the sale. If you are not, you might end up paying more than what is fair for your purchase.
Buying a car is a complex process, which demands significant time and knowledge. This is why people tend to rely on their dealers for completion of the process. However, you can save yourself some good money by negotiating terms directly with the dealer, as stated in an article at CNBC. You’d especially do well to research prices, so that you can bargain intelligently.
Once you’ve decided on your preferred financing method, you’re ready to start looking for an affordable car that meets your heart’s desire (unless you’ve already found it).
The Best Affordable Cars for Sale in the Market
Cars can be as varied as people. They come in different shapes, sizes, and colors, and have a completely different feel. To help you in the process of figuring out what car is right for you, we want to personally recommend three affordable cars that we like, and that are selling well in the market.
The Ford Fiesta is a subcompact car that is great for commuting. It has an impressive fuel economy of 34 miles per gallon in the city and 40 miles per gallon on the highway. The Ford Fiesta is known to be one of the best selling cars for years now, with over 24 million units sold worldwide.
The Volkswagen Golf ranks second in sales, with over 12 million units sold worldwide. It has an interior design that has been able to stay relevant for years now, despite being updated every few years. The Volkswagen Golf is also known for its roomy interior and strong engine performance.
The Honda Civic is one of the most popular models of cars produced by Honda. It offers reliable performance, making it one of the best choices for people looking for a car that will last.
(thanks to the website www.autocar.co.uk for helping compile the list above!)
Buying a car on a budget can be a tricky process. After looking at the main financing options you have, and some high-quality and affordable cars, we hope it has become a little easier for you.