6 ways you can budget towards buying a new car

Last updated on July 28th, 2021 at 05:01 pm by Bill Tsouvalas

Buying a new car may be on top of the things that you want to achieve this year, and with so many finance options available this is possible. It does help to have a budget in place to help you pay off your new wheels without biting a chunk out of your budget.

6 ways you can budget towards buying a new car in 2019

Have a set budget

Setting a realistic budget can prepare you for the purchasing of a new car. If it is your first time buying a car, it is important to research the amount you can borrow and the costs that come with buying a new car such as stamp duty, fuel, registration, finance costs, running costs, extras, insurance, repair and Maintenace costs. If you already own a car, it can be useful to look for a car that comes with handy features and costs that are more suited to your budget.

Financing your car

Not everyone is able to afford to buy their car with cash. Therefore, it pays to know how does a car loan works. With so many car loans on the market, things can get tempting and confusing. Therefore, it pays to shop around for a car loan and comparing it to find the best possible rate. Taking out a car loan or dealer finance that comes with a balloon payment may initially lower your repayments, but it could come with a sizeable amount that will need to be paid off by the end of the loan term.

Compare your options

Choosing between new or used car can refine your search for your new wheels. There are various car comparison sites that can help you refine your search for a car that is within your budget range. Doing your research through such sites can give you insights for the general asking price, and give you leverage when it comes to negotiating prices.

Create a checklist of must have’s

This is a list of must-have features that you are not willing to compromise on. As much as you want all the bells and whistles, it is important to look out for things that are practical. Writing down the features such as; seating capacity, luggage space, its security system, and safety technology can make your hunt for a car easier. It can also help you separate your needs from your wants. This can also help you weigh if those added extras from a dealer are worth it or not.

Safety ratings

Checking a cars safety rating is something that some Aussie drivers overlook, but is equally important in the car buying process. Having a car that will protect you and your loved one is an investment. You can check your cars safety rating on the Australasian New Car Assessment Program (ANCAP).

Have a deposit in place

To make financing your car more affordable it is best to have at least 10-20% of the deposit saved up. This can increase your chances of getting a loan with a low interest rate. It also means that you don’t have to borrow a lot of money from your lender which equals being able to pay off your loan quicker.

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