First Car Purchase Tips

Car purchase unlocks a great achievement in one’s life. But if you are doing it for the first time you will find it quite difficult and run into a lot of obstacles. Not much people can save up money for their first car in advance. There are many financing options you can subdue to, but before you decide on one, you have to make good preparations. If this is your first car, be patient, it will lead you to a good deal in time. I am going to present you some of the steps I made before engaging in a purchase which, I hope, will help you greatly as they have helped me.

Determine the boundaries of your budget

Before you start dreaming of the perfect car for you, take the time to review your budget. This is a crucial beginning step. You may ask yourself why. Before engaging in a car loan, you need to know what your monthly incomes are and whether or not you have any extra cash left at the end of every month. It is also advisable to review if that amount of extra cash is repeatable. If you are a teenager, you should have a talk with your parents to see if they are willing to help you with some monthly payments if you get stuck. If you decide to get a car loan, you need to ask yourself how much you are willing or able to borrow. This will create a mere picture of your budget and will help you a lot along the way. It is important to know what amount of cash you are working with in the future.

Decide on the type of car you wish to purchase

When you have your budget determined, this step will come easy. Actually, it is the step that is both practical and fun. If you have plenty of time to save and a regular income of extra cash in your monthly budget you should go for the brand new car.  There are various types and models you can choose. However if you find yourself more financially restricted you should consider buying a used car or a model that costs less. The choice of car you make can really help you along your savings period. Saving money for a basic concept of “car” can be quite dull, but if you are saving for the brand new Opel Insignia your savings get a brand new spark.

Make your savings practical and automatic

Making your savings as practical and automatic as possible will relieve you from the unnecessary stress that will follow you during the saving period. It will help you to stay on track. You can go to your bank and make arrangement to transfer your funds automatically to the second account which will represent your car fund. The money you get from your part time jobs as well as extra income you have at the end of the month will be placed directly in this fund.

Also it is great to set some ground rules such are the date when you will put money in your car fund. For example, not at the end of the month, or the beginning or in the middle, but make it a specific date. You can also determine the percentage of your monthly income (without the extra cash) which will be given to the car fund. The car fund is a relic! It shouldn’t be touched at any costs except in cases of great medical emergency.

Remember that well!

Last step: Rewards!

This is something you do for yourself. The reward method is extremely successful and needed during the saving period. Whatever the reward is, big or small, diner or a spa, new clothes or a new tool, it does not have to be neither big nor expensive, as long as it satisfies your soul. This is a great way to stay disciplined during your saving period. But you should not forget the cause. The best prize comes last.

As we mentioned before, car purchase is one of the greatest achievements you unlock and the greatest financial step you will make in your life. There is no greater prize than the satisfaction of the success you made all by yourself. I hope you will have fun as much as I did during that period and I wish you happy savings.