How to Budget for a New Vehicle

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Whether it’s a first car, or an upgrade to support a growing family, buying a new vehicle is an exciting experience. Although with so many vehicle types and brands on the market, it can be tricky to settle on the right mode of transport.

The choice is made even more difficult when cost is added to the equation. Budgeting for a new vehicle can be difficult — but not impossible. Below are a number of pointers to keep in mind when you’re budgeting for that new car, motorhome, or motorbike:

Decide On Priorities

When you’re saving money for any future purchase, some sacrifices typically have to be made. With this in mind, decide on which expenses are a priority and try to cut out ones which are surplus to requirements.

For instance, you might enjoy a few drinks after work or be a regular at local fast food joints. Such expenses can easily eat — pardon the pun — into your expenses. Yet they can easily be rectified by staying in and preparing meals from scratch.

Get a Savings Account

Having trouble putting money aside? An effective way of doing this is by opening a savings account. With this, you can arrange for a set amount of money to be transferred from your bank to the savings account each month.

Although it might seem rather redundant to have such an arrangement, it’s easy to fritter away money that you plan on saving if it simply remains in your bank account. By ensuring you have cash going into a savings account regularly, it instils a level of discipline and routine where you’re less likely to tap into the money being stored.

A Personal Loan

Credit cards, hire purchase, finance through the dealership — all of these are viable options when it comes to covering the cost of a new vehicle without initially spending your own cash. However, a personal loan can often offer the best in terms of convenience and value.

Aside from major banks, there are providers that specialise in vehicle finance. One of these is Auto Finance Online, which utilises a panel of lenders to not only supply competitive insurance rates, but also help those with bad credit. Plus, instead of needing to save up your money, you can have the finances immediately to purchase your vehicle of choice.

The Costs After Purchasing

It’s incredibly easy to fall for temptation when purchasing a new vehicle. For example, you could be sucked into buying a flashy and expensive new car simply because you can cover either the monthly repayments or asking price. While the cost of the car grabs the headlines, there are other expenses which need to be considered.

Insurance is arguably the biggest expense, and the cost of it can vary massively based on various factors. With this in mind, check the type of vehicle you want to purchase, and see what insurance rates come along for the ride. Other additional vehicle costs include petrol consumption and servicing.

 

 

 

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