Are you in the market for a new car? If so, there are some important factors to consider. First, it is crucial for you to think about how much you can afford. Knowing that there are companies that can help you obtain financing is comforting.
Canada Drives has been in the business of offering bad credit car loans to individuals who rely on a car to get to a variety of important destinations. Being attuned to the realities that not all credit situations are alike and that financial challenges can prevent drivers from securing loans, is at the heart of why Canada Drives is so committed to facilitating these loan relationships to Canadians.
Another major part of this process is knowing how to save money on the cost of a car. This can be done through planning and of course proper budgeting techniques. Find out how even 2 hours of planning can help you develop an effective savings plan that will help you afford the expenses associated with buying a new car. Not only will you be able to save for your down payment with more ease, you can also gain more insight into which car loan will best align with your financial needs.
Buying a car is a huge financial purchase – one of the largest you will make. This is why it is important to do some planning and perform some research that will help you understand the financial realities, as well as how you will be better prepared to afford this vehicle. Additionally, you may also find some effective methods of saving money off the cost of the vehicle overall.
Knowing What you Can Afford
This first part of the process requires that you examine your own finances and access how much you can afford. What types of vehicles are within your price range and what ones are not? Not only does this help you narrow down your choices, it also helps to prevent you from getting into a situation where you may spend beyond your means. At this point in time it is a good idea to design a budget. While it is likely that you already have a budget, this may not already include the cost of a vehicle. So in this case, essentially what you are doing is re-evaluating your budget and identifying how much room there is for an upcoming car purchase.
Here is a checklist that you can use as a guideline when planning for your vehicle purchase:
Costs of Owning a Car
- Initial purchase price/Down payment
- Registration and title costs
- Sales tax and GST/HST
- Financing costs
- Scheduled maintenance
- Storage (renting garage space)
Costs of Operating a Car
Maintenance and repairs
Parking and tolls
Start to Save
Once you have determined how much you can afford to put towards your car each month, you may find you need to save a little bit extra for a down payment. Keep in mind that a down payment is typically at least 10% of the total vehicle cost, however if you are able to make a higher down payment, your monthly payments and total loan size will be smaller. Ultimately, you don’t want to make a down payment that is too high, as this could mean you are depleting your savings more than you should. This is again why, saving enough for the down payment and planning ahead will be important.
Research Different Car Dealers
This part of the planning stage can also involve looking at different car dealers, also keeping your eyes open for promotions and sales that may enable you to save some money on a car. Without spending some extra time locating a variety of dealers, you may find that you end up paying more than you need to. The same goes for financing. Looking into your financing options is a good method of finding better rates and loan features that will help you buy your car, in addition to having a better chance of saving on the total purchase.
Contacting Canada Drives can also help get you where you need to be in terms of car financing. We can help connect with you a with a lender who can help you find a loan that can meet your needs – even if you are in a difficult credit situation. Overall, if you take the time to plan – and in this case just 2 hours of planning, this can help you make better financial choices, even saving money in the process.