Top 4 Tips to Avoid Spending Too Much Money On a CarOct 26th, 2020
Before you make the decision to buy a new or used car, you ultimately need to ask yourself a much larger and more fundamental question: can I afford it? The
The Finch Used Cars team is here to help our customers drive away happy, not only with the vehicle that they've chosen, but with the price that they paid. In order to help you determine just what that price is, here's a list of the Top 4 tips to avoid spending too much on a car.
1. Find your Motivation
Before you even look at the math, it's important to determine what your motivation is for purchasing a new vehicle. Is is a necessity or a luxury? Does the vehicle that you'v been pining after have practical applications to your day to day life? Are there other major purchases that you may have coming up in the near future that must take precedence over your vehicle purchase?
Walking into the car-buying process with your eyes open allows you to align your motivations with your budget and helps you make the smartest decision possible. If you love a particular vehicle and you can afford it, don't be afraid to treat yourself. If you can't afford it, do not make a decision that could lead to years of financial pain in return for a bit of instant gratification when less expensive options may have done the trick!
2. Determine how much you should spend
Now that you've firmed up your budget, its time to figure out what vehicle or vehicles you're looking for. What are your needs and priorities? Is outstanding fuel efficiency the key? Do you need a vehicle with all-wheel drive? Are you on the lookout for a ride with the most cargo space possible? Asking these questions should help you narrow your search down to a specific body style, be it a Crossover, SUV, Pick-up Truck, Car, Minivan or anything else.
Once you've got a rough idea of what you're looking for, it's time to research the various vehicles available within that class. Obviously you can do much of this research online, but be sure to talk to your friends and family members as well to get their thoughts.
This research should point you in the direction of a particular model or a couple of different options on which you can focus your search. It allows to factor in vehicle quality, consumer satisfaction and price to hone in on the Used Car that's perfect for you and save you plenty of time and money in the future.
Additionally, doing your research can help you realize the benefits of purchasing from a dealership rather than buying privately and it can help you determine which dealerships offer more bang for your buck. For example, Finch Used Cars come with an unprecedented guarantee that includes a 90 Day Exchange Privilege, two years of free oil changes, free vehicle pick-up and drop-off for service and so much more!
3. Understand all of the costs associated with car ownership
Once you've found your motivation, determined how much you should spend and found the perfect car, it's critical to understand that the "sticker price" isn't the only cost to account for.
Vehicle ownership requires consistent budgeting to account for future costs like gas, insurance, maintenance and more. It's important to understand these costs and factor them into your budget when purchasing a vehicle. Once you account for these costs, you may come to realize that you ought to be looking for a less expensive vehicle than you'd originally calculated. Think of it this way: what good is that beautiful new car that fits all of your needs if you can't afford to put gas in it?!
Finch Used Cars is your home for Used Cars, Trucks, Vans and SUVs in London ON! Use the links below to shop our massive used car inventory by body style today!
4. Plan ahead
Even if you're not currently in the market for a new car, you know that you'll be shopping for one again in the future. Fortunately, there are a few simple steps that you can take to set yourself up for future car-buying success.
First, it's so important to keep an emergency fund that you can lean on in the case of unforeseen circumstances like a serious illness, unemployment or your current vehicle breaking down unexpectedly. With an emergency fund in place, you can be prepared to cover the cost of unexpected repairs or even a new vehicle without seriously impacting your long-term finances.
Second, it's equally critical to keep making the smart decisions that result in building a good credit score. Should you choose to finance a new or used car in the future, your credit score will have a significant impact on that process. Your credit score is directly linked to the interest rate that you must pay on the purchase of a vehicle or, in some cases, whether you can get a Car Loan at all!
Although every Finch Used Car dealership has great relationships with a wide range of financial situations in order to be able to secure financing for customers with difficult credit situations, it's always best to start taking measures today to build your credit. Over time, simple things like paying your bills on time and decreasing your debt will have a substantial positive impact on your credit score.
Finch Used Cars encourages all of our customers to be both careful and conservative when it comes to budgeting for a car purchase. Building beneficial budgeting and spending habits will ultimately allow you to have a more successful and less stressful car-buying and car-ownership experience.