How prepared are you to buy a car?
Am I prepared to buy a car in 2023?
Dear, Jannou I'd like some advice on whether buying a car in 2023 is right for me, and how can I tell if I'm ready for such a loan and commitment?
Dear reader, if you're like many others, one of your 2023 goals is to buy a vehicle, whether it's your first or you're looking for an upgrade. Having your own vehicle can seem thrilling and feel like a necessity in so many ways. The convenience of having your own and being able to jump in whenever you want to get to your destination can be quite liberating. However, owning a vehicle can be difficult if we are not fully prepared for such a move. Fortunately, there are a few things you can do to ensure you make the decision that is right for you.
Ultimately, this decision is dependent on several personal factors, and we believe you should consider the following before making your decision.
- Finances-We believe that the first and most important factor you should consider is your financial situation as purchasing a vehicle is a major investment and necessitates a thorough examination of your finances. Some people even compare owning a vehicle to having a child as it requires regular maintenance and spending. Remember that it is one thing to be able to afford the monthly payments, but it is quite another to be able to afford its upkeep and maintenance. Having a car incurs additional costs such as maintenance, insurance, and licensing. Before making such a decision, it is critical to conduct an honest financial audit of yourself.
Purchasing and obtaining a vehicle loan while also having other debts, monthly obligations, and insufficient income can turn your dream into a nightmare. Adding a new financial responsibility to an already unstable stack of financial issues has the potential to crumble the tower. As a result, before proceeding, it is critical to ensure that your finances are in order and that there is stability. Buying a car and getting a loan is a multi-year commitment, so make sure you can comfortably make the monthly payments as well as afford the vehicle's maintenance.
If you are unsure whether your finances are adequate, come in and speak with a loan officer about your debt-to-income ratio.
- You know exactly what you want- Another factor is that you know exactly what car you want, what features you want, and how much you are willing and able to pay. You should not be ready to commit unless you have decided on a vehicle. It's pointless to buy a car and then have regrets months later. It is critical to ensure that the decision you make is the best one for your needs, lifestyle, and budget. Before making this decision, ensure you have done your research and is certain that this vehicle is right for you. Once you've identified one, it demonstrates your readiness to move forward.
- You have done your research on maintenance and upkeep costs- Another factor that can determine how prepared you are is having done research on maintenance and upkeep costs. This will provide an overview of your expenses and assist you in determining whether you can comfortably meet these costs. The cost of maintaining a car over its lifetime is frequently higher than the cost of the initial purchase. Whether new or used, all vehicles will eventually require maintenance that must come directly from your pocket, and if you require a loan for minor maintenance fees such as oil and brake changes, purchasing a car this year may not be the best decision for you. Another factor that persons seem to overlook is the availability of vehicular parts. It is important to know that the parts for your vehicle is easily sort whether it be locally or internationally.
Examine your financial situation and decide if you can afford to regularly spend money on:
- Engine oil
- New car lights
- Coolant fluids
- Spark plugs
- Battery
- Tires
- Car insurance
- Car repairs or fixes
- Gas
To help you save for such costs, we advise you to open a special savings, or an S-200 account. When expenses start piling up, doing your research, and having savings will help you be more prepared and less overwhelmed. If you cannot afford maintenance and upkeep, you will most likely be in over your head if you proceed with the purchase.
So, are you prepared for the next step?
If you've read this far and checked all three of these boxes, you're probably ready. If you haven't checked all the boxes above, you should reconsider and come up with a plan to get ready. Not sure where to begin? Jannou, has you covered; our loan officers will gladly guide you until you are ready to make such a commitment.
Need advice related to vehicle loans and purchases don’t hesitate to send us a message.
Written by: Sheralye Alcindor
