Investing in your next car is a big decision. It is one of the few ‘big’ purchases you will make in your lifetime. After your home, it is probably the most expensive thing you will buy. That means you have to take a lot into consideration. It takes weeks of planning and researching. More importantly, it takes months of saving. If you want a good quality car, you have to be willing to pay for it. However, there are plenty of ways of getting that price down.

When the time comes to upgrade your car, you often have little other choice. The maintenance payments on your current car may be enormous. Older cars cost a fortune to fix. Plus, they are expensive to run. If your old car is giving up the ghost, it’s time to move on. Perhaps your living arrangements have changed. A growing family often means a car upgrade. The same it true if you move house. Whatever the reasons, make sure you budget and get a good deal.

Buying a brand new car is the best way to ensure safety, performance and low maintenance. Brand new cars are usually more efficient too so you’ll spend less at the pumps. However, not everyone can afford the high prices of a new car. There are alternatives out there for you and we’ll look at them here. Although we all love the feel and smell of a brand new car, it is not always realistic.

Save

Whether you buy a new car, a used car or lease, you’ll need to start saving. However you finance it, there will usually be a down payment of some sort. The bigger the down payment you can afford to pay, the better deal you will get. You’ll pay lower monthly payments on a loan or a lease. You’ll also incur much less interest and you’ll pay the car off faster.

Saving requires a strict lifestyle choice. You’ll need to set tough goals and targets and stick to them. The biggest thing is that you already have a big goal in mind: the car. Once you have something to work towards, it’s easier to reach. Try to set aside money like you would rent or monthly bills. Treat saving like a mandatory outgoing. Put it in a savings account that is difficult to access. It’ll stop you from dipping in and out of it!

Lease instead of buy

If you’re struggling to make the budget work when looking at a new car, consider leasing instead. Leasing is a cheaper alternative than buying. It involves a lower downpayment and lower monthly costs. The downside is that you never own the car outright. A lease is essentially a long-term hire arrangement with the car’s owner. You pay a monthly payment to use the car for a set period. When that period is over, you simply hand the car back. The lower payments mean you can typically afford a better and safer model. You will be covered for any maintenance costs too. The downside is that the car isn’t yours and you don’t have the opportunity to sell it on. (more…)