No car blues can be very difficult to deal with and particularly for someone with a very busy life. Calling a taxi or an uber all the time can start to rack up and asking your friends to shuttle you around can make you feel like a hassle. Not that buying a car is completely out of reach, but new wheels can be quite expensive, especially if you have very little saved.
The great news is that today’s car loan providers can help get you into an affordable car with any number of lending programs through the dealership. Outside of the dealership, someone in need of a vehicle can find funding through online institutions and credit unions, which offer great rates. Contrary to popular belief, you can finance an affordable car without a down payment.
Let’s take a closer look at how you can get motoring without a down payment.
Calculate Your Available Income
Before even looking for a car, set a budget for how much you can spend on a vehicle. List all of your debts and expenses in a month and subtract it from your income. This amount is what you have left to spend on non-essentials, and ideally, financial advisors advise car buyers not to spend more than 35 per cent of their pre-tax annual income on a vehicle.
However, you have to also leave yourself a buffer for maintenance. Don’t forget to account for insurance, keep fuel costs in mind, and then calculate for maintenance and repairs. While you won’t have to repair your car every month, you should include this as a factor in choosing a vehicle because some makes and models are more difficult and expensive to repair than others.
Use Online Payment Calculators
One of the easiest ways to estimate your car payment is to use any of the online calculators to approximate your payment. Browse the various online institutions to get an idea of how much the interest rates are, keeping in mind that this rate will fluctuate depending on your own credit rating. Getting an estimate can help direct you toward a car that both meets your needs and is affordable.
Get Pre-Approved
One of the best ways to guarantee you do not buy more car than you can afford is to get pre-approved through a financial institution. This set amount will limit the number of choices you have, but it will definitely streamline the car-buying process. Furthermore, going into the dealership with a set amount always makes the process of buying a car much easier.
Seek Out Alternative Choices
Dealerships tend to mark up the value of new vehicles, and for this reason, consider looking at alternatives to a brand spanking new car. Going with a pre-owned vehicle significantly reduces the cost of the car simply because the car has depreciated once leaving the lot after its initial sale. This is one of the easiest ways to reduce the price tag.
Additionally, these days you can pretty much buy anything on the internet, including a car. The internet has changed the car-buying purchases. Someone looking to purchase a second-hand vehicle from a private owner can get great value online if they have some knowledge about cars. If you’re more old school and not really comfortable with using the internet to buy things, the classifieds are still a great way to find a used car.
Cashing In On A Great Deal
Financing a vehicle today is much more accessible than in times past. For one, consumers have more options regarding the types of loans that are available to them. More significantly, with online calculators and pre-approvals, consumers can go into the dealership prepared to purchase a vehicle that meets their needs without breaking their budget.