Budgeting for Your First Family Car
If you’re planning on buying your first family car, your budget is going to play a large role in which model you ultimately go with. Due to their larger size, family cars do tend to be more expensive than a small city car for example. So, how can you budget to ensure you end up with a stylish, as well as a practical family vehicle?
Here, you’ll discover some of the best tips and advice you can follow when budgeting for your first family car.
What is your budget?
Before you can start budgeting for your first family car, you first need to understand exactly what your budget is. How much can you afford to spend on the car? This will ultimately decide whether you can afford to buy a new or used vehicle.
Always be as realistic about your budget as possible. If you try and stretch it, you could end up facing financial difficulties later on. So, work out how much money you have available after bills and expenses each month and then how much you can realistically save toward the car.
Costs to consider
Once you have your budget in mind, you can then focus on trying to find the right family car to match it. However, it’s important to factor in more than just the purchase cost of the car.
As well as the initial expense of buying a family car, you also need to factor in the running costs, insurance and tax. It’s pointless buying a car only to realise you can’t actually afford to run it. You’ll typically find that cars which feature a large engine are the most expensive to run and they also lose a lot of depreciation value. These are just some of the things you need to consider when working out the costs involved.
Consider car finance
There are a lot of ways to fund a new vehicle so if you are struggling to save enough money to buy a new car outright, car finance may be a good alternative. However, it’s important to shop around if you want to get the best deal.
There are a lot of providers of car finance to choose from, so it’s always a good idea to do your research. You can take advantage of car finance calculators through companies such as the AA, which show you exactly how much you’ll be paying if you take out a policy. These are definitely worth looking into before making a decision.
Overall, budgeting for your first family car can seem like a huge challenge. However, there are ways to afford it even if you don’t have a large sum of money to put down as a deposit. The above are just some of the things to consider when searching for the right car.