Having a way to get around our is important. Gone are the days of Burke and Wills, where walking and camels were the norms. Having a horseless carriage makes life so much simpler for Australians. With that said, it can be daunting out there to purchase a vehicle for some people.
Having the means to go out and buy your dream car seems like a tall order. It’s not as outlandish as it sounds. Car loans have become more forgiving, and are readily available (more on that later). The marketplace and financing options mean that owning your own dream car has never been a more accessible option than it is now.
Why Buy Now?
You may be wondering why you should take the plunge now. The main reason you should look into purchasing is that you have more buying power now than in years past. There are cars coming off of the assembly line every day, even though there are significant signs that sales have slowed. In the US, the average car lasted 74 days on the lot in February, which is a 40% increase from 5 years ago.
Staying with the US, the number of used vehicles has increased as well, which means their prices are significantly lower than 3 years ago. This is because those vehicles are being returned. Similar supply and demand issues are arising in Australia. SUV prices are down 5.4% and passenger vehicles are down 9.3%.
How to Buy your Dream Car
Because of the heightened supply of vehicles, now if your chance to buy your ideal vehicle. Here are some things to keep in mind when you head to the dealership.
Getting Approved
Having the money in place for payments is very important. Unfortunately, even after carefully planning your finances, you may still need to find some cash for your dream car. Before heading to the dealership to get your new ride, you need to consider heading to the bank. Their help in your quest for your dream car can mean the difference in the long run.
Banks will pre-approve you for a car loan, as will credit unions. By getting these institutions to approve your car loan, you’ll be able to potentially negotiate with the dealership for a better rate. Once you are approved, you’ll be able to look into your finances to see what you can afford.
Proper Budgeting
Nobody enjoys the budgeting process. It’s not the most alluring thing to do when you’re getting ready to make a purchase, but it’s an important step towards making a good decision financially. As you go through your budgeting process, you’ll be able to see how much you can put towards a vehicle while seeing the state of your finances.
A good habit to have while creating your budget is to look for ways to save. Needless to say, if you can curb certain expenses, you’ll be able to buy that car a lot faster. Go through your expenses and see what’s there. There may be some that are necessary (rent, insurance, etc.) but there will probably be some that aren’t as important (dining out). Having a good sense of what to cut and what to keep will get you your dream car a lot faster.
Drive Away in Your Dream Car
Once you’ve looked through your finances and have been approved for a car loan, you will be ready to pick up the car you’ve always wanted. That’s really what the bottom line is. Be prepared to take the steps needed to buy the car you want. By getting approved and having a financial plan, you’ll be behind the wheel in no time.
