Buying a car you can afford

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Buying a car is by no means an easy task. It takes commitment, both personally and financially and requires patience and perseverance to find a car that suits you to the tee. Taking the time to research and read up on different cars can go a long way when trying to decide what car is right for you. Ultimately, money will play a pivotal role in your decision to buy a car and should be considered seriously before forking out thousands for your next ride.

How much should you spend on a car? The answer to this question may be different from person to person but a simple rule should apply, buy a car you can afford. Affordability is something every car buyer should consider. The decision to buy a car should, in theory, be based on your income, how much you earn and how much money you are able to spend on a monthly basis towards car payments. Your disposable income will reveal how much you are able to spend but it must be remembered that the rabbit hole goes a bit further than that.

Many people think that once they have bought a car, the buck stops there. Wrong. There is much more to consider. Buying a car is one thing, but owning a car is another. Car ownership encompasses many additional costs that need to be factored into what car you can afford. Things such as down-payment, interest rates, financing, insurance, maintenance, fuel and depreciation all add to the cost of owning a car and cant be ignored.

If you are considering buying a car, be sure to consider all the costs of owning a car before buying a car, doing this will hopefully result in buying a car that suits you perfectly without risking your financial security.  

The Pain of Car Depreciation

Tweet At some point in most people’s lives comes a time to decide whether or not to buy a car. Buying your first car can be an exciting and rewarding experience and many people around the world derive great pleasure from buying and driving cars. For some, cars are an obsession and for others it’s simply a means of transport. Look a bit closer though, or at least from a financial perspective and the car of your dreams can quickly mutate into your worst financial nightmare.

If there's one word that makes any car buyer cringe, it’s depreciation, the devil thorn in every car buyer’s side. Now we know cars aren’t cheap to begin with, so when you fork out every last cent you have and drive your new car off the showroom floor, it’s worth a big chunk less than what you just paid for it. It’s true, depreciation can make you cry.

However, there is nothing you can do about it and your car will lose value over time, this is a fact. Cars are not an investment, they are more like parasites feeding off you as long as you choose to drive them.

The best you can do is to wipe your tears away and enjoy your car for what it's worth. It’s also a good idea to do some reading and find out more about how car depreciation affects the value of a car. The more knowledge you have the better equipped you will be when buying your next car.

Share your thoughts on car depreciation in the comment box below.

What type of car do you drive?

Tweet It goes without saying that people drive different cars for a million different reasons.

Observing traffic from my office window makes this statement somewhat obvious, yet I wonder what informs people to drive the cars they drive. Every single car is different from hatchbacks, sedans, coupes, station wagons, sports cars and SUV’s to 4x4’s, convertibles and minivans. Then there are car brands, more than fifty of them in South Africa. It’s no wonder buying a car can be confusing, where on earth do you start?

On second thought though, many people probably start with purpose, asking themselves ‘What type of car should I buy?’. Affordability would also be important for many people, especially in today’s economic climate. We all know cars are expensive and buying a car is only the beginning. Factors such as maintenance, car finance and car insurance play a pivotal role in what car people choose to drive.

For interest sake, I drive a Volkswagen Golf Chico 1.3 and have been for many years. Now, I know it’s by no means the prettiest or even the safest car to drive but it fulfils my needs and more importantly it’s a reasonably affordable car to maintain and insure, so that’s a big plus. On the downside, it’s an old car and it has seen better days. That means that when I want to sell it, I will probably get enough for it to buy a loaf of bread. Selling aside, my Golf Chico still serves me very well and until it decides to surrender, I will still drive it.

I’m interested to know, what type of car do you drive and why? If you have a spare moment, drop a comment in the comment box below and share your thoughts. Happy driving.