Published on January 23rd, 2020 | by James Simpson0
Car Ownership Ideas For When You Can’t Afford Your Vehicle
Owning a car can be a confusing time. You need it because it’s convenient and makes your life much more comfortable, yet it’s not cheap. Sometimes, the latter can outweigh the former, which forces you to make a decision. Do you keep it and continue to haemorrhage funds, money that you can’t afford to lose, or do you take the plunge and start using public transport?
Nobody wants to rely on buses, and you don’t have to if you’re willing to get creative. Here is a selection of the best options for motorists who want to cut their vehicle expenses while holding onto your current lifestyle.
The best way to ensure your car payments don’t escalate out of control is to choose a quality finance deal at the start. Firstly, your premiums shouldn’t go over a specific amount. Although the figure differs depending on your budget, the general rule is not to spend more than 10% of your gross income on a car. Another vehicle and asset finance to consider is a credit check. Hard ones leave a mark on your score, causing you to pay more in the long-term. By opting for deals that use soft checks, it shouldn’t lower your rating and increase your premiums as a result.
Go Back To Your Dealer
By signing on the dotted line, you’ve left yourself with no option but to pay the specified amount. Assuming this, however, is a massive mistake. Yes, you don’t have any legal protection, but you can play on their insecurities. The main one is that you’ll default on the loan and they’ll lose money. So, regardless of who has the leverage, you can use this to your benefit. All you need to do is explain the situation and renegotiate more affordable terms. The amount might not change, but the figure you pay each month could decrease. You’ll simply pay the loan for longer to make up for the deduction.
Selling your vehicle isn’t the advice you wanted to hear. After all, you’re trying to find the ultimate compromise where you can hold onto it and pay less. Although it sounds counterproductive, selling it is the answer. Why? It’s because you can trade-in your current model and use the money to finance a more affordable deal. The majority of dealerships are happy to take the figure off another one of their vehicles, and you can double down by opting for a used model. They’re cheaper but won’t necessarily breakdown or cost more to run.
Merge Your Schedules
The chances are that you and your partner have two cars. After all, it’s not convenient unless you have a vehicle on your own. Of course, driving separate cars only adds to your expenses, and it’s pointless. Okay, it’s not as convenient, but selling one and using the other as your family vehicle is a solid compromise. All you have to do is be organised to ensure your schedules are in sync.
Then, you’ll get the benefit of making use of a car while reducing your expenses.