How To Finance Your Dream Car

Everyone has that car that they would buy at the drop of hat – if they could afford it. Whatever the car of your dreams is, your finances are often the biggest obstacle between wanting and buying. You might find yourself assuming there is no way you could afford something you want – even though there could be ways to do it after all! Whether you want a roomy car which you can take the kids for road trips; a sleek sports car; an off-roader or an eco-friendly electric car, you could be missing out on the opportunity to turn your dreams into reality.

And no – there’ll be no scam-selling here. Only simple, proven ways to finance your dream car which won’t put you in financial danger, and will help you take your work to the next level.

1. Lease and Lease To Buy

Buying an expensive car such as a Tesla outright is super expensive. Most people don’t simply have the money sitting in their account to make such a large purchase. Leasing is a scheme most car companies offer, and allows you to pay monthly instalments for your car instead of all at once. Just like a rental payment, you pay an affordable amount each month – except unlike a rental payment, you can own the car at the end of the period. That’s right, lease-to-buy helps you maximise your finances by actually owning the car at the end of the payment period. 

Many people do not use the leasing option and instead plunge themselves into dangerous debt, all to own a car that looks cool. This is a highly risky move, as it creates personal financial problems down the line if the debt is unpayable; plus, outstanding debts affect your credit score, affecting you negatively for years to come. For more info on debt and debt discharge, learn more here.

2. Buying Second Hand

A lot of prospective car owners turn their noses up at the prospect of buying a second-hand car. However, second-hand cars are a great halfway house between saving money and owning a car that’s perfect for you. Second-hand does not mean broken or damaged; when bought through the right dealership which is trustworthy and has a good reputation, you can safely acquire a vehicle which will last for years and years to come.

Did you know that a car loses value as soon as it is driven off the lot; and within a year it may have lost 40% of its value? That means you could acquire a year old or two year old car, which is still in top condition, for a fraction of its original price.

Conclusion

Your ideal vehicle is at your fingertips; all it takes is research, planning, and a financial strategy. You may not have realized before now that financing your dream car is much easier and more accessible than you originally thought!